Sustainable Aviation Fuel & Bio-Fuels

The Federation of Thai Industries, or FTI, has proposed to the Minister of Energy, Ekkanat Promphan, that ethanol be elevated from merely a blending component in fuel to a national strategic fuel, in order to cope with volatility in global energy prices, build energy security, and reduce oil imports. Mongkol Hengrojanasophon, chairman of the FTI's Energy Institute for Industry, said the proposal has three main approaches. The first is to set a long-term direction for gasohol E20 as the primary gasoline fuel for vehicles that can support it, starting with price mechanisms to incentivize consumers before developing cost structures across the entire supply chain to be competitive and reduce reliance on subsidy measures. The second is to study a system for using ethanol in flexible proportions, or E-Flex, alongside promoting domestically produced HEV-Flex hybrid vehicles and mHEV mild hybrid vehicles to support fuels with higher ethanol content. The third is to draw up a plan to raise the competitiveness of the biofuel supply chain, covering increased yields of sugarcane and cassava per rai, lower harvesting and transport costs, improved plant efficiency, and the development of sustainability standards and traceability systems, along with setting indicators such as yield per rai, raw material cost per liter of ethanol, production efficiency, and carbon emission intensity throughout the chain. The FTI therefore proposes formulating a national ethanol and biofuel strategy with clear long-term goals and action plans, and confirms the industry sector's readiness to help drive these approaches forward.

Cosmo Oil announced on the 17th that it will begin utilizing naphtha co-produced in the SAF manufacturing process together with Maruzen Petrochemical, Ube-Maruzen Polyethylene, and SAFFAIRE SKY ENERGY. At the SAF production facility within Cosmo Oil's Sakai Refinery, naphtha obtained during the production of SAF from waste cooking oil will be utilized as a raw material for chemicals. SAFFAIRE SKY ENERGY will produce the naphtha, Cosmo Oil will supply it, Maruzen Petrochemical will produce basic chemicals, and Ube-Maruzen Polyethylene will produce polyethylene for development into plastic products. The four companies plan to expand supply volumes and develop applications going forward, aiming to contribute to decarbonization in the chemical, textile, and packaging sectors.

Praj Industries and Gevo, Inc. announced the signing of a Development & Commercialization Agreement for Bio-Isobutanol technology in India, with Praj holding exclusive rights to deploy the technology in the country. The partnership will focus on developing commercial opportunities for Bio-IBA, primarily for diesel blending applications aimed at reducing the carbon intensity of one of the world's most widely used transportation and industrial fuels. The agreement builds on more than a decade of collaboration between the two companies to adapt and advance Bio-IBA technology for Indian feedstocks and market requirements. In a separate but aligned development, Praj is currently establishing India's first commercial Bio-IBA demonstration plant for a leading Oil Marketing Company, designed, engineered, supplied and erected by Praj based on Gevo's licensed Bio-IBA technology. According to Petroleum Planning & Analysis Cell, India consumed approximately 94.7 million tonnes, or 29.7 billion US gallons, of high-speed diesel in FY2025-26. Gevo Chief Executive Officer Paul Bloom called the agreement an important milestone, while Praj Founder Chairman Dr. Pramod Chaudhari said it establishes a strong foundation for bringing Bio-IBA to the Indian market.

OMV Petrom has expanded its planned green hydrogen production capacity at Romania's Petrobrazi refinery to 55 megawatts following the delivery of a second 35-MW electrolyzer. The new system, consisting of seven 5-MW electrolysis modules supplied by Germany's Neuman & Esser, will combine with a previously delivered 20-MW electrolyzer to produce around 8,000 tonnes of green hydrogen annually using renewable electricity. The hydrogen will primarily support OMV Petrom's new sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO) plant, currently under construction at Petrobrazi. The 35-MW electrolyzer alone is expected to produce around 4,700 tonnes of hydrogen annually and has received approximately €29 million in financing through Romania's National Recovery and Resilience Plan. These hydrogen projects are part of a broader €750 million investment in sustainable fuels at Petrobrazi, which includes €560 million for the SAF/HVO plant and €190 million for the two green hydrogen facilities. The new plant will have capacity to produce 250,000 tonnes of sustainable fuels annually, with production scheduled to begin in 2028. OMV Petrom has already secured buyers for part of that output, including a five-year agreement with parent company OMV covering up to 360,000 tonnes of SAF and HVO beginning in 2028, with an estimated value exceeding €800 million at recent market prices. More than 80% of the plant's feedstock requirements for its first eight years have also been secured. Petrobrazi currently supplies roughly 35% of Romania's fuel demand and has an annual refining capacity of 4.5 million tonnes.

KBR has been selected by the Live Oak consortium to provide front-end engineering design services for a proposed large-scale electric natural gas project in Norfolk, Nebraska. The consortium includes TotalEnergies, Osaka Gas, Toho Gas, ITOCHU Corporation, and Tree Energy Solutions. Subject to a final investment decision in 2027, the project is expected to begin commercial operations by 2030, with plans to export e-NG to Japan. The facility will produce e-NG using renewable hydrogen from approximately 250 megawatts of water electrolysis and biogenic carbon dioxide, creating synthetic methane that can be integrated into existing LNG infrastructure without modifications. KBR's president of Sustainable Technology Solutions, Jay Ibrahim, highlighted the company's expertise in hydrogen and electrolysis technologies and its track record with TotalEnergies, noting this is one of the largest e-methane projects under development in North America.

Global Green Chemicals Public Company Limited (GGC) and CP Axtra Public Company Limited (CPAXT) have signed a memorandum of understanding for strategic cooperation to study the feasibility of collecting and managing used cooking oil (UCO), with the goal of improving the quality of used oil and developing it into value-added products under the concept of turning waste into opportunity, while supporting the transition to a low-carbon economy. This cooperation aims to apply the circular economy concept to reduce waste and increase the value of raw materials. Witnesses to the signing included Mr. Adisak Chusuk, Deputy Director-General of the Department of Alternative Energy Development and Efficiency; Mr. Phakphong Wangrattanasophon, Chief Operating Officer of the Basic and Intermediate Chemicals Business Group of GC; and Lieutenant General Thitawat Sathienthip, Director of GGC, at the Lotus headquarters.

BBGI shares rose more than 5% after KGI Securities Thailand raised its target price and maintained a buy rating. The broker said second-quarter 2026 net profit came in at 485 million baht, swinging from a net loss of 40 million baht in the second quarter of 2025 and beating its estimate by 37%, thanks to a higher-than-expected gross margin and a significant increase in profit contributions from associates. The key driver was the start of commercial operations at the SAF plant, in which BBGI holds a 20% stake. KGI therefore lifted its 2026 net profit forecast by 52% to 1.5 billion baht and raised its target price to 7.50 baht from 7.00 baht, while keeping a buy call and naming the stock a top pick in the energy sector.

Minister of Industry Varawut Silpa-archa and his delegation visited the Nakhon Sawan Biocomplex project of Global Green Chemicals Public Company Limited, or GGC, to hear progress updates and tour the plants of NatureWorks and GKBI. The Nakhon Sawan Biocomplex is operated by GGC KTIS Bio Industrial Company Limited, or GKBI, a joint venture between GGC and Kaset Thai International Sugar Corporation Public Company Limited, or KTIS, linking agricultural raw materials with the bioethanol, renewable energy, and bioplastics industries in a fully integrated manner. The project is divided into two phases, both of which are already in commercial operation. Phase 1 comprises a sugar mill, an ethanol plant, and a biomass power plant, which began commercial operations in the first quarter of 2024. Phase 2 involves the development of utilities to support the PLA bioplastics plant of NatureWorks and new partners, with commercial services starting in the fourth quarter of 2025. Dr. Krisada Prasertsukho, Managing Director of GGC, said the project reflects the potential to drive the biofuels business and extend into biochemicals and bioplastics, while supporting the BCG economy and the transition to a sustainable low-carbon economy.