In a groundbreaking step towards decarbonisation of hospital discharge aviation, Banchak Group officially launched Thailand's first sustainable aviation fuel (SAF) production unit at the Phra Khanong refinery. Operated by Banchaku affiliate BSGF Company Limited, the unit is the country's first dedicated facility that can produce 100% decent SAFs on a massive scale, marking pivotal moments on Thailand's clean energy journey.
The facility, which began plant performance testing in April, boasts an initial daily capacity of 1 million liters. Hydroponic esters and fatty acid (HEFA) technology are used to convert used edible oils and other fatty acid ingredients into ASTM-compliant aviation fuel. The SAF Unit operates under an international sustainability and carbon certification (ISCC) scheme and oversees the entire value chain, from raw material sourcing to distribution.
“This is Thailand's first fully integrated, neat SAF production facility,” said Chaiwat Kovavisarach, group CEO and president of Bangchak Corporation. “It exemplifies our commitment to energy innovation and strengthens our position as a pioneer in future energy solutions.”
The project was developed in collaboration with Desmet (Belgium) for the pretreatment process and UOP Honeywell (USA) for advanced hydroponics technology, ensuring strict quality control from hydrogenation to molecular reconstruction and fuel fragments.
In addition to a decent SAF, the unit also produces Bio-LPG and Bio-Naphta as by-products.
Globally, SAF has emerged as a key lever in reducing aviation emissions, according to IEA and ICAO. SAF can reduce lifecycle emissions by up to 80% and provide a scalable, cost-effective alternative to traditional jet fuels. Countries such as the EU, the UK and Singapore have already implemented SAF blending mandates, and Thailand is currently considering similar regulations.
Beyond climate benefits, SAF contributes to improving air quality. The low content of sulfur and aromatics helps reduce PM2.5 emissions and reduce the risk of acid rain.
Bangchak's SAF initiative is based on 20 years of experience in renewable energy. The journey began in 2000 with Biodiesel R&D working with Royal Thai Navy Dockyards, followed by the country's first commercial biodiesel launch in 2004.
Today, through the “Fry To Fly” campaign, Bangchak plans to collect used cooking oil at more than 290 service stations nationwide, expanding to 2,000 locations by the end of 2025. The company is also preparing to implement a book and billing system, allowing airlines and passengers to verify carbon credit claims for SAF users' use of SAFs.
The development positions Banchuk as a regional leader in clean aviation fuels, in line with the broader domestic and global carbon reduction targets.
