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  • Bangchak Corporation Public Company Ltd.

Bangchak, Sumitomo forge alliance to advance UCO-to-SAF supply chain

Photo: Bangchak Corporation Public Company Ltd.

Thailand-based transnational energy conglomerate Bangchak Corporation Public Company Ltd. announced April 3 that it has joined forces with Japan-based chemical company Sumitomo Corp. in a strategic partnership through a framework agreement for the purchase and sale of used cooking oil (UCO) and neat sustainable aviation fuel (SAF).

 


“This collaboration marks a pivotal advancement in the strategic partnership between the two corporations, underscoring their shared values and dedication to sustainable development and environmental stewardship,” Bangchak stated.

 


This inaugural strategic collaboration between the two companies seeks to establish a resilient and efficient UCO-to-SAF supply chain.

 


“The signing of this agreement marks a significant milestone for the joint efforts of Bangchak and Sumitomo to advance decarbonization initiatives,” said Thamarat Paryoonsuk, the senior executive vice president of Bangchak’s refinery and oil-trading business group. “This strategic partnership signifies a collective dedication to achieving net-zero emissions and propelling the development of cleaner-energy solutions for the future. Through this collaboration, Bangchak and Sumitomo aim to harness our combined strengths to generate shared value while championing ambitious sustainability objectives.”

 


Bangchak unveiled its SAF-production plan in September 2022.

 


The SAF-production unit at the Bangchak Phra Khanong Refinery in Bangkok is projected to achieve a daily production capacity of approximately 1 million liters (264,172 gallons).

 


This endeavor echoes Bangchak’s commitment to achieving carbon neutrality by 2030 and net-zero greenhouse-gas emissions by 2050, aligning with the International Air Transport Association’s “Fly Net Zero” strategy.

 


“The company’s commitment to producing SAF from UCO underscores its dedication to environmental stewardship and its aspiration to lead the energy transition,” Bangchak stated.

 


Earlier this year, Bangchak commemorated the laying of the foundation stone for Thailand’s first SAF production plant.

 


Scheduled to commence operations in the first quarter of 2025, this facility is poised to enhance Thailand’s standing in the SAF market.

 


The SAF production unit at Bangchak Phra Khanong Refinery will comprise two main units: the pretreatment unit (PTU) and the SAF unit, both incorporating cutting-edge technologies from world-renowned technology providers, according to the company.

 


In 2021, the IATA announced its “Fly Net Zero” commitment outlining airlines’ aspirations to attain net-zero carbon emissions by 2050.

 


This collective commitment signifies a united approach by the aviation industry to reinforce endeavors aimed at fulfilling the climate objectives set forth in the Paris Agreement.

 


Achieving these ambitious goals requires coordinated actions across various sectors.

 


SAF emerges as a pivotal element in this collective endeavor, with the potential to slash emissions by up to 80 percent compared to conventional jet fuel.

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