Bangchak signs construction agreement for UCO SAF project

In Thailand, the signing ceremony for the construction marked the launch of Thailand’s first and only Sustainable Aviation Fuel (SAF) production unit from used cooking oil between BSGF Company Limited – a joint venture between Bangchak Corporation Public Company Limited, BBGI Public Company Limited, and Thanachok Oil Light Company Limited, and TTCL Public Company Limited, an esteemed engineering and construction company from Japan, with more than 20 years of business experience with Bangchak.

The construction of the Sustainable Aviation Fuel (SAF) 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 the plans of the International Civil Aviation Organization (ICAO). SAF has garnered global attention as a key fuel in achieving targets for carbon dioxide emission reduction. Notably, the United States passed the Inflation Reduction Act of 2022 (IRA) last year, which provides incentives to producers through a tax credit of USD 1.75 per gallon of SAF. Similarly, Europe has adopted a mandate requiring a minimum portion of SAF in the overall fuel supply, with targets set at 2% by 2025, 5% by 2030, and 70% by 2050. Japan has also established a goal for international flights passing through Japanese airports, stipulating a SAF blending ratio of 10% by 2030.

The Sustainable Aviation Fuel (SAF) production unit at Bangchak refinery will incorporate Malaysian-based Desmet’s Pre-Treatment technology to effectively eliminate impurities and contaminants from used cooking oil collected from the “Fry to Fly” campaign and other channels. Additionally, the production process will involve a deoxygenation process, employing UOP Ecofining Technology from Honeywell UOP, USA., to alter and crack the molecular structure using hydrogen, which is an effective solution to produce Sustainable Aviation Fuel (SAF) from Honeywell UOP. The unit is projected to have a daily production capacity of approximately 1,000,000 liters and is scheduled for commissioning in the fourth quarter of 2024.