Biopolymer producer Braskem and petrochemical company SCG Chemicals have signed a joint venture agreement to create Braskem Siam Company and open a new ethylene plant.
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 commercialise “I’m green” bio-based polyethylene (PE).
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By GlobalDataI’m green bio-based polyethylene is a plastic made from ethanol from sugar cane, a sustainably sourced renewable material.
The material can be used in a variety of products, including packaging for food and beverages. It can also be mechanically or chemically recycled as regular polyethylene.
The bio-ethylene plant, that will enable the production of the bio-based polyethylene, is reportedly the first of its kind outside of Brazil. This will be located in Map Ta Phut, Rayong, Thailand.
The new plant is expected to almost double the existing capacity of bio-based polyethylene to meet the growing demand for biopolymers globally, with a focus on the fast-growing demand for sustainable products in Asia.
The ethylene market has been attaining steady growth over the years and is expected to grow at more than 2% during 2022-2030.
GlobalData expects rapid industrialisation, urbanisation, and increasing spending power of people to boost the growth of ethylene consumption in Asia.
Braskem CEO Roberto Bischoff commented: “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.”
SCG Chemicals president and CEO Tanawong Areeratchakul added: “This joint venture and partnership is one of the essential strategies of SCGC to expand our green business, satisfying the soaring demand for environmentally friendly plastic which has a robust growth rate, especially in Asia and Europe.”
SCG Chemicals recently signed a joint agreement with carbon negative materials company Origin Materials to develop sustainable products using eucalyptus feedstocks.
