Braskem and SCG Chemicals launch bio-ethylene company for global biopolymers demand

17 Aug 2023 --- Braskem and SCG Chemicals (SCGC) are creating a new business – Braskem Siam Company – to produce bio-ethylene from bioethanol dehydration and to commercialize “I’m green bio-based PE,” produced from ethanol from sugarcane, using EtE EverGreen technology.

The joint venture aims to produce sugarcane-derived bio-ethylene instead of fossil-based ethylene. The technology results from the partnership agreement between Lummus Technology and Braskem to develop and license this technology. 

Roberto Bischoff, CEO of Braskem, says: “This partnership with SCG Chemicals is aligned with our commitment to produce one million [metric] tons of green products by 2030, replacing fossil with renewable feedstock and contributing to lowering the carbon footprint of our industry.” 

“I’m green bio-based PE” is a plastic made from an environmentally sustainably sourced renewable raw material (ethanol from sugarcane) instead of traditional fossil feedstock (naphtha from oil), promoting the reduction of the plastic’s carbon footprint. 

The product can be used in a variety of products, from packaging for F&B to personal and home care products, toys, houseware and plastic bags. Such as regular PE, the bio-based product can be mechanically or chemically recycled.

The joint venture aims to produce sugarcane-derived bio-ethylene instead of fossil-based ethylene.Meeting biopolymer demand
The bio-ethylene plant that will enable the production of the “I’m green bio-based PE” is the “first-of-its-kind” outside of Brazil. The new plant in Thailand is said to double the existing capacity of the material to meet the growing demand for biopolymers globally, focusing 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 expertise in PE production provides a solid business basis for the joint venture. 

The global biopolymer producer Braskem will contribute with technology through its partnership with Lummus Technology, operational experience in ethanol dehydration process and the I’m green brand in key global markets. 

SCG Chemicals, leading in the petrochemical industry in Thailand and Southeast Asia, will provide expertise in high-quality PE grades for different applications, operational excellence in PE manufacturing and market reach in Southeast Asia.

Tanawong Areeratchakul, CEO and president of SCG Chemicals, concludes: “SCGC aims to develop Green Innovation, for example, environmentally friendly polymer and innovation for low-carbon solution through increasing green polymer product portfolio to reach one million [metric] tons annually by 2030, following Environmental, Social and Governance standards.” 

“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 the megatrend of environmentally friendly plastic, which has a robust growth rate, especially in Asia and Europe.” 

Edited by Natalie Schwertheim