SET-listed Bangchak Corporation is seeking partners to conduct e-fuel research and development in a move to replace fossil-derived fuels, which are blamed for increasing carbon dioxide emissions.
E-fuel, also known as electrofuel, is a type of synthetic fuel created by using electricity from renewable sources to combine hydrogen and carbon dioxide in order to produce synthetic hydrocarbon fuel.
The new fuel could be used with internal combustion engine-powered vehicles.
“We do not want to do R and 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 is planning to have its own research centre to facilitate the development of e-fuel projects.
The company will spend part of its US$30-milion budget, allocated for new businesses and innovation, to fund the construction, said Mr Chaiwat.
It also plans to ask for financial support from the Office of National Higher Education, Science Research and Innovation to help translate its research facility project into action.
Mr Chaiwat was speaking as he led a team of executives to study e-fuel projects at ENEOS Corporation in Yokohama, Japan.
ENEOS currently produces 1 barrel, or 159 litres, of e-fuel a day, at its prototype plant, supported by Japan’s New Energy and Industrial Technology Development Organisation.
The company is testing the new fuel with a shuttle bus service at the Expo 2025 in Osaka.
The event, which started on April 13, will run through Oct 13.
Synthetic hydrocarbon is a promising fuel that can support campaigns aimed at achieving carbon neutrality, a balance between carbon dioxide emission and absorption.
Though vehicles using synthetic hydrocarbon emit carbon dioxide, the process of making this e-fuel requires a manufacturer to capture carbon dioxide to combine it with green hydrogen.
Green hydrogen is produced by using electricity made from renewable energy to split water molecules into oxygen and hydrogen.
Mr Chaiwat sees the potential of synthetic hydrocarbon but noted that the development of e-fuel is four times as costly as fossil-derived fuels.
The price of e-fuel is expected to decrease and become more competitive with conventional oil prices after 2040, he said, citing an estimate from ENEOS experts.
A good point is that it can be used with oil-powered vehicles without the need to adapt their engines.
The push for alternative fuels is part of Bangchak’s business development plan. The company is making a test run at its factory to produce sustainable aviation fuel, a biofuel for aircraft, which is also aimed at reducing carbon dioxide emissions.