Braskem and SCG Chemicals Partner to Advance Bio-Based Ethylene Project in Thailand

Global biopolymer producer Braskem, and SCG Chemicals, a leading petrochemical company in Thailand and Southeast Asia, have signed a joint venture (JV) agreement to create Braskem Siam Company Limited.

This joint venture aims to produce bio-ethylene from bio-ethanol dehydration and to commercialise the “I’m green” bio-based polyethylene (BPE), using innovative industry technology.

The “I’m green” BPE 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 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 new bio-ethylene plant in Thailand will almost double the existing capacity of “I’m green” BPE to meet the growing demand for biopolymers globally, with a focus on the fast-growing demand for sustainable products in Asia.

The JV will see SCG Chemicals provide expertise in high-quality polyethylene grades for different applications, operational excellence in polyethylene manufacturing, and market reach in Southeast Asia, while 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.

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.”