Braskem, SCG Chemicals partner on biobased ethylene project in Thailand
August 18, 2023
BY Braskem
Braskem, the leading global biopolymer producer, and SCG Chemicals, a leading petrochemical company in Thailand and Southeast Asia, have signed a joint venture (JV) agreement to create Braskem Siam Company Limited. Subject to clearance from the relevant anti-trust authorities and final investment decision by the partners, this joint venture aims to produce bio-ethylene from bio-ethanol dehydration and to commercialize I’m green biobased polyethylene (PE), using the EtE EverGreen technology. The technology results from the partnership agreement between Lummus Technology LLC and Braskem B.V. to develop and license this technology.
I’m green biobased polyethylene is a plastic made from a sustainably sourced renewable raw material (ethanol from sugar cane) instead of traditional fossil feedstock (e.g., naphtha from oil). This promotes a significant reduction of the plastic’s carbon footprint which helps combat Climate Change. I’m green™ biobased polyethylene is used in a variety of products, from packaging for food and beverage to personal and home care products, toys, houseware, and plastic bags, to name a few. It can also be mechanically or chemically recycled just as regular polyethylene.
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The bio-ethylene plant, that will enable the production of the I’m green biobased polyethylene is the first of its kind outside of Brazil. The new plant in Thailand will almost double the existing capacity of I’m green biobased polyethylene to meet the growing demand for biopolymers globally, with a focus on the fast-growing demand for sustainable products in Asia.
The combination of Braskem’s biobased plastics know-how with SCG Chemicals’ position in the Asian market and expertise in PE production provides a solid business basis for the joint venture. Braskem will contribute with proven technology through its partnership with Lummus Technology, operational experience in the ethanol dehydration process and the I´m green™ brand strength in key global markets. SCG Chemicals will provide expertise in high-quality polyethylene grades for different applications, operational excellence in polyethylene manufacturing and market reach in Southeast Asia.
Roberto Bischoff, CEO of Braskem, said, “We are always looking for opportunities to expand the I’m green biobased PE offer to deliver circular low carbon alternatives to our customers to meet their increasing demand for sustainable solutions. 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.”
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Tanawong Areeratchakul, CEO and President of SCG Chemicals Public Company Limited or SCGC, adds, “SCGC aims to develop Green Innovation, for example, environmentally friendly polymer (Green Polymer) and innovation for Low Carbon solution through increasing Green Polymer product portfolio to reach 1 million tons annually by 2030 following ESG standards (Environmental, Social, and Governance). 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. 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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