Thai Conglomerates Tap Used Cooking Oil for Rising SAF Demand

Thai conglomerates CP Axtra Public Company Limited (SET: CPAXT) and Global Green Chemical Public Company Limited (SET: GGC) have formed a strategic partnership to produce Sustainable Aviation Fuel (SAF). Under their Memorandum of Understanding (MOU), they will transform used cooking oil from CPAXT's retail network into high-value products, including SAF, bioplastics, and biochemicals.

The joint project aims to collect 300,000 liters of used cooking oil per year from Makro and Lotus's branches. GGC will refine the waste oil for use as feedstock in producing SAF, which is becoming increasingly essential due to tightening global aviation regulations.

The European Union's 'ReFuelEU Aviation' regulations require flights departing EU airports to utilize fuel blended with a minimum of 2% SAF by January 1, 2025. This mandate will escalate to 6% by 2030, 20% by 2035, and 70% by 2050, driving the need for reliable supply chains.