Braskem and SCG Chemicals Collaborate to Progress Bio-Based Ethylene Project in Thailand

Braskem, a global leader in biopolymers, and SCG Chemicals, a prominent petrochemical company in Southeast Asia and Thailand, have inked a joint venture (JV) agreement to establish Braskem Siam Company Limited. This partnership, subject to approval from relevant anti-trust authorities and a final investment decision by the partners, is geared towards producing bio-ethylene through bio-ethanol dehydration and commercializing I'm greenTM bio-based Polyethylene using the EtE EverGreenTM technology. This innovative technology stems from a collaborative effort between Lummus Technology LLC and Braskem B.V., focused on technology development and licensing.

I'm greenTM bio-based Polyethylene stands as a plastic crafted from renewable raw materials, sourced sustainably (ethanol derived from sugar cane), diverging from conventional fossil feedstocks (such as oil-derived naphtha). This transformative approach significantly curtails the carbon footprint associated with plastics, contributing to the fight against climate change. I'm greenTM bio-based Polyethylene finds application across a spectrum of products, spanning food and beverage packaging, personal and home care items, toys, houseware, and plastic bags, among others. Moreover, it shares the ability for mechanical or chemical recycling with regular polyethylene.

The forthcoming bio-ethylene plant, geared to enable I'm greenTM bio-based Polyethylene production, stands as a pioneering endeavor outside of Brazil. Nestled in Thailand, this new facility is positioned to nearly double the existing I'm greenTM bio-based Polyethylene capacity. This expansion aims to cater to the escalating global demand for biopolymers, with a specific focus on the burgeoning appetite for sustainable solutions in Asia.

The strategic alliance capitalizes on Braskem's proficiency in bio-based plastics, complemented by SCG Chemicals' stronghold in the Asian market, as well as their expertise in Polyethylene (PE) production. Braskem brings a proven technology legacy through its partnership with Lummus Technology, operational acumen in ethanol dehydration processes, and the robust global reputation of the I´m greenTM brand. SCG Chemicals contributes its prowess in manufacturing high-quality Polyethylene grades catering to diverse applications, operational excellence in Polyethylene production, and a well-established market presence in Southeast Asia.

Roberto Bischoff, CEO of Braskem, stated, "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 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, highlighted the alignment of this collaboration with SCG Chemicals' strategic pursuits: "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 green business, satisfying the soaring demand from megatrend of environmentally friendly plastic which has robust growth rate especially in Asia and Europe."

The project site is set to be located in Map Ta Phut, Rayong, Thailand, envisioning a profound impact on sustainable plastic production in the region and beyond.