Bangchak enters SAF supply agreement with Shell

Photo: Bangchak

Thailand-based Bangchak announced Nov. 12 that they have entered into a sustainable aviation fuel (SAF) supply agreement with Singapore-based Shell International Eastern Trading Co.

The agreement stipulates the offtake of ISCC EU/CORSIA-certified SAF to be delivered to Shell.

SAF is an alternative fuel to fossil-based jet that can help to significantly reduce emissions from flying.

It is a critical lever in meeting International Civil Aviation Organization’s net-zero carbon 2050 goal for international aviation. 

This collaboration and supply arrangement between Bangchak and Shell are further steps in advancing the use of SAF.

Bangchak, a leader in Thailand’s SAF industry, introduced its initial SAF manufacturing business plan in September 2022.

The company is moving forward with the construction of a production facility in Bangkok, which will have a capacity of 1 million liters per day of SAF production, utilizing used cooking oil as its primary feedstock.

Commercial operations are expected to begin in the second quarter of 2025.

“This agreement reinforces Bangchak’s strategic vision to lead the way in sustainable-energy innovation,” said Chaiwat Kovavisarach, Bangchak’s president and CEO. “Working with a trusted partner like Shell allows us to expand our footprint in delivering cleaner aviation fuels to the market. This partnership is an essential step in achieving our goal of net-zero greenhouse-gas emissions by 2050 as we continue to pioneer sustainable-energy solutions that support a low-carbon future.”

Tan Chee Chung, the president of Shell International Eastern Trading, said, “Shell and Bangchak have a long-established and close collaboration in Thailand, and I am very happy to see the relationship grow.”

This agreement underscores the shared commitment of both Bangchak and Shell to advancing the sustainability of the aviation industry.

By leveraging their combined expertise and resources, the collaboration aims to meet the increasing demand for SAF and contribute towards supporting a lower-carbon future.