Braskem and SCGC’s bio-based ethylene project in Thailand

Plan to produce 200kt annually of bio-based polyethylene

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Braskem
Braskem signs JV with SCGC for new production plant in Thailand 1

Braskem, a global biopolymer producer, and SCG Chemicals or SCGC,  petrochemical company in Thailand and Southeast Asia, have signed a joint venture agreement to produce bio-ethylene from bio-ethanol dehydration and to commercialize Braskem’s ‘I’m green bio-based Polyethylene’, using the EtE EverGreen technology. 

The technology results from a partnership agreement between Lummus Technology and Braskem. The bio-ethylene plant, which will enable the production of I’m green 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 green bio-based polyethylene, to meet the growing global demand for biopolymers, with a particular fast-growing demand for sustainable products in Asia and Europe.

Braskem
The Braskem and SCG Chemicals teams after the agreement was signed.

I’m green bio-based polyethylene is a plastic made from ethanol, which is produced from agricultural sources. This sustainably sourced, renewable raw material can be used for the production of plastics instead of traditional fossil feedstock, such as naphtha from oil. Bio-based Polyethylene promotes a significant reduction of CO2, making a positive contribution to the planet. 

The polyethylene is used in a variety of products, including packaging for food and beverages, personal and home care products, toys, houseware, and plastic bags. It can also be mechanically or advanced recycled, just as regular polyethylene. 

The combination of Braskem’s bio-based plastics know-how with SCGCs’ position in the Asian market and expertise in PE production provides a solid business basis for the joint venture. Braskem will contribute with its proven EtE EverGreen technology, operational experience in ethanol dehydration process and the I´m green brand strength in key global markets. SCGC 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™ bio-based PE offer to deliver circular low carbon alternatives to our customers to meet their increasing demand for sustainable solutions. This partnership with SCGC 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.”

Tanawong Areeratchakul, Chief Executive officer and president of SCG Chemicals Public Company Limited or SCGC added: “SCGC aims to develop green innovations, for example through the production of environmentally friendly polymers (Green Polymer) and innovations for low carbon solutions. We do this by increasing our 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 of Green Polymer is one of the essential strategies of SCGC to expand our sustainable business. Through the collaboration, we aim to satisfy the soaring demand for environmentally friendly plastics, which has robust growth rates particularly in Asia and Europe. The business of the joint venture is in accordance with the BCG model of Thailand; the guidelines for the development of a bio-circular green economy:”.

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