Bangchak Group operates SAF plant at full capacity
Ongorn Pleanrungsi, an executive with the Thai energy company Bangchak Corp., said at a recent refining and petrochemicals conference in Asia that joint-venture company BSGF is now operating its sustainable aviation fuel (SAF) production unit at full capacity.
The hydroprocessed esters and fatty acids (HEFA) synthetic paraffinic kerosene (SPK) unit, scaled at 1 million liters (264,172 gallons) per day and located at the Bangchak Phra Khanong Refinery in Bangkok, Thailand, came online earlier this year.
The facility is supplying customers in Europe, where SAF mandates are in place.
Pleanrungsi called on governments to establish clear targets and a roadmap for SAF adoption to support long-term offtake agreements between producers and airlines.
The panel, titled, “Future of Sustainable Fuels—From Policy to Commercial Scale,” was part of Asia-Tech 2026: Asia Refining & Petrochemicals Tech Forum organized by Euro Petroleum Consultants.
The panel explored technology, low-carbon fuels and the commercial scaling of SAF production and use.
SAF currently costs approximately two to three times as much as conventional jet fuel, reflecting feedstock costs, which account for 70 percent to 80 percent of production and processing costs.
This price premium is a challenge often faced by low-carbon products during the early stages of market development, with potential for costs to decline as production and adoption grow.
Carbon pricing, subsidies and green loans can help improve competitiveness and build investor confidence.
Bangchak Group produces SAF from used cooking oil, collected through its “Fry to Fly” initiative in collaboration with government agencies, educational institutions, households, service stations and other partners to secure sufficient quantities of quality feedstock at appropriate costs.
The group said it is also exploring alternative feedstocks, including certified sustainable palm oil, palm fatty-acid distillate (PFAD), and feedstock derived from palm-oil mill effluent (POME) while prioritizing traceability, deforestation prevention and compliance with market-specific sustainability requirements.
It also focuses on improving operational efficiency, managing energy and hydrogen costs, and adjusting the production mix between SAF and renewable diesel, also known as hydrotreated vegetable oil (HVO), in response to market conditions to support long-term growth in the low-carbon fuel market.
