Bangchak’s SAF Plant Reaches Full Capacity, Targeting European Markets

Thailand’s Bangchak Corporation has announced that its sustainable aviation fuel (SAF) production facility, operated by its joint venture BSGF, is now running at full capacity, marking a significant step in the country’s development of low-carbon aviation fuels.

Located at Bangchak’s Phra Khanong refinery in Bangkok, the facility uses Hydroprocessed Esters and Fatty Acids (HEFA) technology and has a designed production capacity of 1 million liters per day. The plant began operations in early 2026, with most of its SAF production currently supplied to European markets, where increasingly stringent aviation emissions regulations are driving demand for sustainable fuels.

Bangchak executive Ongorn Pleanrungsi called on governments to establish clear SAF blending targets and long-term development roadmaps. Such policies would provide greater certainty for producers and airlines, encouraging long-term offtake agreements and investment.

However, SAF remains significantly more expensive than conventional jet fuel, costing approximately two to three times as much. Feedstocks account for 70%–80% of total production costs, making carbon pricing, government subsidies and green financing important tools for improving competitiveness.

To secure feedstock supplies, Bangchak operates its “Fry to Fly” initiative, collecting used cooking oil through partnerships with government agencies, schools, households and service stations. The company is also exploring certified sustainable palm oil, palm fatty acid distillate (PFAD) and palm oil mill effluent-derived feedstocks, while strengthening traceability and sustainability management.

Bangchak plans to adjust its SAF and hydrotreated vegetable oil (HVO) production mix according to market demand, supporting the long-term expansion of its renewable fuels business.