Braskem, SCG Chemicals form JV to advance Thai bio-based ethylene project
Iranpolymer/Baspar Thailand-based 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 aim of the new company will be 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, i.e. 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.
“This partnership with SCG Chemicals is aligned with our commitment to produce 1 million tons of green products by 2030, replacing fossil with renewable feedstock, and contributing to lowering the carbon footprint of our industry,” said Roberto Bischoff, CEO of Braskem.
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.
“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,” said Tanawong Areeratchakul, CEO and president of SCGC. Thus, this joint venture aims to produce sugarcane-derived bio-ethylene instead of fossil ethylene, by world-leading technology from the collaboration of Braskem-Lummus. The business of the joint venture is in accordance with 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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