Bangchak forges deal with CPF for oils, fats

Energy conglomerate Bangchak Corporation Plc continues to acquire more used cooking oil to produce sustainable aviation fuel (SAF) by teaming up with Charoen Pokphand Foods Plc (CPF), which operates a variety of restaurant brands.
The cooperation agreement, which was signed on Monday, enables Bangchak and CPF to jointly manage used cooking oil and various fats from CPF’s food production facilities, including fats from CPF’s wastewater treatment plants and affiliated companies, to produce SAF through Bangchak’s SAF production and distribution subsidiary BSGF.
A biofuel for aircraft, SAF produces up to 80% fewer greenhouse gas emissions than conventional jet fuel, according to media reports citing various forecasts.
“This collaboration serves as a crucial driving force, enabling both companies to inspire positive change and create a sustainable future,” said Chaiwat Kovavisarach, group chief executive and president of Bangchak.
He said the use of used cooking oil and fats as a raw material for SAF supports the government’s efforts to promote circular economic development, which involves the upcycling process to add value to unwanted materials, making them usable again.
Bangchak is encouraging people to refrain from polluting the environment through improper disposal of used cooking oil, or by repeatedly reusing it, which is unhealthy, in a campaign dubbed “Fry to Fly”, or tod mai ting in Thai.
“More than 800 public and private sector locations nationwide are currently participating by supplying used cooking oil for SAF production,” said Mr Chaiwat.
At present, Thai people consume 1 million litres of oil a day. Up to 250-300 million litres of the total is left over from frying. If it is reused as frying oil, it would cause a health impact on consumers.
According to Bangchak, up to 60% of used cooking oil supplied to BSGF will be sourced domestically, with the remaining 40% to be imported.
The company’s construction of an SAF factory in Bangkok is 70% complete. The facility, with production capacity of 1 million litres a day, is scheduled to start operations in the second quarter of 2025.
This amount is sufficient to supply aircraft until 2030, said Mr Chaiwat.
Aircraft flying to Europe are required by the EU to have SAF comprise 1% of jet fuel next year, and the proportion must increase to 5% by 2030, he said.
Prasit Boondoungprasert, chief executive of CPF, said the collaboration with Bangchak aligns with CPF’s Sustainovation approach, which uses innovation to address food security and sustainable consumption.
He believes there is potential to expand the initiative to CPF’s international operations in the future.