Braskem Siam, a joint venture between SCG Chemicals (SCGC) and Brazil’s Braskem, has partnered with Mitr Phol Bio Fuel, a subsidiary of Mitr Phol Group—ASEAN’s top ethanol producer—to strengthen the supply of agricultural ethanol for bio-ethylene production. This initiative marks a significant step toward sustainable plastic production in Asia, reinforcing Thailand’s position as a key player in the global bioplastics industry.

Under a newly signed Letter of Intent, Mitr Phol Bio Fuel will supply ethanol derived from agricultural sources to Braskem Siam, which will convert it into bio-ethylene. SCGC will then utilize this bio-ethylene as a feedstock to produce bio-based polyethylene (bio-PE). This eco-friendly polymer has a negative carbon footprint and is fully recyclable, just like conventional polyethylene, making it a viable solution for the rising demand for sustainable plastics across Asian and European markets.

Salin Panichsarn, Deputy Managing Director of Braskem Siam, shared insights into the progress of the bio-ethylene plant, stating, “We are currently assessing the construction of the facility at the Map Ta Phut Industrial Estate in Rayong Province. This project will merge Braskem Brazil’s expertise in bioplastics with SCGC’s Green Innovation, creating the first bio-ethylene plant in Asia and the first outside of Brazil.”

The planned facility aims to produce bio-ethylene from ethanol sourced from agricultural products, replacing fossil-based ethylene. With a production capacity of 200,000 tons per year, the plant is expected to be operational by 2027. Braskem Siam anticipates an annual ethanol demand of over 450 million liters, sourcing both locally and internationally.

Thunyawee Pongwattanasuk, Managing Director – Ethanol Business of Mitr Phol Bio Fuel, emphasized the strategic importance of this collaboration. “As a leading ethanol producer in the region, this partnership allows us to expand beyond the fuel sector and contribute significantly to the bioplastics industry. Mitr Phol Bio Fuel is committed to supplying high-quality ethanol to support Braskem Siam in establishing Thailand’s bioplastics production hub.”

Braskem Siam is also set to introduce a Responsible Ethanol Sourcing Program, modeled after Braskem Brazil’s sustainable procurement processes. This initiative will establish standards for assessing ethanol producers, ensuring responsible land use, water resource management, pesticide application, and waste disposal. Additionally, the program will uphold transparency and fair labor practices, reinforcing sustainability across the supply chain.

This collaboration not only strengthens Thailand’s ethanol value chain but also promotes a low-carbon economy, supporting the country’s sustainable development goals and driving the future of green plastics in Asia.