In a major strategic partnership aligning two of Thailand’s leading business conglomerates, CP Axtra Public Company Limited (SET: CPAXT) and Global Green Chemical Public Company Limited (SET: GGC) have signed a Memorandum of Understanding (MOU) to transform used cooking oil into Sustainable Aviation Fuel (SAF).
Under the terms of the agreement, GGC—the green chemical subsidiary of PTT Global Chemical Public Company Limited (SET: PTTGC) under the PTT Group—will collaborate with CPAXT, the retail arm of the CP Group. The joint project will establish an efficient system to collect used cooking oil from CPAXT’s extensive network of Makro and Lotus’s branches, targeting a collection volume of 300,000 liters per year. The gathered waste oil will be refined and upgraded for use as feedstock in producing high-value products, including SAF, bioplastics, and biochemicals.
Siriporn Dechsingha, Chief Sustainability and Communications Officer of CPAXT, highlighted that the collaboration connects CPAXT’s massive commercial footprint with GGC’s processing capabilities. In the past, disposing of used cooking oil was a direct operating expense for CPAXT, creating both waste management costs and environmental pollution. By turning waste into a high-value resource, this partnership eliminates disposal costs, lowers carbon emissions, and unlocks new commercial opportunities.
From GGC’s perspective, securing raw materials is the most critical hurdle in SAF commercialization. While SAF technology is already accessible to industry players, securing a reliable and scalable supply of used cooking oil remains a challenge. GGC Managing Director Dr. Kridsada Prasertsuko emphasized that CP Axtra’s vast retail network provides the ideal infrastructure to study, collect, and optimize waste oil recovery, aiding the broader industrial transition to a low-carbon circular economy.
This feedstock alliance emerges as global aviation regulations tighten dramatically. The European Union’s “ReFuelEU Aviation” regulations, which went into effect on January 1, 2025, mandate that all flights departing EU airports must utilize fuel blended with a minimum of 2% SAF. This requirement escalates to 6% by 2030, 20% by 2035, and 70% by 2050.
Airlines flying into or over EU airspace without meeting SAF standards face heavy carbon taxes. This regulatory reality is driving airlines and fuel suppliers to secure their supply chains, positioning GGC and CPAXT to capitalize heavily on the rising international demand for sustainable fuels.
