Bangchak Corporation signs JV with Thanachok Oil Light for UCO-based SAF production
31/08/2022 (The Digest) - In Thailand, Bangchak Corporation Plc. and its affiliate BBGI Plc. along with Thanachok Oil Light Co., Ltd. signed a joint venture agreement to establish BSGF Company Limited with a THB 8,000-10,000 million (app. $220-$280 million) investment, with the investment proportion of 51% held by Bangchak, 29% by Thanachok Oil Light, and 20% by BBGI respectively. BSGF will be Thailand’s first and only producer and supplier of Sustainable Aviation Fuel (SAF) from used cooking oil.
This joint venture is the amalgamation of the experience and expertise of the three partners to lay a solid foundation for BSGF in terms of the procurement of raw materials, production, and distribution. It draws on the strengths of Bangchak as operator of world class complex refinery and a pioneer in buying used cooking oil for the production of biodiesel in Thailand, and its expertise in oil trading via BCP Trading Co., Ltd. or BCPT, its affiliate, the largest independent oil trader in the Singapore market, Thanachok Oil Light’s long experience in the procurement of used cooking oil, and BBGI’s leadership in biofuel industry and producer of high-value bio-based products.
BSGF will begin the construction of a production unit of SAF from used cooking within Bangchak Refinery, expected to be ready for commissioning by the end of 2024, with an initial daily capacity of 1,000,000 liters. SAF can immediately be used by the aviation industry around the world without affecting engine performance, and production from BSGF will help reduce the industry’s greenhouse gas emissions by approximately 80,000 tons carbon dioxide equivalent annually (compared to present emission levels).