Bangchak Corporation Public Company Limited (Bangchak) has announced that they have entered into a sustainable aviation fuel (SAF) supply agreement with Singapore-based Shell International Eastern Trading Company (Shell). The agreement stipulates the offtake of ISCC EU/CORSIA certified SAF to be delivered to Shell.
SAF is an alternative fuel to fossil-based jet that can help to significantly reduce emissions from flying. It is a critical lever1 in meeting International Civil Aviation Organization's (ICAO) net-zero carbon 2050 goal for international aviation.2 This collaboration and supply arrangement between Bangchak and Shell are further steps in advancing the use of sustainable aviation fuel.
Bangchak, a leader in Thailand's sustainable aviation fuel industry, introduced its initial SAF manufacturing business plan in September 2022. The company is moving forward with the construction of a SAF production facility in Bangkok, which will have a capacity of 1,000,000 liters per day, utilizing used cooking oil as its primary feedstock. Commercial operations are expected to begin in the second quarter of 2025.
Mr. Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Plc., said "This agreement reinforces Bangchak's strategic vision to lead the way in sustainable energy innovation. Working with a trusted partner like Shell allows us to expand our footprint in delivering cleaner aviation fuels to the market. This partnership is an essential step in achieving our goal of net-zero greenhouse gas emissions by 2050, as we continue to pioneer sustainable energy solutions that support a low-carbon future."
Mr. Tan Chee Chung, President, Shell International Eastern Trading Company (Shell) said, "Shell and Bangchak have a long-established and close collaboration in Thailand, and I am very happy to see the relationship grow."
This agreement underscores the shared commitment of both Bangchak and Shell to advancing the sustainability of the aviation industry. By leveraging their combined expertise and resources, the collaboration aims to meet the increasing demand for sustainable aviation fuels and contribute towards supporting a lower carbon future.