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Braskem, SCG Confirm Thai Bio-based Polyethylene Project

The companies join forces to advance in a bio-based ethylene project that will deliver feedstock for the production of 200,000 tonnes/year of I’m green polyethylene.

Braskem and SCG Chemicals (SCGC) have 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 EtE EverGreen technology. This technology is derived from a partnership agreement between Lummus Technology and Braskem to develop and license this technology. The project will be located in Map Ta Phut, Rayong, Thailand, with the bio-ethylene feedstock used to polymerize 200,000 tonnes/year of bio-based polyethylene. SCGC operates conventional polymer plants for HDPE, LDPE, and LLDPE.

According to MLT Analytics’ Global Bio-based Polyolefin Report—2023 Edition, consumption of bio-based polyethylene is forecast to grow from around 200,000 tonnes in 2022 to over 900,000 tonnes in 2027, potentially reaching over 2.5 million tonnes in 2032. MLTA CEO Stephen Moore says: “Thailand was identified in a recent OECD report as one of a handful of countries where it makes economic and environmental sense to produce bio-based polyethylene from ethanol. We were expecting this bio-PE project in Thailand to receive the green light and its contribution is already incorporated into our forecasts.”

Braskem and SCG Signing Ceremony. Image courtesy of Business Wire.

I’m green bio-based polyethylene is based on sustainably sourced renewable ethanol from sugar cane. Braskem’s 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 like 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. 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.

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 tonnes of green products by 2030, replacing fossil with renewable feedstock, and contributing to lowering the carbon footprint of our industry.”


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