Braskem and SCG Chemicals look to expand biopolymer production across Thailand and South East Asia

Braskem, a biopolymer producer, and SCG Chemicals, a  petrochemical company in Thailand and Southeast Asia, has 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 bio-based polyethylene (PE), using the EtE EverGreen technology. The technology results from the partnership agreement between Lummus Technology  and Braskem  to develop and license this technology.

‘I’m green’ 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 the company says helps combat Climate Change. I’m green 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 green bio-based polyethylene is the ‘first of its kind’ outside of Brazil, according to the company The new plant in Thailand will almost double the existing capacity of I’m green bio-based polyethylene to meet the growing demand for biopolymers globally, with a focus on the fast-growing demand for sustainable products in Asia.

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 polyethylene grades for different applications.

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 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.”

Tanawong Areeratchakul, Chief Executive Officer 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.