SAF Mandate Still Elusive
Despite ramping up production capabilities, Bangchak Corporation says there’s still no clarity on Thailand’s expected sustainable aviation fuel (SAF) mandate. At the APPEC conference in Singapore, Gloyta Nathalang, Senior Executive Vice President at Bangchak, described the company’s position as being “in limbo.” “We have some markets, some agreements,” she said, but stressed that no formal mandate has been issued yet, reported Reuters.
Production Capacity and Flexibility
Bangchak began SAF production earlier this year and currently operates with a capacity of 1 million litres (800 metric tonnes) per day. The SAF facility is presently in its “test run period” and is expected to be fully operational by early 2026. Nathalang added that the facility can pivot to producing renewable diesel if needed.
Mandate Delay and Internal Disagreement
Initially expecting a mandate by 2026, the company is now concerned as the deadline approaches without confirmation. Nathalang noted that uncertainty is partly due to disagreements among government ministries over which department should set the mandate.
Existing Partnerships
In the meantime, Bangchak has secured a SAF supply agreement with Shell Singapore’s trading arm, as noted on the company’s website
