Bangchak, Sumitomo join forces to develop UCO-SAF supply chain


Thai energy firm Bangchak Corporation and Japan’s Sumitomo Corporation signed a strategic agreement to for the purchase and sale of used cooking oil (UCO) and neat sustainable aviation fuel (SAF).

The agreement establishes a framework for the purchase and sale of UCO, a key feedstock for SAF production. The UCO will be utilised at SAF production facility currently under construction at the Bangchak Phra Khanong Refinery in Bangkok.

This plant, expected to be operational in early 2025, boasts a projected daily production capacity of approximately 1m liters.

“This agreement signifies a significant milestone in our joint efforts to propel decarbonisation initiatives,” said Thamarat Paryoonsuk, senior executive vice president of refinery and oil trading business group, Bangchak. “Through this collaboration, Bangchak and Sumitomo aim to generate shared value while championing ambitious sustainability goals.”

This partnership aligns with Bangchak’s vision of achieving carbon neutrality by 2030 and net-zero greenhouse gas emissions by 2050.

Earlier this year, Bangchak Corporation commemorated the laying of the Foundation Stone for Thailand’s First SAF Production Plant.

Scheduled to commence operations in the first quarter of 2025, the facility will help Bangchak in the local as well regional SAF market.

The SAF production unit at Bangchak Phra Khanong Refinery will comprise two main units: the Pretreating Unit (PTU) and the SAF Unit, both incorporating technologies from world renowned technology providers.