Construction agreement signed for SAF-production unit in Thailand

Chaiwat Kovavisarach, group CEO and president of Bangchak Corporation Public Company Ltd. (Photo: Bangchak)

Bangchak Group announced June 28 that a construction agreement has been signed between its joint-venture firm BSGF Company Ltd. and Japan-based TTCL Public Company Ltd. to build Thailand’s first sustainable aviation fuel (SAF) production unit.

The SAF-production unit at Bangchak refinery will incorporate Desmet’s preatment technology to effectively eliminate impurities and contaminants from used cooking oil collected from the “Fry-to-Fly” campaign and other channels.

Additionally, production will involve a deoxygenation process, employing UOP Ecofining Technology from Honeywell UOP to alter and crack the molecular structure using hydrogen.

The unit is projected to have a daily production capacity of approximately 264,000 gallons and is scheduled for commissioning in the fourth quarter of 2024.

“Bangchak refinery is now approaching a new era, poised to become a leader in future energy by pioneering the production of aviation fuel that can reduce carbon-dioxide emissions by up to 80 percent throughout its lifecycle compared to conventional aviation fuel from fossil fuels, and which also adds value to used cooking oil through the Fry-to-Fly campaign,” said Chaiwat Kovavisarach, group CEO and president of Bangchak Corporation Public Company Ltd.

Construction of the production unit from used cooking oil is a joint effort to support the aviation industry in reducing carbon-dioxide emissions into the atmosphere, according to plans of the International Civil Aviation Organization.

SAF has garnered global attention as a key fuel in achieving targets for CO2-emission reduction.

Notably, the United States passed the Inflation Reduction Act last year, which provides incentives to producers through tax credits.

Similarly, Europe has adopted a mandate requiring a minimum portion of SAF in the overall fuel supply, with targets set at 2 percent by 2025, 5 percent by 2030, and 70 percent by 2050.

Japan has also established a goal for international flights passing through Japanese airports, stipulating a blending ratio for SAF of 10 percent by 2030.

The general public in Thailand is encouraged to sell used cooking oil at participating Bangchak service stations and collection points in the Fry-to-Fly initiative to be used for producing SAF.