Bangchak puts SAF return on investment at 5-7 years

Energy conglomerate Bangchak Corporation Plc expects it will be 5-7 years before it generates enough revenue to recoup its investment in sustainable aviation fuel (SAF), though some prospective customers have postponed plans to routinely require aircraft operators to use this biofuel.

- YUTHANA PRAIWAN

President Chaiwat Kovavisarach said he remains upbeat about the return on investment, even after reports that some countries in East Asia adjusted the timeline to enforce SAF usage.

The aviation industry is promoting mixing SAF with jet fuel because SAF produces up to 80% fewer greenhouse gas emissions than conventional fuel, according to media reports citing various forecasts.

Bangchak adjusted its estimated payback period to 5-7 years, extended from 3-5 years in a previous feasibility study, in response to changes in the SAF market.