Bangchak bets on renewables, storage and sustainable fuels in Southeast Asia’s energy transition
For decades, Bangchak Corporation was synonymous with Thailand’s fossil-fuel economy: its green-branded service stations a fixture of the country’s highways, its refinery in Bangkok’s Phra Khanong district supplying much of the nation’s transport fuel. Today, the group is redeploying its capital into a series of projects that aim to secure a foothold in Southeast Asia’s fast-evolving energy landscape.
From refining base to renewables growth
The company’s strategy rests on a simple calculation: oil refining still generates reliable cash flows, but long-term growth will depend on clean energy. Its subsidiary BCPG has become the spearhead of that transition, with a portfolio spanning solar and wind farms across the region.
The flagship is the Monsoon wind project in Laos, one of the largest wind schemes in Southeast Asia. Now commercially operational, it delivers power into Vietnam’s grid, illustrating how cross-border projects are beginning to bind together fragmented regional electricity markets. Analysts say the project also gives Bangchak visibility in a market where demand for renewables is expected to surge as Vietnam tightens climate pledges.
Further north, in Taiwan, Bangchak is pressing ahead with two new solar farms, adding over 100MW of capacity. Combined with assets in Japan, these projects demonstrate the group’s willingness to compete in advanced Asian markets where renewable penetration is higher and competition more intense. At home, it continues to develop distributed solar projects tailored for communities and small-scale users.
Building capacity in storage
A distinctive feature of Bangchak’s approach is its push into battery energy storage systems (BESS). In a pilot scheme with Thailand’s Department of Cooperative Promotion, the group is installing 2.12MW of solar alongside 1.63MWh of storage for agricultural cooperatives. The initiative, while modest in size, reflects a bet on the decentralised model: energy produced and stored locally to cut costs and provide resilience in rural areas often underserved by central grids.
Industry observers see potential for replication. “If the economics of storage continue to improve, this model could spread across Southeast Asia’s rural economies,” says one Bangkok-based energy consultant.
Sustainable aviation fuel: a high-profile gamble
Bangchak’s most closely watched project is its new sustainable aviation fuel (SAF) unit. With a design capacity of 1mn litres per day, the facility positions Thailand among the few Southeast Asian countries with industrial-scale SAF production.
The unit is still in test runs, however, and commercial viability hinges on regulation. The Thai government has signalled interest in mandating SAF use, but different agencies remain divided on timelines and enforcement. Without such a mandate, producers risk being left with a premium-priced product airlines are reluctant to buy voluntarily.
“Bangchak has taken a calculated risk by moving early,” says an aviation analyst in Singapore. “If a mandate comes, they are well positioned. If it doesn’t, they will face a long wait for demand.”
Multi-energy stations and circular economy ventures
Domestically, the company is also reshaping its network of more than 2,000 filling stations into multi-energy hubs. Electric vehicle charging points are being rolled out, and management has hinted at future deployment of hydrogen infrastructure. With Thailand’s EV market expanding rapidly, the initiative provides another avenue for growth beyond oil products.
Bangchak is also investing in circular economy projects. Its “Fry to Fly” programme, which collects used cooking oil to convert into jet fuel, has garnered international attention and won environmental awards. Such projects bolster its ESG credentials and appeal to institutional investors increasingly targeting green bonds and transition-focused funds.
Recognition, but risks remain
Recent accolades underscore the group’s repositioning. The Phra Khanong refinery received an EIA Monitoring Award this year, while its broader climate initiatives earned a Climate Action Leader Excellence Award. These achievements help reinforce Bangchak’s case for green financing, an area of growing importance as Southeast Asian companies compete for capital tied to sustainability metrics.
Yet challenges are evident. Refining still accounts for the majority of Bangchak’s earnings, and margins are vulnerable to global oil price volatility. Competition for renewable assets across Asia is intensifying, pushing up valuations. And without clear policy support — particularly on SAF — some of the group’s flagship projects could struggle to generate returns.
Regional competition heating up
Bangchak’s strategy must also be viewed against a broader regional backdrop. Petronas of Malaysia has created Gentari, a subsidiary targeting 30-40GW of renewables by 2030. Pertamina in Indonesia is leveraging its vast geothermal reserves to expand into green power. Thailand’s own PTT is investing in hydrogen, EV infrastructure and international renewables.
Compared with these giants, Bangchak is smaller, but arguably more agile. Its early move into SAF, its experiments with community-based solar-plus-storage, and its clear net-zero pledge have distinguished it in a crowded field. “The regional incumbents are all trying to pivot, but Bangchak is moving faster in niches that could prove important,” notes an energy analyst in Hong Kong.
A story of reinvention
The company’s slate of projects reflects both ambition and pragmatism: leveraging oil revenues to bankroll renewables, moving into new technologies ahead of regulation, and seeking reputational capital through ESG innovation. Bangchak’s trajectory highlights how even a mid-sized refiner can reposition itself in an era of disruption — not by abandoning its past, but by using it as a platform to finance its next chapter.
