SAF Sustainable Aviation FuelGold report

Published May 2026Insight Research26 min read2027 Edition15 sources, 15 primary-gradeVery high source depth

Thailand SAF Sustainable Aviation Fuel 2027 Market Intelligence

Thai SAF market enters 2027 with a 1% blend mandate (Jan 2026, scaling to 8% by 2036), Bangchak's first commercial HEFA unit live at Phra Khanong (1M litres/day, exported May 2025), and PTTGC's Honeywell UOP Ecofining line. CORSIA Phase 2 mandatory from Jan 2027 lifts cross-border demand.

Key takeaways

1
CAAT SAF blend mandate live from Jan 1 2026, stepping to by 2036 under DEDE biofuel roadmap; 130 ICAO states (Thailand included) voluntarily participating in CORSIA Phase 1 (2024-2026), then Phase 2 mandatory from Jan 1 2027.
2
Bangchak (SET: BCP) opened Thailand's first dedicated HEFA-SPK SAF unit at Phra Khanong in April 2025 with 1 million litres per day capacity (about 6,289 barrels per day), first export 19 May 2025; the BSGF JV is the dominant domestic producer.
3
PTTGC (SET: PTTGC) became Thailand's first declared SAF producer in January 2025 via a Honeywell UOP Ecofining co-processing line at 6 million litres per year, with declared expansion to 24 million litres as demand scales.
4
CAAT signed a Memorandum of Understanding with eight Thai airlines (Thai International, Bangkok Airways, K-Mile Air, Nok Air, Thai AirAsia, Thai AirAsia X, Thai Lion Air, Vietjet Thailand) for coordinated 2026 SAF rollout; carbon-fee mechanism under regulatory review.
5
UCO feedstock supply is the binding constraint: Bangchak Fry-to-Fly collection at 290+ retail stations targeting 2,000 by end-2025; DIPROM MOU with Central Group, ThaiBev, Charoen Pokphand Foods, Thai President Foods, Thai Food Processors Association formalises the industrial UCO supply chain.
6
Global SAF supply 1.9 Mt in 2025 (double 2024's 1 Mt) but IATA projects only 2.4 Mt for 2026, falling well short of any by 2030 ambition; SAF prices run 2x to 5x conventional jet fuel in mandated markets.
7
Our 2027 thesis: Thailand's combination of cheap UCO, refining capacity, and early-mover policy makes it the de facto regional SAF hub for the ASEAN-Japan-Korea trade. Bangchak and PTTGC together address ~ of the domestic mandate; export upside hinges on Singapore ( Jan 2026), Japan ( by 2030), Korea, and EU ReFuelEU pull.

Executive summary

Thailand's sustainable aviation fuel market enters 2027 anchored on three certainties. First, the regulatory floor is hard: the Civil Aviation Authority of Thailand mandates a SAF blend in Jet A-1 effective 1 January 2026, scaling to by 2036 under the Department of Alternative Energy Development and Efficiency (DEDE) biofuel roadmap. Second, domestic production has arrived: Bangchak's HEFA-SPK unit at the Phra Khanong refinery, operated through the BSGF (Bangchak Sustainable Green Future) joint venture, came online in April 2025 with 1 million litres per day capacity (about 6,289 barrels per day) and exported its first cargo on 19 May 2025 — Thailand's first dedicated SAF facility certified to ASTM D7566. Third, CORSIA's transition from voluntary Phase 1 (2024 to 2026) to mandatory Phase 2 from 1 January 2027 lifts cross-border offtake demand for Thai international carriers.^{[, , ]}

PTT Global Chemical declared first SAF production in January 2025 via a Honeywell UOP Ecofining co-processing line, starting at 6 million litres per year with declared expansion to 24 million. Together Bangchak and PTTGC anchor roughly of the projected 370 million litres per year of Thai SAF production capacity by 2026 (per the CAAT DGCA60 paper). Demand splits across four buckets: domestic mandate compliance (CAAT MOU with eight airlines), CORSIA Phase 2 mandatory offset from 2027, export to Singapore ( mandate Jan 2026), Japan ( by 2030), Korea, and EU ReFuelEU programmes, and voluntary corporate offtake under RMI SAFc and the World Economic Forum's Clean Skies for Tomorrow channel.^{[, , ]}

Feedstock supply is the binding constraint. The dominant pathway today is HEFA from used cooking oil (UCO), with tallow from CPF and Betagro as the marginal feedstock. Bangchak's Fry-to-Fly campaign collects UCO at 290+ retail service stations targeting 2,000 by end-2025; the Ministry of Industry's DIPROM MOU with Central Group, Thai Beverage, Charoen Pokphand Foods, Thai President Foods, and the Thai Food Processors Association formalises industrial-grade UCO collection. Future pathways (alcohol-to-jet via Mitr Phol cassava ethanol, Fischer-Tropsch from municipal solid waste, e-SAF from green hydrogen, algae-derived HEFA) remain commercially unproven through 2027 but are tracked in the BOI New Energy roadmap.^{[, , ]}

CAAT, DEDE, BCP, PTTGC, AOT, ICAO, IATA, DIPROM

Data as of: FY2025 to early 2026

Thailand SAF blend mandate trajectory (% of Jet A-1, 2024 to 2036)

2024

Blend mandate (%)

Context

Voluntary pilot; OR-PTTGC and OR-Bangkok Airways SAF trial flights

2025

Blend mandate (%)

~0.1%

Context

Voluntary; BCP Phra Khanong first export May 19; PTTGC Ecofining live Jan

2026 (mandate live)

Blend mandate (%)

Context

CAAT-DEDE 1% blend mandatory Jan 1; ASTM D7566 HEFA only at this stage

2027 (modelled)

Blend mandate (%)

~2%

Context

Interim step under DEDE 2036 trajectory; CORSIA Phase 2 mandatory Jan 1

2030 (interim)

Blend mandate (%)

~4%

Context

ICAO Global Framework 5% CO2 reduction target year

2036 (terminal)

Blend mandate (%)

Context

DEDE biofuel roadmap terminal target

Year	Blend mandate (%)	Context
2024	0%	Voluntary pilot; OR-PTTGC and OR-Bangkok Airways SAF trial flights
2025	~0.1%	Voluntary; BCP Phra Khanong first export May 19; PTTGC Ecofining live Jan
2026 (mandate live)	1%	CAAT-DEDE 1% blend mandatory Jan 1; ASTM D7566 HEFA only at this stage
2027 (modelled)	~2%	Interim step under DEDE 2036 trajectory; CORSIA Phase 2 mandatory Jan 1
2030 (interim)	~4%	ICAO Global Framework 5% CO2 reduction target year
2036 (terminal)	8%	DEDE biofuel roadmap terminal target

DEDE biofuel roadmap, CAAT, ICAO Global Framework

Data as of: FY2025 to early 2026

SAF demand bucket mix, 2027 modelled (% of Thai SAF offtake)

Domestic 1% mandate (CAAT MOU airlines)

Share %

38%

Driver

Jan 2026 effective; CAAT MOU with 8 carriers ensures coordinated rollout

CORSIA Phase 2 mandatory offset (Jan 2027)

Share %

24%

Driver

Thai international carriers offset above 2019 baseline; SAF eligible toward CORSIA

Export to Singapore, Japan, EU, Korea blends

Share %

22%

Driver

Singapore 1% Jan 2026; Japan 10% by 2030; EU ReFuelEU 2% to 6% trajectory

Voluntary corporate offtake (RMI SAFc, Clean Skies)

Share %

12%

Driver

Microsoft, Google, Amazon, Salesforce SAFc certificates; corporate travel decarbonisation

Cargo airline pilot (freight forwarders, AOT)

Share %

Driver

DHL, FedEx, ANA Cargo, Cathay Cargo voluntary SAF pilots; AOT cargo handling support

Demand bucket	Share %	Driver
Domestic 1% mandate (CAAT MOU airlines)	38%	Jan 2026 effective; CAAT MOU with 8 carriers ensures coordinated rollout
CORSIA Phase 2 mandatory offset (Jan 2027)	24%	Thai international carriers offset above 2019 baseline; SAF eligible toward CORSIA
Export to Singapore, Japan, EU, Korea blends	22%	Singapore 1% Jan 2026; Japan 10% by 2030; EU ReFuelEU 2% to 6% trajectory
Voluntary corporate offtake (RMI SAFc, Clean Skies)	12%	Microsoft, Google, Amazon, Salesforce SAFc certificates; corporate travel decarbonisation
Cargo airline pilot (freight forwarders, AOT)	4%	DHL, FedEx, ANA Cargo, Cathay Cargo voluntary SAF pilots; AOT cargo handling support

Modelled from CAAT MOU, ICAO CORSIA, RMI SAFc, IATA SAF Outlook

Data as of: FY2026 to 2027 projection

Analyst framing

Why this report

SAF is now a real Thai industry rather than a future-fuel slide. Bangchak's Phra Khanong unit has shipped, PTTGC is producing on Ecofining, CAAT has the eight-airline MOU in place, and the DEDE roadmap commits to 8% by 2036. For investors, refiners, airlines, freight forwarders, and ESG officers the question shifts from whether SAF arrives to who captures the margin, which feedstock supply chain locks in, and how 2027 CORSIA mandatory rules reshape competitive demand. This report maps the producer stack, demand splits, regulatory levers, and the 2027 thesis.

Operator playbooks

Bangchak Corporation (SET: BCP, BSGF JV): the dominant Thai SAF producer. The Phra Khanong HEFA-SPK unit launched April 2025 with 1 million litres per day capacity (about 6,289 barrels per day), first export 19 May 2025 to a global buyer, ASTM D7566 certified. BSGF (Bangchak Sustainable Green Future) is the JV vehicle. Feedstock anchored on Bangchak's own Fry-to-Fly retail UCO collection at 290+ service stations targeting 2,000 by end-2025; supplemented by industrial UCO via the DIPROM MOU. Strategic: vertical integration from feedstock collection through refining to export, low landed UCO cost versus EU peers, and ASAFA membership for Asia-Pacific market access. Bangchak's listed refining business runs the conventional refinery alongside; SAF is the lower-volume, higher-margin sustainability play.

PTT Global Chemical (SET: PTTGC): first declared SAF producer (January 2025) via Honeywell UOP Ecofining co-processing technology embedded in existing refining infrastructure. Initial capacity 6 million litres per year scaling to 24 million as demand scales. Co-processing means SAF is produced in the same column as conventional jet fuel rather than a standalone HEFA unit, lowering capex but capping volume. Feedstock from UCO and agricultural waste. Strategic: deep PTT group integration (refining via TOP, retail distribution via OR, airline customer via THAI partnership), Honeywell UOP technology partner, and a faster path to first-litre versus standalone HEFA capex.

Thai Airways International (SET: THAI): flag carrier and primary domestic SAF offtake counterparty under the CAAT MOU. Signed earlier MOU with PTTGC and OR (PTT Oil and Retail Business) for SAF supply. International long-haul routes (London Heathrow, Frankfurt, Tokyo Narita, Sydney) carry CORSIA exposure that lifts mandatory SAF offtake from 2027. THAI's restructured balance sheet (emerged from rehabilitation 2024) constrains capex but the SAF cost passes through as a fuel-surcharge line, mitigating earnings drag.

Bangkok Airways (SET: BA): boutique full-service carrier with strong regional network and Samui hub. Started SAF pilot on international flights from Suvarnabhumi in July 2025 via OR (PTT Oil and Retail) partnership. Smaller domestic-and-regional fleet means absolute SAF volume is modest, but high-margin tourist routes (Samui, Phuket, Krabi) absorb fuel-cost pass-through more readily than low-cost peers.

Airports of Thailand (SET: AOT): operates Suvarnabhumi, Don Mueang, Chiang Mai, Phuket, Hat Yai, Chiang Rai — handling roughly 1.64 million tonnes of cargo in FY2026. AOT's role in SAF is distribution infrastructure: Suvarnabhumi and Don Mueang are connected to the existing fuel pipeline system, so SAF blending happens upstream at the refinery rather than at the airport. AOT's Net Zero target of 2044 sits ahead of the LTAG 2050 industry timeline; Airport Carbon Accreditation re-accreditation of six Thai airports announced 2025 signals readiness for SAF distribution at scale.

Production-pathway economics

All seven ASTM D7566-approved SAF pathways exist on paper, but in Thailand only HEFA (Hydroprocessed Esters and Fatty Acids) is commercial today. HEFA powers more than 95% of global SAF flights to date because it bolts onto existing hydroprocessing infrastructure with modest retrofit. Bangchak's Phra Khanong unit is a standalone HEFA-SPK plant (Synthetic Paraffinic Kerosene) — feedstock is UCO and tallow, hydrogen is added, water comes out, n-paraffins emerge, then a cracking reactor adjusts chain length to jet specification. PTTGC's Ecofining is the same chemistry executed as co-processing inside an existing refinery column.

Future pathways tracked but not yet commercial in Thailand through 2027: ATJ (alcohol-to-jet) from sugar or cassava bioethanol is the most plausible second wave given Mitr Phol, KSL, and Thai Sugar Millers' established ethanol capacity; LanzaJet-licensed ATJ technology is the global benchmark. Fischer-Tropsch from municipal solid waste or biomass gasification is technically mature but capital intensive (USD 1B+ per plant). E-SAF (Power-to-Liquid) from green hydrogen requires gigawatt-scale renewable capacity and remains a 2030+ play. Algae-derived HEFA was once forecast as a major Thai opportunity but global commercial deployment has stalled. The honest near-term picture: HEFA via UCO and tallow is what Thailand actually sells through 2027, with the binding constraint being UCO collection rather than refining capacity.

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