Thailand's Bangchak Corporation has entered into a significant agreement with Circular Energy for the supply of used cooking oil (UCO). This UCO will be utilized as a crucial feedstock in Bangchak's manufacturing processes for hydrotreated vegetable oil (HVO), sustainable aviation fuel (SAF), and bio-naphtha. The announcement, made on June 2, confirms Bangchak's commitment to expanding its renewable fuel output.
In parallel with this new feedstock agreement, Bangchak Group has also initiated the production of sustainable aviation fuel at its Phra Khanong Refinery. This development marks a tangible step towards increasing the availability of lower-carbon fuel options in the region.
For freight forwarders and shippers, the increased production of SAF and HVO by Bangchak could contribute to the broader availability of sustainable fuel options, particularly for air cargo and potentially for maritime bunkering in the future. While the immediate impact on global rates might be limited, a growing supply of these fuels supports decarbonization efforts and could influence carrier choices and green logistics strategies over time, especially as demand for sustainable supply chains increases.
