Sustainable Aviation Fuel & Bio-Fuels

Verbio SE outlined its next development phase at its Capital Markets Day in Bitterfeld, marking the commissioning of a new ethenolysis plant for bio-based speciality chemicals as a milestone in the expansion of its renewable-molecule production platform and biorefineries. After years of high investment, the company said its focus is now increasingly on utilizing the capacity it has created, optimizing existing production plants and increasing earnings and cash flow. The event covered the market and competitive positioning of Verbio's existing business divisions, the further development of its business base in the USA, and the commercial ramp-up of its new chemical products. Verbio pointed to the resurgence of biomass as a raw material revitalizing the biofuels market while opening new value-creation opportunities beyond it, including expanded trading activities and additional revenue potential from the utilization and storage of biogenic CO2. Chief Executive Officer Claus Sauter said Verbio has developed over two decades from a biofuel producer into an integrated platform for a wide range of renewable molecules, with the company's twentieth flotation anniversary days away, and that it will now harness that platform's potential to generate value, cash flow and long-term returns for shareholders. Verbio also reaffirmed its commitment to disciplined capital use and a balanced approach between profitable growth, financial stability and sustainable value creation.

Chalush Chinthammit, Chief Executive Officer and Managing Director of Khon Kaen Sugar Industry Public Company Limited, or KSL, said global sugar prices are starting to improve, edging up to around 18 to 19 cents per pound amid a still-tight balance between production and consumption. For the 2026/27 crushing season, which is expected to begin in mid-December 2026, the company forecasts the nationwide sugarcane crush at approximately 85 million tonnes, up from around 80 million tonnes in the previous season, which will allow mills to operate at fuller capacity, lift utilisation rates and reduce unit production costs. KSL's main export markets remain in Asia, namely Indonesia, China, Taiwan and South Korea, while the company is exploring opportunities to expand into new markets, particularly Africa. Beyond sugar, KSL holds a 30% stake in BBGI Public Company Limited, or BBGI, which operates in biofuels and high-value bio-based products, as well as the development of sustainable aviation fuel, or SAF, to create a new S-Curve for the business over the long term.

Uniper agreed to purchase future sustainable aviation fuel from Syzygy Plasmonics' NovaSAF platform under a new supply deal. The NovaSAF agreement is intended to expand Uniper's low-carbon fuel offering for aviation clients under tightening European sustainability rules, adding exposure to renewable and bio-based fuels as policy and airline demand for cleaner jet fuel continues to build. Uniper operates an energy portfolio across Germany, the United Kingdom, Sweden, the rest of Europe, and other regions, so securing access to sustainable aviation fuel connects a low carbon product directly into markets where regulators and airlines are tightening standards on jet fuel emissions. The key proof point for investors is progress on Syzygy's NovaSAF facilities, especially the Uruguay plant expected around 2028, with Uniper expected to disclose contracted SAF volumes, pricing structures and contribution to its low carbon segment once production plans are clarified and the project reaches final investment decision. The deal does not change analyst expectations, which point to pressure on Uniper's revenue and margins over the next few years, but it shows the business leaning into greener commodities that could support more stable profitability over time.

Bangchak Corporation Public Company Limited, together with the Ministry of Tourism and Sports, the Department of Tourism, the Designated Areas for Sustainable Tourism Administration, the Thai Hotels Association, and the Thai Restaurant Association, signed a memorandum of cooperation on the management of used cooking oil to serve as feedstock for the production of sustainable aviation fuel, or SAF, through the Fry to Fly project. The project promotes the systematic collection of used oil from hotel and restaurant businesses, alongside a campaign against reusing frying oil. The signing ceremony was held on 5 October 2026 at the Phonbodi Meeting Room of the Ministry of Tourism and Sports. The signatories were Mrs. Gloyta Nathalang, Senior Executive Vice President of the Sustainability Management and Corporate Communications Group at Bangchak; Miss Woratheera Suwannasorn, Deputy Director-General of the Department of Tourism; Mr. Siripakorn Cheawsamoot, Director of the Designated Areas for Sustainable Tourism Administration; Mr. Udom Srimahachota, Vice President and Chairman of the Environment Committee of the Thai Hotels Association; and Mrs. Thaniwan Kulmongkol, President of the Thai Restaurant Association. Miss Natthriya Thaweevong, Permanent Secretary of the Ministry of Tourism and Sports, served as honorary witness. Miss Natthriya said that sustainable tourism requires cooperation across the entire chain, from travel, accommodation, and food to resource and environmental management, and that this project links hotels and restaurants to the aviation sector. Mrs. Gloyta said that sustainable aviation requires cooperation beyond the airport, and that the Bangchak group has more than two decades of experience in using used cooking oil to produce biofuels, starting with biodiesel for vehicles and extending to SAF production using the HEFA-SPK process in line with international standards. Mr. Siripakorn said the cooperation aims to support sustainable tourism in three areas: health and safety, the environment and low-carbon tourism, and the circular economy, which generates supplementary income for communities by allowing them to exchange or sell used oil instead of simply discarding it.

DBS Vickers Securities Thailand said in an analysis that the Thai government is considering cutting excise taxes on biofuels to lower fuel prices and spur consumption. Currently, the excise tax on gasohol stands at 6.00 baht per litre and on biodiesel at 5.953 to 6.92 baht per litre. Raising the share of biofuels in use would help cut crude oil imports and ease the government's burden of subsidising fuel prices, with the Oil Fund now running a loss of about 100 billion baht. With demand for ethanol and biodiesel expected to rise, DBS Vickers has named 11 Thai stocks set to benefit, divided into three groups by business type. The first group is direct producers and distributors of biofuels, namely BBGI, EA, UBE, GGC and TAE. The second group is integrated palm oil producers linked to biodiesel, namely PCE, SMO, APO and VPO. The third group is sugar producers linked to ethanol, namely KSL, KTIS and BRR.

The Cabinet meeting approved the plan to handle fuel crises and the Fuel Fund Strategic Plan 2026–2029 on 22 September 2026, as proposed by the Ministry of Energy, in order to cope with the prolonged global energy crisis and to rely as much as possible on domestic energy sources. Mr. Pongpol Yodmuangcharoen, spokesperson for the Ministry of Energy, disclosed that the conflict situation in the Middle East and unrest along key maritime transport routes such as the Strait of Hormuz and strategic straits in the Red Sea have significantly reduced oil supply and affected net energy importing countries such as Thailand. The Ministry of Energy has therefore revised all energy planning assumptions, assessing that oil prices will not return to pre-war levels because infrastructure and many energy sources have been damaged and will take a long time to recover. The new strategic plan covers improving guidelines for stabilizing oil price levels, separating the fund's accounts between the oil and LPG groups, setting a framework for the price gap between gasoline and diesel, criteria for collecting contributions and compensation during crises, as well as liquidity management and borrowing to strengthen the fund. A key point is the review of the biofuel subsidy policy. From previously having a temporary provision canceling the subsidy, the government has returned to promoting and subsidizing it again, in order to reduce dependence on imported crude oil from the highly volatile global market and to build long-term energy security from domestic agricultural output.

Bualuang Securities said that BCP's sustainable aviation fuel (SAF) plant, the first in Thailand, began operating in May 2026 with a production capacity of 7,000 barrels per day, or 1 million liters per day, and can switch production between SAF and renewable diesel. The main feedstock is used cooking oil, about 40% of which comes from domestic sources and 60% is imported, while the company has long-term feedstock supply contracts with major food and retail operators in Thailand. SAF demand is being driven by increasingly stringent fuel blending mandates worldwide, with the EU starting at 2% in 2025 and rising to 6% in 2030, while Thailand begins with a 1% target in 2026 before increasing to 1-2% in 2027-29 and 3-5% in 2030-32. Global SAF demand is expected to rise from 3.6 billion liters in 2026 to 4.5 billion liters in 2027, although rising supply may pressure margins somewhat going forward. The business's highlight is its profitability, with the SAF spread rising from about 1,000 US dollars per ton in 2025 to roughly 1,300 US dollars per ton in 2026 year-to-date, or about 3 times the spread of conventional jet fuel. The plant generated EBITDA of about 1 billion baht in the second quarter of 2026, and SAF EBITDA is expected at 4 billion baht in 2026 and 6 billion baht in 2027. Even in a worst case where the margin falls to 800 US dollars per ton, it would still be about 2 times the spread of conventional jet fuel and generate 2027 EBITDA of about 4 billion baht. There is also upside from a 43% capacity expansion to 10,000 barrels per day, which is not yet fully reflected in long-term estimates and would be additional upside if the company proceeds with the project. Bualuang Securities maintained its Hold recommendation with a target price of 57 baht and an equal-weight stance on the energy sector. Key issues to watch are the direction of SAF margins as new supply gradually enters the market and clarity on further capacity expansion.

Analysts at several securities firms hold a positive view on Bangchak Corporation Public Company Limited, or BCP, after its sustainable aviation fuel business, SAF, began contributing significantly to earnings. BCP's SAF plant started commercial operations on 21 May 2026, with an investment of about 8.5 billion baht and a production capacity of roughly 7,000 barrels per day, or about 1 million litres per day. In the second quarter of 2026, its average capacity utilisation rate was approximately 6,800 barrels per day, with product sales of about 39 million litres, generating EBITDA of roughly 1 billion baht for BCP, or nearly 4% of total EBITDA. Asia Plus Securities gives a trading view with a target price of 58 baht. Trinity Securities recommends a speculative buy with a target price of 55 baht. Yuanta Securities Thailand has upgraded its recommendation to buy with a target price of 58 baht, and Land and Houses Securities maintains a buy recommendation with a target price of 56 baht. Over the longer term, BCP plans to raise SAF production capacity from 7,000 barrels per day to about 10,000 barrels per day within five years, largely using existing infrastructure. Meanwhile, demand for SAF looks set to grow on the back of Thailand's plan to push SAF blending, which aims to start at 1% and increase in later phases. However, competition for UCO feedstock still bears watching, as it could put pressure on costs.

Prime Minister and Interior Minister Anutin Charnvirakul held talks with Wouter van Wersch, Executive Vice President for International Affairs at Airbus, and Bert Porteman, a representative of Airbus Thailand, on ways to upgrade and expand cooperation between Thailand and Airbus in the aviation industry, space technology, human resource development, and clean energy. The Prime Minister affirmed the policy of promoting the aviation industry and future industries, and asked Airbus to consider broadening cooperation to cover more areas by building on the cooperation models the company has with other countries and extending them to Thailand. On clean energy, the Prime Minister proposed that Airbus promote the use of sustainable aviation fuel, or SAF, produced in Thailand, using Thai raw materials and agricultural output as part of the production chain. In addition, Airbus plans to establish a Center of Excellence in Thailand as a hub for developing knowledge, technology, and personnel, linking Airbus's global network to Thailand. The Prime Minister also proposed expanding cooperation in space technology and security, building on existing cooperation with the Geo-Informatics and Space Technology Development Agency, or GISTDA, and Thaicom Public Company Limited, as well as discussing cooperation with Thai Airways International Public Company Limited to support the goal of pushing Thailand to become the region's aviation hub.

Mom Luang Pikthong Thongyai, Chief Executive Officer of PTT Oil and Retail Business Public Company Limited, or OR, has unveiled a strategy for its non-oil business, saying it is a key profit engine amid volatile oil prices. The company is pressing ahead with expanding Cafe Amazon coffee shops both inside and outside its service stations, focusing on new locations in hospitals and community areas such as temples, and is considering developing a mobile store format. It is also teaming up with partners on collaboration products such as soy sauce to attract younger customers. On progress in its partnership with Central Plaza Hotel Public Company Limited, or CENTEL, to develop budget hotels within service stations, the company has finalised six pilot locations: Bangkok, Kanchanaburi, Ayutthaya, Phuket, Chonburi and Songkhla. Five are branches inside service stations and one is outside a service station, in the Don Mueang area near the Red Line train station opposite Terminal 2. The hotels are five-storey buildings with about 79 rooms per branch, priced at roughly 800 to 100 baht per night. Construction takes about one year, with a gradual opening in 2027-2028. The project has double-digit returns on investment and profit margins. OR is also the first company to offer sustainable aviation fuel, or SAF, at service stations for regional airports, blending Jet A1 fuel with biofuel made from used cooking oil at a ratio of about 1%, priced roughly five times higher than normal Jet A1.

Energy Absolute, or EA, has announced a target to raise sales of its bio-PCM product to 100 million baht within three years. Chatphol Sriprathum, the company's Chief Executive Officer, said that PCM, or Phase Change Material, which is extracted from palm oil, currently generates only modest sales and revenue, with its main markets being Japan and Korea, and that EA is the first and only Thai operator producing and exporting PCM at present. At the same time, the company is pressing ahead with the development of Green Diesel, or HVO, to meet demand for clean energy in overseas markets, and is preparing to expand investment in renewable energy businesses, including wind power plants and waste-to-energy plants, to offset revenue from the Adder scheme of its existing projects as those gradually expire. In addition, Green Technology Research Company Limited, part of the EA group, together with the Program Management Unit for Competitiveness, announced the winners of the Up the Phase project, narrowing 107 applicant teams from across the country down to 10 finalists. The winning entries were BioTemp 22, an innovation that controls temperatures between 20 and 24 degrees Celsius using Bio-PCM for platelet transport, and Evi-PCM Block, an innovation that locks in temperature to protect environmental evidence.

Plug Power said Tuesday it signed an agreement to supply 280 megawatts of electrolyzers for Arcadia eFuels' planned sustainable aviation fuel project in Denmark, while also becoming the preferred supplier for a pipeline of additional projects totaling more than 1 gigawatt. Shares of Plug rose 4.8% in premarket trading Tuesday. The initial agreement covers Arcadia's Project ENDOR at the Port of Vordingborg, where renewable electricity would power Plug's GenEco electrolyzers to produce about 110 tons of hydrogen a day, which Arcadia plans to combine with captured carbon dioxide to make synthetic aviation fuel, or e-SAF. Deliveries for the 280 MW ENDOR project will not begin until a notice to proceed is issued, and the project has not yet reached a final investment decision, while the additional 1 GW-plus pipeline represents potential business rather than firm orders. Under a separate cooperation agreement, Plug will be the preferred electrolyzer supplier for four additional Arcadia projects planned in Europe and the Americas, with Arcadia receiving priority access to Plug's manufacturing capacity. The project is aimed partly at demand created by the EU's ReFuelEU Aviation rules, which require sustainable aviation fuels to account for an increasing portion of fuel supplied at European airports, with separate requirements for synthetic aviation fuels beginning in 2030.

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.