Bangchak draws on the experience of Japan’s ENEOS Corporation, which operates a pilot e-fuel production plant. (Photo: ENEOS)
Thailand’s energy giant Bangchak Corporation will allocate part of its USD 30 million budget to develop e-fuel technology, aiming to reduce transportation carbon emissions. Executives from the Thai company recently visited ENEOS Corporation’s prototype e-fuel plant in Yokohama, Japan, as Bangchak actively seeks potential partners for future collaboration.
A major player in biofuels, Bangchak has begun producing Bio-VLSFO, a marine fuel blend containing 24% UCOME (Used Cooking Oil Methyl Ester) and marketed as B24. The first delivery was completed in February 2025. Aiming to achieve carbon neutrality by 2030, the company also inaugurated its Sustainable Aviation Fuel (SAF) production unit in April, with an initial capacity of 1 million liters per day, converting fatty acids and vegetable oils into neat SAF.
Bangchak develops e-fuel to replace conventional fuels
Currently, Bangchak is looking beyond biofuels to synthetic e-fuels. E-fuel production involves extracting hydrogen through electrolysis powered by renewable energy, which splits water into hydrogen and oxygen. The hydrogen is then combined with captured CO₂ to produce synthetic hydrocarbons. After refining, these can be turned into e-gasoline, e-diesel, e-kerosene, e-methanol, and other variants that serve as drop-in substitutes for conventional fuels and can be blended in any ratio.
How e-fuels are made: turning renewable power and captured CO₂ into carbon-neutral fuels. (Illustration: eFuel Alliance)
The use of e-fuels is considered carbon-neutral, as they emit only as much CO₂ during combustion as was previously captured in their production. E-fuels also help overcome the challenges of storing and transporting renewable energy, since they can be shipped at room temperature and pressure.
Although e-fuels remain costly to produce, the International Energy Agency (IEA) projects that the price of e-kerosene could fall significantly by 2030, enabling it to compete with biomass-based SAF. Currently, global aviation fuel demand is still dominated by conventional jet kerosene, while SAF represents less than 0.1% of total consumption. Nevertheless, manufacturers and airlines are increasingly testing flights powered entirely by SAF.
Thailand’s e-fuels market to reach USD 250 billion by 2050
The International Civil Aviation Organization (ICAO) estimates that e-fuels could supply 3 to 17% of global aviation fuel by 2035, rising to as much as 55% by 2050 if technology and policy continue to advance. In Thailand, the e-fuel market is projected to reach USD 250 billion by 2050, reflecting an average annual growth rate of around 20% from 2024.
To advance its e-fuel research and development, Bangchak is drawing on the experience of Japan’s ENEOS Corporation, which currently produces one barrel (159 liters) of e-fuel per day and plans to scale up to 10,000 barrels daily by 2040. ENEOS is also testing its new fuel on buses for the Osaka Expo 2025.
"We do not want to do R&D from scratch but prefer to join hands with energy firms to speed up work in this field," said Chaiwat Kovavisarach, chief executive and president of Bangchak.
Bangchak plans to establish its own research center to support the development of e-fuel projects. The company will allocate part of its USD 30 million budget for the construction and aims to seek additional funding from Thailand’s Office of National Higher Education, Science, Research and Innovation to help implement the project.
Source: Bangkok Post, Bangchak, eFuel Alliance, IEA
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