In a landmark move towards advancing sustainable aviation solutions, Bangchak Corporation Public Company Limited (headquartered in Bangkok, Thailand, referred to as “Bangchak”) and Cosmo Oil Co., Ltd. (headquartered in Tokyo, Japan, referred to as “Cosmo Oil”), announced the formalization of a comprehensive frame agreement on 5 December 2023 at Cosmo Oil Headquarters in Tokyo, Japan. The agreement solidifies the importation of sustainable aviation fuel (SAF) from Bangchak to Cosmo Oil.
The signing ceremony, held with significant industry resonance, featured the pivotal signatures of Mr. Yasuhiro Suzuki, President of Cosmo Oil, and Mr. Pativat Tivasasit, Chief Operating Officer of the Refinery and Oil Trading Business Group of Bangchak Corporation on behalf of BCP Trading Pte. Ltd., a Bangchak Group affiliate.
This strategic partnership traces its roots back to 27 March 2023, when both companies inked a memorandum of understanding (MOU) focusing on joint studies in the realm of decarbonization. The joint study areas included the import and utilization of specific products by the Cosmo Group from Bangchak, covering SAF, bionaphtha, and bioethanol. Additionally, the collaboration delved into the utilization and transportation of low-carbon hydrogen, CCUS (Carbon Capture, Utilization, and Storage), and lubricant-related base oils.
Bangchak, a pioneer in Thailand’s sustainable aviation fuel business, 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 1,000,000 litres per day, derived 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.
Cosmo Oil, in pursuit of its 2030 annual supply target of 300,000 kiloLitres (kL) in its SAF business, views the collaboration with Bangchak as a strategic move to diversify its SAF procurement sources. This aligns with their broader goals of achieving net zero carbon emissions through a combination of in-house production and global collaborations.
Both companies express their commitment to continued exploration of joint study areas, leveraging their collective knowledge and technology. The shared vision involves sustained efforts towards global collaboration and multifaceted studies aimed at accelerating the crucial process of decarbonization.
Pativat stated that “The signing of the frame agreement for the import of Sustainable Aviation Fuel 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. For Bangchak, our strategic initiative to produce and supply SAF derived from used cooking oil exemplifies our commitment to innovative green energy practices as the daily production of 1 million liters of SAF will help drive overall reduction of approximately 80,000 tons of carbon dioxide emissions per year. This endeavor aligns with Bangchak Group’s commitment to achieving Carbon Neutrality by 2030 and Net Zero Greenhouse Gas Emissions by 2050”.
The ceremony which was joined by Bangchak Group and Cosmo Oil executives was honored by the presence of Mr. Chanthapat Panjamanond, Commercial Minister, Office of Commercial Affairs, Royal Thai Embassy Tokyo. Mr. Panjamanond gave a congratulatory speech praising this collaboration as an exemplification of the synergy and partnership that the Office of Commercial Affairs actively seeks to promote and that it served as a steppingstone towards the future where innovation and sustainability go hand in hand.