Thailand will host the region’s first bio-based ethylene plant after the signing ceremony between Biopolymer producer, Braskem and petrochemical company, SCG Chemicals to form a joint-venture (JV) firm called Braskem Siam Company.
The JV aims to produce 200kt of bio-ethylene from bio-ethanol dehydration and to commercialise ‘I’m green’ bio-based polyethylene (PE). The latter is a plastic made from ethanol derived from sugar cane, a sustainably sourced renewable material. The material can be used in a variety of products including packaging for food and beverages. It can also be mechanically or chemically recycled as regular polyethylene.
This plant in Thailand is the first of its kind outside Brazil and will be located in Rayong, Thailand. It is also expected to almost double the existing global capacity of bio-based polyethylene to meet the growing demand for biopolymers, with a focus on the fast-growing demand for sustainable products in Asia.
The ethylene market is growing at a steady rate and is forecast to grow at 2% annually from 2022 to 2030.
GlobalData showed that rapid industrialisation, urbanisation, and increasing spending power of people will help to boost the growth of ethylene consumption in Asia.
Braskem CEO Roberto Bischoff said, “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.”
SCG Chemicals President and CEO Tanawong Areeratchakul added, “This joint venture and partnership is one of the essential strategies of SCGC to expand our green business, satisfying the soaring demand for environmentally friendly plastic which has a robust growth rate, especially in Asia and Europe.”