THAILAND – Petrochemical company SCG Chemicals and Brazil chemicals group Braskem have announced the signing of a joint venture agreement to create Braskem Siam Company Limited.
The new company will aim to produce sugar-cane-based bio-ethylene from bio-ethanol dehydration, which will then be used to produce I’m green bio-based polyethylene (PE).
To that end, a new bio-ethylene plant will be built with an annual capacity of 200kt, which will be the first of its kind outside of Brazil.
Braskem will contribute the proven EtE EverGreen technology resulting from the partnership agreement between Lummus Technology LLC and Braskem B.V., which the companies entered into in 2022.
In addition, the Brazilian company will bring operational experience in the ethanol dehydration process and the ‘I´m green’ brand strength in key global markets to the JV. SCG Chemicals will provide expertise in high-quality polyethylene grades for different applications, operational excellence in polyethylene manufacturing and market reach in Southeast Asia.
The project is subject to clearance from the relevant anti-trust authorities and final investment decision by the partners.
By using a sustainably sourced renewable raw material, like ethanol from sugar cane instead of traditional fossil feedstock, the carbon footprint of the PE can be significantly reduced.
‘I’m green’ bio-based polyethylene is used in a variety of products, from packaging for food and beverage to personal and home care products, toys, housewares, and plastic bags, to name a few. It can also be mechanically or chemically recycled just as regular polyethylene.
Roberto Bischoff, CEO of Braskem said: “This partnership with SCG Chemicals is aligned with our commitment to produce 1 million tonnes of green products by 2030, replacing fossil with renewable feedstock, and contributing to lowering the carbon footprint of our industry.”
Once built, the new plant in Thailand will almost double the existing capacity of I’m green bio-based polyethylene, allowing the growing demand for biopolymers globally to be better met – with a focus on the fast-growing market in Asia.
Tanawong Areeratchakul, CEO and president of SCGC added: “This joint venture and partnership between SCGC and Braskem for bio-ethylene production for Green Polymer is one of the essential strategies of SCGC to expand our green business, satisfying the soaring demand from megatrend of environmentally friendly plastic which has a robust growth rate, especially in Asia and Europe.”
The business of the joint venture is by the guidelines for the development of the Bio-Circular-Green Economy: BCG model of Thailand”. The project will be located in Map Ta Phut, Rayong, Thailand.
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