Thai energy firm Bangchak Corp has yet to receive clarity on the government's expected mandate for sustainable aviation fuel usage, reported Reuters.

Bangchak began producing sustainable aviation fuel earlier this year, with a daily capacity of one million litres (800 tonnes). However, the company remains in a "limbo" without policy direction, said senior executive vice president Gloyta Nathalang at the APPEC conference in Singapore.

Nathalang said the SAF unit is still in a test run and is expected to be fully operational by early 2026. It can switch to renewable diesel output if required. She noted that while some markets and agreements exist, no official mandate has been issued.

The executive added that internal disagreements between ministries have delayed the decision on who should set the mandate. "By 2026, we expected there would be a mandate. Now we only have a few months left, there's no policy or mandate yet," she said.

Bangchak signed a supply agreement late last year with Shell Singapore's trading arm for sustainable aviation fuel, according to its company website.