DIPROM collaborates with Bangchak and five major industry leaders to strengthen cooperation and establish a nationwide used cooking oil management network, promoting SAF production in line with the Bio-Circular-Green (BCG) Economy model to address the climate crisis.
Mr. Akanat Promphan, Minister of Industry, is advancing Thailand's new economic engines by assigning the Department of Industrial Promotion (DIPROM) to collaborate with Bangchak Corporation Public Company Limited and five leading business organizations to accelerate the promotion of Sustainable Aviation Fuel (SAF) production. This initiative is driven through a Memorandum of Understanding (MoU) titled "Management of Used Cooking Oil for the Production of Sustainable Aviation Fuel in line with the Bio-Circular-Green Economy policy."
The aim is to establish a collaborative supply chain network for used cooking oil (UCO) as a key feedstock for commercial-scale SAF production. This partnership seeks to reduce carbon dioxide emissions, move toward carbon neutrality and net-zero greenhouse gas emissions, and elevate Thailand's aviation industry to internationally recognized standards.
Mr. Akanat Promphan, Minister of Industry, stated that Bangchak had initiated discussions with the Ministry of Industry on potential collaboration to collect used cooking oil from the industrial sector for the production of Sustainable Aviation Fuel (SAF). The Ministry recognized the importance of this initiative and found it aligned with the policy direction of Prime Minister Paetongtarn Shinawatra, who aims to enhance Thailand's global competitiveness and reposition the country as a key economic player on the world stage. This also supports Thailand's ambition to become the aviation hub of the region, creating advantages for domestic producers and service providers while opening new gateways to global trade. As Minister of Industry, Mr. Akanat underscored his commitment to driving the "Fighting, Saving, Creating" policy through industrial reform focused on three key areas: overhauling the management of industrial waste and hazardous materials that impact public health, strengthening fair competition for Thai industries - especially SMEs, and developing new, environmentally friendly industries to move the country toward carbon neutrality. This collaboration between the Ministry of Industry, through the Department of Industrial Promotion, and Bangchak Corporation, along with five leading private sector partners, marks the beginning of a comprehensive public-private integration that will benefit the nation across all dimensions.
Dr. Nattapol Rangsitpol, Permanent Secretary of the Ministry of Industry, stated that the Ministry has developed a framework to promote the production of Sustainable Aviation Fuel (SAF), along with studying potential feedstocks, particularly used cooking oil (UCO), in alignment with Thailand's national fuel management plan. The Ministry is also moving forward in building a collaborative network among industry players while supporting the development of an effective UCO supply chain to serve as a key feedstock for SAF production.
The Memorandum of Understanding was signed between the Ministry of Industry, through the Department of Industrial Promotion, and Bangchak Corporation Public Company Limited, along with key private sector partners that utilize used cooking oil?namely Central Group, Thai Beverage Public Company Limited, Charoen Pokphand Foods Public Company Limited, Thai President Foods Public Company Limited, and the Thai Food Processors Association. The partnership aims to establish and promote a supply chain network for UCO sourced from both industrial and service sectors, to be used as feedstock for commercial-scale SAF production. This effort supports the development of Thailand's aviation industry to meet international standards while reducing environmental impacts from air transport, optimizing resource use, and creating added value from waste materials in alignment with the Bio-Circular-Green (BCG) Economy policy.
Ms. Natthinya Netyasupha, Director-General of the Department of Industrial Promotion (DIPROM), added that DIPROM has collaborated with internal agencies under the Ministry of Industry to analyze data on SAF demand, production capacity, and potential domestic feedstock supply?such as used cooking oil (UCO), refined palm oil, and sugarcane by-products like molasses. The goal is to identify practical approaches for developing an industrial ecosystem that will effectively support SAF production from locally sourced materials. In the initial phase of the collaboration under this MoU, the focus will be on promoting and supporting the establishment of supply chain mechanisms for UCO collection from both industrial and service sectors. This includes public awareness campaigns, education initiatives, and network-building efforts to enhance understanding and engagement throughout the UCO supply chain, ultimately transforming waste into value-added SAF in line with the BCG model. This initiative also serves as a role model for other sectors, especially households, encouraging proper and safe UCO disposal and utilization. It not only strengthens energy and economic security in Thailand's aviation logistics industry but also contributes to long-term social and environmental sustainability.
Mr. Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation Public Company Limited, stated that Bangchak Group has embraced the government's BCG (Bio-Circular-Green) Economy policy and is pleased to see strong support from government agencies and business partners in advancing the production of Sustainable Aviation Fuel (SAF) - a key solution to reducing carbon emissions from the aviation industry. With readiness as a pioneer in the production of 100% Neat SAF in Thailand, the Group can produce 1 million liters per day under the globally recognized International Sustainability and Carbon Certification (ISCC) system, covering the entire value chain from feedstock sourcing and production to distribution. Nevertheless, two critical issues require urgent attention from policy makers; (1) enhancing the diversity of feedstocks available for SAF production, and (2) establishing a clear national mandate to accelerate domestic adoption of SAF. A potential path forward includes setting a minimum SAF blending requirement in aviation, complemented by appropriate incentives and support measures. Such efforts would help build confidence among stakeholders, encourage long-term investment in the SAF ecosystem, and ultimately enhance Thailand's position as a future regional hub for clean energy.