Project Bio Transformer Palm Oil
PSP Specialties, in collaboration with Global Green Chemicals Public Company Limited (GGC) and researchers from ENTEC, has joined forces to develop an innovative palm oil–based transformer oil.
This groundbreaking initiative aims to add significant value to Thailand’s palm oil industry while driving continuous growth in the nation’s bio-based economy between 2023 and 2025. The research project, officially titled “Development of a Flame-Retardant Bio-Based Transformer Oil from Palm Oil and Integrated Pilot-Scale Field Testing to Drive Sustainable Commercial Adoption”, is set to position palm oil as a premium industrial feedstock.
Oil palm is one of Thailand’s most important economic crops, serving as a primary raw material for edible oil production. Beyond its role in the food sector, it is also positioned as a high-value “crop of the future” with immense potential for producing clean energy, particularly biodiesel—an increasingly important alternative fuel. This is due to the well-recognized fact that oil palm offers the highest oil yield per unit of land area while maintaining the lowest production costs compared to any other oil-bearing crop.
Transforming Palm Oil into High-Value Bio-Based Transformer Oil
Bio-based transformer oil offers a substantial value uplift for Thai palm oil, increasing its value by as much as 565%, far exceeding the value gains from refined edible oil (67%) or biodiesel (23%). By enabling palm oil to enter the industrial and high-value manufacturing sectors, this innovation not only boosts market competitiveness but also advances Thailand’s ability to produce premium-grade industrial products.
The project is led by Dr. Boonyawan Yoosuk, Head of Fuel Technology Research at the National Energy Technology Center (ENTEC) under the National Science and Technology Development Agency (NSTDA). The initiative is backed by strategic partners across the transformer oil value chain, including potential producers and distributors of bio-based transformer oil, major national electricity utilities—the Electricity Generating Authority of Thailand (EGAT), Metropolitan Electricity Authority (MEA), and Provincial Electricity Authority (PEA)—as well as national standards organizations.
In addition, PSP Specialties Public Company Limited (PSP Specialties PCL) plays a pivotal role as one of the key success factors of the project. With over three decades of experience, the company represents the industrial manufacturing sector for a wide range of petroleum-based products serving multiple industries. These include lubricants, transformer oils, rubber process oils, greases, and more. PSP Specialties is also the largest domestic producer in its field and the leading distributor of transformer oil in Thailand.
Globally, environmental regulations are becoming increasingly stringent, with specific chemical restrictions being placed on transformer oils. This trend is pushing manufacturers toward biofuel-based feedstocks. PSP’s R&D team anticipates that these international developments will inevitably influence the Thai market. Without proactive innovation and adaptation to new industry standards, Thailand risks losing its competitive edge in the long term.
Finally, through the collaboration and expertise of the research team from the National Energy Technology Center (ENTEC)—with its in-depth knowledge of raw materials and product development—the project has been able to strengthen technical know-how and effectively translate research outcomes into practical industrial applications. This collaborative model serves as a tangible example of how research can be successfully commercialized, underscoring the fundamental goal of R&D: creating innovations that not only meet market demands but are also viable for real-world implementation.
