Bangchak Strengthens SAF Feedstock Supply Through UCO Agreement
Bangchak Group announced on June 2 that it has signed a sales and purchase agreement with Circular Energy Co. Ltd., a company specializing in the collection and management of used cooking oil (UCO).
UCO is a critical feedstock for producing low-carbon fuels through the Hydroprocessed Esters and Fatty Acids (HEFA) pathway. These fuels include hydrotreated vegetable oil (HVO), sustainable aviation fuel (SAF), and bio-naphtha, all of which play an important role in reducing greenhouse gas emissions from transportation and aviation.
The agreement is expected to strengthen Bangchak’s access to high-quality and traceable UCO supplies at a time when global demand for sustainable feedstocks continues to rise. Competition for waste-based feedstocks has intensified as governments and industries accelerate efforts to decarbonize their energy systems.
Bangchak has already begun producing and marketing SAF from Thailand’s first dedicated SAF production unit. The company views feedstock security as a key factor in supporting future growth in renewable fuels and low-carbon products.
By partnering with Circular Energy, Bangchak aims to build a more reliable and sustainable supply chain while ensuring compliance with international sustainability standards. The company stated that it will continue developing traceable feedstock networks to support the expansion of clean energy solutions and contribute to Thailand’s long-term energy transition and carbon reduction goals.