Energy conglomerate Bangchak Corporation believes its plan to produce biofuel for aircraft -- known as sustainable aviation fuel (SAF) -- will be able to deal with any uncertainty in the future if the company's oil refinery business is disrupted by electric vehicles. More widespread use of eco-friendly cars, which are being promoted by governments as part of the campaign to reduce carbon dioxide emissions, may affect the manufacturers of internal combustion engine-based cars and oil sellers. Analysts have suggested oil refinery operators diversify into petrochemicals, but from Bangchak's perspective, its plan to venture into the SAF business will provide a promising source of future revenue. The company is developing a 10-billion-baht SAF production facility adjacent to its oil refinery in Bangkok's Phra Khanong district, said Chaiwat Kovavisarach, president and chief executive of Bangchak. Construction of Thailand's first SAF production plant is expected to be completed before the end of 2024. The factory, with a production capacity of 1 million litres a day, is scheduled to commence commercial operations in 2025.
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