Japan’s Cosmo Oil signs SAF offtake agreement with Bangchak Group
Japan’s Cosmo Oil has signed an 10-year agreement with Thailand’s Bangchak Corporation to purchase sustainable aviation fuel (SAF).
Earlier in March 2023, the two firms signed an agreement for joint studies on decarbonisation including SAF, bionaphtha and bioethanol. The two firms also agreed to collaborate on utilizing and transporting low-carbon hydrogen, CCUS (Carbon Capture, Utilization, and Storage), and lubricant-related base oils.
Bangchak unveiled its first SAF manufacturing business plan in September 2022.
The company is set to construct an SAF manufacturing plant at Bangchak Pra Khanong Refinery in Bangkok with a production capacity of 1m litres per day from used cooking oil.
Commercial operations are anticipated to commence around the end of 2024, with a significant portion of the SAF production slated for a 10-year import agreement with Cosmo Oil.
“The signing of the frame agreement for the import of SAF represents a substantial step in Bangchak and Cosmo Group committed and mutual collaboration, building upon the close partnership that both have cultivated for over a decade. The agreement is a tangible result of joint dedication to a future of cleaner energy … This endeavour aligns with Bangchak Group’s commitment to achieving Carbon Neutrality by 2030 and Net Zero Greenhouse Gas Emissions by 2050,” said Pativat Tivasasit, Chief Operating Officer, Bangchak Corporation.