Cosmo Oil, Japan and Bangchak Group forge strategic partnership

Editorial Staff

Cosmo Oil, Japan and Bangchak Group forge strategic partnership for sustainable aviation fuel, leading the way in the Asia-Pacific region for a sustainable aerospace.
Japan’s Cosmo Oil Co based in Tokyo and Bangchak Corporation Plc (Bangchak) announced the formalization of a comprehensive agreement on the importation of sustainable aviation fuel (SAF) from Bangchak.

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 on 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.

Mr Pativat said the signing of the agreement for the import of SAF 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”.