Braskem, a global biopolymer producer, and SCG Chemicals, a petrochemical company in Thailand and Southeast Asia, have signed a joint venture (JV) agreement to create Braskem Siam Company Limited. The JV aims to produce bio-ethylene from bio-ethanol dehydration and to commercialise I'm greenTM bio-based Polyethylene, using the EtE EverGreenTM technology.
The technology results from the partnership agreement between Lummus Technology LLC and Braskem B.V. to develop and license this technology.
I'm greenTM bio-based 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 greenTM bio-based 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.
The bio-ethylene plant, that will enable the production of the I'm greenTM bio-based Polyethylene is the first of its kind outside of Brazil. The new plant in Thailand will almost double the existing capacity of I'm greenTM bio-based polyethylene to meet the growing demand for biopolymers globally, with focus on the fast-growing demand for sustainable products in Asia.
The combination of Braskem's bio-based plastics know-how with SCG Chemicals' position in the Asian market and experience in PE production provides a solid business basis for the JV.
Roberto Bischoff, CEO of Braskem, said: "We are always looking for opportunities to expand the I'm greenTM bio-based 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 t of green products by 2030, replacing fossil with renewable feedstock, and contributing to lowering the carbon footprint of our industry."
Tanawong Areeratchakul, CEO and President of SCG Chemicals, added: "This JV and partnership between SCGC and Braskem for bio-ethylene production for green polymers is one of the essential strategies of SCGC to expand green business, satisfying the demand from the trend of environmentally friendly plastic which has robust growth rate especially in Asia and Europe. This JV aims to produce sugarcane-derived bio-ethylene instead of fossil ethylene. The business of the JV is in accordance with the guidelines for the development of a bio-circular-green economy."
The project will be located in Map Ta Phut, Rayong, Thailand.