Thai energy company Bangchak Corporation is set to expand its used cooking oil (UCO) collection network as part of its plan to produce sustainable aviation fuel (SAF) commercially, the Bangkok Post wrote.
Through its SAF production and distribution subsidiary BSGF, Bangchak signed a memorandum of understanding (MoU) with New Biodiesel to buy UCO collected in southern regions of the country, the 15 October report said.
As part of its plan to produce SAF, Bangchak had also acquired a 45% share in Thanachok Vegetable Oil Co, a parent firm of New Biodiesel, which specialises in palm oil production and UCO collection, the report said.
“The MoU aligns with the circular economy concept,” Bangchak senior executive vice-president for refinery and oil trading business Thamarat Paryoonsuk was quoted as saying.
“This also means we can reduce the improper disposal of used cooking oil, which affects the environment.”
In addition, Bangchak had also signed agreements to buy UCO from 17 firms, including food and restaurant businesses such as Five Star Chicken Co and the Singapore-listed food and beverage company Thai Beverage, the Bangkok Post wrote.
The company said it also planned to buy UCO from small food shops and street food vendors.
In September, Bangchak signed an agreement with vegetable oil collection company Thanachok Oil Light and biofuel producer/distributor BBGI to form a joint venture company – BSGF – to produce SAF in Thailand.
BSGF would be 51% owned by Bangchak, 29% by Thanachok Oil Light and 20% by BBGI, Bangchak said on 1 September.
Scheduled to start commercial operations within the first quarter of next year, the facility near Bangchak’s refinery in Bangkok’s Phra Khanong district would have an initial production capacity of 1M litres/day, the Bangkok Post wrote.
SAF produced by the factory would be sold to Japanese chemical company Sumitomo Corporation, the report said.
