Mitihoon – Bangchak Group Accelerates the Development of a Circular Supply Chain for SAF Transforming Used Cooking Oil into the Aviation Fuel of the Future
Mr. Bundit Hansapaiboon, President, Refinery and Marketing Business Group, Bangchak Corporation Public Company Limited, shared Bangchak Group’s approach to logistics and supply chain management for Sustainable Aviation Fuel (SAF) production at Circular Logistics for Future Energy: Decoding Logistics and Clean Energy for Sustainable Business.
The session was part of an industrial logistics and supply chain development program supporting the transition to a circular economy. Organized by the Logistics Division of Thailand’s Department of Industrial Promotion, the event was held at Graph Hotel Ratchadaphisek in Bangkok.
His presentation focused on how Bangchak Group is building an integrated, circular value chain around its SAF production unit, which has a capacity of 1 million liters per day. The facility uses used cooking oil (UCO) as its primary feedstock to produce SAF through the Hydroprocessed Esters and Fatty Acids–Synthetic Paraffinic Kerosene (HEFA-SPK) pathway, along with renewable diesel, bio-LPG and bionaphtha as co-products.
By converting used cooking oil into higher-value energy products, Bangchak Group is responding to growing global demand while positioning Thailand within the emerging value chain for lower-carbon aviation fuels. Thailand’s feedstock potential, combined with collaboration among consumers, businesses and the aviation sector, can support the decarbonization of air travel and contribute to the global goal of achieving net-zero emissions by 2050.
For Bangchak Group, SAF is more than a new energy product. The aim is to connect the entire value chain from sourcing and collection to transportation, quality control and final delivery—through a system that provides traceability, quality assurance, transparent monitoring and payment processes.
Existing refinery, terminal and logistics infrastructure will also play an important role. SAF can be transported by pipeline from Bangchak Refinery and fuel terminals in Bangkok to Suvarnabhumi and Don Mueang airports, while road tankers can serve other parts of the country. This integrated distribution system will help establish market confidence and support compliance with SAF sustainability standards.
Bangchak Group is also developing partnerships to serve both domestic and international markets. It has signed a memorandum of cooperation with the Civil Aviation Authority of Thailand and eight Thai airlines to support the adoption of SAF in Thailand.
Securing a sufficient and sustainable supply of feedstock remains one of the most important challenges. Although Thailand has significant UCO potential, only an estimated 13–15% of the available volume is currently collected.
Bangchak Group is addressing this gap through its Fry to Fly and No Refry initiatives, which expand the purchase and collection of used cooking oil from households, restaurants, communities and businesses. The programs create additional income for participants, raise awareness of greenhouse gas emissions reduction and prevent used cooking oil from re-entering the food chain. They also show how waste can be brought back into the economy as a valuable resource. Beyond used cooking oil, Bangchak Group is exploring alternative feedstocks under its Farm to Fly initiative. Research includes pongamia, a non-food oil crop that could help reduce competition with the food supply chain and provide greater feedstock flexibility in the future.
Market conditions are also moving in SAF’s favor as the aviation industry works to reduce carbon emissions in line with the International Civil Aviation Organization’s direction. Global SAF demand could grow approximately elevenfold over the next decade. Adoption in Asia is expected to rise significantly after 2030, driven by emissions reduction targets and SAF blending mandates in several countries.
Bangchak Group’s SAF program reflects its transition from a conventional energy business to one that creates value from the energy solutions of the future. Its ambition extends beyond producing SAF to building the ecosystem and integrated circular supply chain needed to secure feedstock, support long-term market growth and contribute to the Group’s net-zero target by 2050 under its vision of “Crafting a Sustainable World with Evolving Greenovation.”
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