SET-listed Energy Absolute (EA), a renewable energy and electric vehicle (EV) developer and operator, is developing a sustainable aviation fuel (SAF) factory, hoping to create a new revenue source for the company.
EA joins Bangchak Corp Plc as both have plans to produce biofuel for aircraft.
Bangchak is building a 10-billion-baht SAF factory near its oil refinery in Bangkok’s Phra Khanong district.
EA’s wholly-owned EA Bio Innovation Co will operate the plant, scheduled to start production in the first quarter of next year, said Amorn Sapthaweekul, deputy chief executive of EA.
The facility, which is located in the eastern province of Rayong, has production capacity of 130 tonnes a day.
EA allocated a portion of its 2024 investment budget, totalling 14 billion baht, for construction of the facility.
SAF can replace jet fuel because their properties are similar, while the former has a smaller carbon footprint.
This type of biofuel, which can be made from used cooking oil and agricultural waste, produces up to 80% less greenhouse gas emissions than conventional jet fuel, according to media reports citing various forecasts.
EA plans to use used cooking oil and palm fatty acid, which comes from a biodiesel production process, as raw materials.
The company cannot use palm oil as a raw material because it is not accepted by aviation authorities.
Mr Amorn said many firms from the oil and aviation sectors talked with EA Bio Innovation about SAF purchases, but no agreements have been concluded yet.
The SAF production plan is expected to be partially responsible for EA increasing its revenue by 20% next year, he said.
A major source of revenue should come from sales of its electric buses, driven by the tourism recovery and demand from companies that offer a shuttle bus service to employees, Vittaya Changeutai, assistant vice-president of EA, said earlier.
The company announced in September it expects to earn more than 41 billion baht this year.
Some 46% of the revenue is projected from commercial EV and battery sales, followed by “clean” power generation (26%), biodiesel (22%), and other businesses (6%).