Bangchak announces 10 billion Baht investment plans to make aviation fuel from used cooking oil

[webfact]

 

By Thanaphum Charoensombatpanich

Bangckak Corporation Plc (BCP) said that it and its affiliate BBGI Plc along with Thanachok Oil Light Co., Ltd. signed a joint venture agreement to establish BSGF Company Limited to produce what it calls as ‘Sustainable Aviation Fuel made from used cooking oil.

 

BCP said that this venture would be the only such venture to produce sustainable aviation fuel in Thailand and the venture would see an investment of 8-10 billion Baht, with BCP holding 51% stake, Thanachok Oil Light holding 29%, and BBGI holding 20% of the venture.

 

Chaiwat Kovavisarach, Group Chief Executive Officer and President of BCP said that the venture should be operational as early as Q4 2024. The venture, he said was the amalgamation of the experience and expertise of the three partners to lay a solid foundation for BSGF in terms of the procurement of raw materials, production, and distribution.

 

Full story: https://www.thaienquirer.com/43602/bangchak-announces-10-billion-baht-investment-plans-to-make-aviation-fuel-from-used-cooking-oil/

 

-- © Copyright Thai Enquirer 2022-09-01

 

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[2baht]

 

4 minutes ago, webfact said:

‘Sustainable Aviation Fuel made from used cooking oil.

I'll definitely be steering clear of Thai Airways!

[JoePai]

Don't knock it - the smell of bacon and eggs instead of avgas when a plane takes off ????

[KannikaP]

So how many times can a street food kiosk use the oil before they take it for planes?

[RandolphGB]

There’s very little chance of them being able to produce this alternative fuel cheaper than the traditional jet fuel. 
 

[foreverlomsak]

is it frying or flying tonight

[Excel]

28 minutes ago, RandolphGB said:

There’s very little chance of them being able to produce this alternative fuel cheaper than the traditional jet fuel. 
 

So how do you come to that conclusion ? I find that statement quite strange and look forward to seeing your projected production cost analysis.

 

The main points in favour of this project are that the refining process at the refinery will have known or projected fixed costs after the capital investment already. The feed stock is obtained from within Thailand from an already in place used cooking oil collection system so costs for this are a known factor.  Whereas traditional jet fuel production is subject to global price pressures.

 

One other factor worthy of note is that the initial projected output is 1 million litres per day, which equates to around 6290 barrels of oil whereas Thailand's jet fuel production runs at the rate of approximately 63,000 barrels per day, of which over 15% ish is exported. So if the home market could produce an alternative jet fuel at even the same production cost as traditional fuels, than the opportunity to export up to 25% of the traditional fuels at international  prices which would be of an increased economic significance for Thailand.

Edited September 1, 2022 by Excel

[DezLez]

Thai Airways new slogan "Come Fry with me"!

[peterfranks]

11 minutes ago, Excel said:

The feed stock is obtained from within Thailand from an already in place used cooking oil collection system so costs for this are a known factor.

I only wonder how they from 17 million liter per month of used oil, gonna make 1 million liter jet fuel per day

 

The demands can be met easily because Thanachok Group has a used cooking oil collection network covering 77 provinces across the country, able to collect approximated 17 million liters monthly.

 

Another thing I don't understand, is how it will lower greenhouse gases, as they will still burn as much jet fuel as ever before

[owl sees all]

I think they are getting confused. The best use of old cooking oil is the two stroke diesels in big boats.

 

In the UK 'Av Cat one' is a highly refined petrol.

 

[Excel]

1 minute ago, peterfranks said:

Another thing I don't understand, is how it will lower greenhouse gases, as they will still burn as much jet fuel as ever before

The EU has similar incentives to produce alternative sources of jet fuels. Anything to do with claims that it will lower greenhouse gases , IMHO is just PR BS for the masses. Look at the logic here in Thailand. Currently 77 million litres are collected monthly. Until now that has not been a high profit business stream so it is unlikely that the method of collection would involve high efficiency modern road tankers perhaps. Of course I could be wrong but I suspect that in order to get the cheapest price they would be using companies that are operating old diesel belching trucks. That put's paid to the greenhouse gas emissions argument straight away.

[herfiehandbag]

You used to be able ( in the UK) to get kits to refine old cooking oil to use instead of diesel. 

 

Given the howls of anguish about diesel prices it seems a cheaper way of reusing the stuff.

 

I would be a bit wary of flying in an airliner powered by the stuff.

[lujanit]

Rudolph Diesel first ran his engine on peanut oil.  I know a diesel engine is not a jet engine.  There must be a way of refining used cooking oil to something akin to aviation fuel.

[khunPer]

5 hours ago, 2baht said:

 

I'll definitely be steering clear of Thai Airways!

It's actually been well tested, Finair has been flying on it to US, so you better stay away from Finair also...

Recycled cooking oil powers Finnair flight to New York.

 

Finnair to Switch to Renewable Fuels.

 

Norwegian use 50 percent blend and SAS 10 percent...

 

Norwegians første flyvning med biobrændstof er lettet (in Danish language, but you can use the browser's translate to English option). 

[wombat]

5 hours ago, peterfranks said:

greenhouse gases,

didn't they escape into space from the hole in the ozone layer?

[Aussieroaming]

Flying on a "chicken" wing and a prayer.

[KingofPattaya]

this is a great idea if they can really do it!

[mrfill]

4 hours ago, herfiehandbag said:

You used to be able ( in the UK) to get kits to refine old cooking oil to use instead of diesel. 

 

Given the howls of anguish about diesel prices it seems a cheaper way of reusing the stuff.

 

I would be a bit wary of flying in an airliner powered by the stuff.

You can still produce diesel from used cooking oil. Its not difficult. However, the limitation is the vehicle engine.

Modern high pressure injection diesels cannot use this as it gums up the works. If you have something like an early 1990s car with a low pressure injection system, no problem.

The biggest problem is the lack of base material (the used cooking oil).

[peterfranks]

12 minutes ago, userabcd said:

They mention it only as a sustainable source of aviation fuel to meet international norms of mixing normal and alternative sources of aviation fuels.

 

Nothing in it is about lowering greenhouse gas emissions.

Maybe we read a different article then.

 

“BSGF is prepared to increase its capacity to address future sustainable aviation fuel demand according to global sustainable aviation fuel trends, aligned with European Union requiring progressive mixtures of sustainable aviation fuel in aviation fuel for flights entering European Union countries,” Chaiwat said.

 

EU has put in place that sustainable aviation fuel should account for 2% of fuel to be used by 2025 and 6% by 2030 to 37% by 2040 and 85% by 2050.

Sustainable aviation fuel can immediately be used by the aviation industry around the world without affecting engine performance, and production from BSGF will help reduce the industry’s greenhouse gas emissions by approximately 80,000 tons carbon dioxide equivalent annually (compared to present emission levels).

[userabcd]

9 minutes ago, peterfranks said:

Maybe we read a different article then.

 

“BSGF is prepared to increase its capacity to address future sustainable aviation fuel demand according to global sustainable aviation fuel trends, aligned with European Union requiring progressive mixtures of sustainable aviation fuel in aviation fuel for flights entering European Union countries,” Chaiwat said.

 

EU has put in place that sustainable aviation fuel should account for 2% of fuel to be used by 2025 and 6% by 2030 to 37% by 2040 and 85% by 2050.

Sustainable aviation fuel can immediately be used by the aviation industry around the world without affecting engine performance, and production from BSGF will help reduce the industry’s greenhouse gas emissions by approximately 80,000 tons carbon dioxide equivalent annually (compared to present emission levels).

You are right, sorry.

 

The linked article took a long time to load on my pc and it seems I missed that part..

[zzaa09]

Wondering where this B10 mil is really going.....

[Grumpy one]

8 hours ago, foreverlomsak said:

is it frying or flying tonight

Both

A bit of flying until the fuel lines clog up

Then its a lot of burning when the plane crashes

[xtrnuno41]

Well guess they did the math right and it would be economical worthy.

As that is the only point for reusing materials, not for environment or anything else, just simple, money.

I red the fist article of Khunper, about Fin air, but they did in 2011 and costed twice as much as standard jet fuel, but ok it can be done. Maybe now worthwhile. 

 

This morning i red Qatar is investing in 1,2 billion $ factory to make "blue ammonia".

Also some kind of fuel, dont know yet what it contains. But see here:

https://www.arabnews.com/node/2153901/business-economy

 

Also a SHELL (and maybe others) has plans to create fuel from CO2 and H2.

Dont know if that one will pop up here, as they need "clean" H2 and government and SHELL were hassling about the H2 installation to be built. Shortly after that SHELL moved head quarters to UK. OK, again money.

 

I still would say, reducing number of humans on this world would also be effective.

Maybe they are working on that as well, considering increase of viruses like SARS, MERS, Covid. As you cant say, people stop making babies.

The worlds economic system is a "Ponzi sceme" and at one point it will hold. 

 

 

[DezLez]

17 minutes ago, Grumpy one said:

Both

A bit of flying until the fuel lines clog up

Then its a lot of burning when the plane crashes

You will have had your chips, soggy or well fried, either way in that case!

 

PS; sorry to our US friends who will not necessarily get that!

[kevc]

What are the fried chicken sellers going to cook with.

[PETERTHEEATER]

The article states 'Aviation fuel' it does not mention 'jet' fuel for aviation turbine engines. Most commercial passenger aircraft have engines which run on Aviation Turbine Fuel often referred to as AVTUR the commercial grade being JET A1, Cooking oil can certainly be converted into a fuel for diesel engines. Many newer build light aircraft are fitted with diesel engines which run on JET A1 because it is cheaper than Aviation Gasoline 100 octate LL (Low Lead). I think that it is practicable to blend a percentage of 'cooking oil fuel' with AVTUR to make a safe acceptable mix for commercial use.

[overherebc]

19 minutes ago, PETERTHEEATER said:

The article states 'Aviation fuel' it does not mention 'jet' fuel for aviation turbine engines. Most commercial passenger aircraft have engines which run on Aviation Turbine Fuel often referred to as AVTUR the commercial grade being JET A1, Cooking oil can certainly be converted into a fuel for diesel engines. Many newer build light aircraft are fitted with diesel engines which run on JET A1 because it is cheaper than Aviation Gasoline 100 octate LL (Low Lead). I think that it is practicable to blend a percentage of 'cooking oil fuel' with AVTUR to make a safe acceptable mix for commercial use.

Boeing did a test flight with an A380 for 3 hours running one engine on fuel made from cooking oil.

[hotchilli]

22 hours ago, webfact said:

Chaiwat Kovavisarach, Group Chief Executive Officer and President of BCP said that the venture should be operational as early as Q4 2024. The venture, he said was the amalgamation of the experience and expertise of the three partners to lay a solid foundation for BSGF in terms of the procurement of raw materials, production, and distribution.

If it keeps it out of the drains then best of luck.

[jacko45k]

21 hours ago, herfiehandbag said:

I would be a bit wary of flying in an airliner powered by the stuff.

There have been instances of watered down fuel being provided at some airports. 

[Callmeishmael]

The technology to do this has been around for decades, it is just a matter of waiting until the cost of conventional fuel rose to the point where making this alternative fuel became economical.  I guess that the Ukraine/Russian war is now projected to last long enough to keep regular oil prices high for the next year or two.

 

As for the eco/greenhouse gas side of things, cooking oil is made from plants, which extract CO2 from the air.  So when you burn refined cooking oil you are just returning CO2 to the air that was removed from the air a year or two previously, thus there is a net zero effect on the amount of CO2 in the atmosphere.  Burning fossil fuels, however, returns CO2 that was sequestered deep inside the Earth for hundreds of millions of years into the atmosphere.