BRAZIL – Braskem has invested US$87 million in additional production capacity at its bio-based ethylene plant located in the Petrochemical Complex of Triunfo, Rio Grande do Sul, Brazil.
The investment, which constitutes an expansion by 30% of Braskem’s overall production capacity, aims to meet the growing global demand for bio-based products. The plant will now produce around 200,000 to 260,000 tonnes of product per year.
Braskem claims that its bio-based ethylene is made from “sustainably sourced, sugarcane-based ethanol which removes CO2 from the atmosphere and stores it in products for daily use.”
The initiative comes as part of the company’s ambition to increase the production of biopolymers to one million tons by 2030, and to become carbon neutral by 2050.
Walmir Soller, VP for Europe and Asia says: “The expansion of bio-based ethylene capacity reinforces Braskem’s commitment to sustainable development and innovation and proves the success of the strategy we engaged in thirteen years ago, when we launched the world’s first bio-based polyethylene production at industrial scale, with proprietary technology.”
Braskem says that each ton of plastic resin made from renewable feedstock represents the removal of 3 tonnes of CO2 from the atmosphere.
Since the plant’s beginning in 2010, more than 1.2 million tonnes of ‘I’m green’ bio-based polyethylene has been produced.
The company claims that the recent increase in production capacity will remove approximately 185,000 tonnes of CO2 equivalent per year.
Braskem sale in balance
Meanwhile, Braskem’s proposed BRL10 billion (US$2.11bn) sale is in balance after Alagoas says the company must pay for tremors it caused.
The governor of Alagoas state, Paulo Dantas, has asked the Federal Accounts Court to suspend the possible sale of Braskem until displaced residents are compensated for damages caused by the company.
Braskem’s abusive salt mining practice led to tremors in the Alagoas state capital of Maceió. The shocks damaged entire neighborhoods and forced tens of thousands to leave their homes, as reported by The Brazilian Report.
Last week, the company agreed to a BRL 1.7 billion (US$358.38m) compensation with the city government of Maceió.
“The agreement establishes the compensation and full refund of the municipality of Maceió in relation to any and all pecuniary and nonpecuniary damages incurred, and is subject to court approval,” said Braskem in a statement.
Mr. Dante argues that the agreement does not adequately compensate the 60,000 displaced people and does no include neighboring cities, where several of them have moved.
The state government also suffered losses because schools and health centers in the area were closed, added Mr. Dante.
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