BBGI, the biotechnology arm of energy conglomerate Bangchak Corporation, plans to supply a cleaner fuel called "bio-LNG" to ships, replacing liquified natural gas (LNG) and supporting the global campaign to reduce greenhouse gas emissions.

Similar to airlines that are committed to using sustainable aviation fuel (SAF), ship operators are required to use an alternative fuel with less of a carbon footprint.

LNG, heavy fuel oil and marine gas oil are used by ships. Large vessels prefer using heavy fuel oil because of its low cost.

BBGI intends to deliver the new fuel to a marine fleet operated by Singapore-based Kepple, a global asset manager and operator, said Daechapon Lersuwanaroj, chief executive and president of BBGI.

Bio-LNG will be produced from a factory, scheduled to be built between 2025 and 2026, he said. The facility is expected to produce 500 tonnes of bio-LNG a day, or 150,000-200,000 tonnes annually.

Mr Daechapon expects the bio-LNG project to cost between US$100-150 million.

Bio-LNG, also known as liquefied biomethane, is a biofuel made from biogas through a process called anaerobic digestion, which can potentially replace fossil fuel-derived LNG.

BBGI plans to initially use biogas made from solid waste and wastewater from the company's ethanol production plants in Kanchanaburi and Khon Kaen provinces, he said.