OR Launches New Business Strategies in Collaboration with Thai VietJet Air to Launch Sustainable Pilot Flight

PTT Oil and Retail Business Public Company Limited (SET: OR) saw its share price close at THB 16.20 on Wednesday, with a trading value of THB 117 million. The stock has shown improvement since hitting an all-time low of THB 15.80 on July 2, marking the lowest level since its market debut.

Despite the price level being under its initial public offering (IPO) of THB 18.00 per share, CEO Disathat Panyarachun addressed various aspects of the company’s operations, confirming that there are no plans for share buybacks at the current stage.

Panyarachun stated that discussions with Gulf Energy Development Public Company Limited (SET: GULF) regarding the development of virtual banks are ongoing but not yet finalized, while OR’s investment in small hotel businesses within gas stations is progressing as the company explores potential business partnerships. He anticipates finalizing the details on the latter project within the next three months.

OR has collaborated with Thai VietJet Air to introduce a pilot flight utilizing sustainable aviation fuel (SAF), derived from used cooking oil (UCO) which exhibits chemical attributes similar to the Jet A-1 fuel with reduced long-life-cycle CO2 emissions, for the Bangkok-Da Nang route at Suvarnabhumi International Airport.

The SAF for the pilot flight will be manufactured through a collaboration involving Finland’s Neste, a prominent producer of sustainable fuels, PTT International Trading from the PTT Group, Malaysia’s Petco Trading Labuan Company Limited (PTLCL), a distributor and importer, and Bangkok Aviation Fuel Services Public Company Limited (SET: BAFS), a provider of fuel services for aircraft at Suvarnabhumi International Airport.

This partnership is in line with OR’s SDG vision, which seeks to foster a clean society and promote a healthy environment as part of its commitment to effectively and sustainably reach its 2030 objectives.

PTT Group has selected PTT Global Chemical Public Company Limited (SET: PTTGC) to serve as the producer of SAF by adjusting its oil refinery production units to support the production process, expected to commercially commence in January 2025.

The initial production capacity is set at 6 million liters annually, aiming to bolster the adoption of clean energy and expand OR’s network of partners for the distribution of SAF to airlines. Currently, OR supplies SAF to three airlines, namely Thai Airways International Public Company Limited (SET: THAI), Bangkok Airways Public Company Limited (SET: BA), and Thai VietJet Air.

To ensure a sustainable supply of UCO for the production of SAF, OR has devised a strategy for UCO procurement within its ecosystem. The company intends to acquire UCO from households and dining establishments that are frequent purchasers of liquefied petroleum gas (LPG) from OR. Additionally, plans are in place to source UCO from international markets. OR’s ambition is to establish itself as a frontrunner in SAF supply by the year 2030.

Thai VietJet Air has emphasized that the pilot flight represents a significant milestone for Vietjet Thailand and Vietjet Group, aligning with the commitment to fulfilling its mission in an environmentally sustainable manner. This initiative also resonates with Thailand’s objective to become a zero carbon emission destination by 2050. By participating in this project, Thai VietJet Air contributes to the global initiative outlined by the International Civil Aviation Organization (ICAO) to pave the way for a sustainable future in the aviation sector.