Braskem and SCG Chemicals join forces to advance bio-based ethylene project in Thailand

Braskem, a global biopolymer producer, and SCG Chemicals, a leading petrochemical company in Thailand and Southeast Asia, have signed a joint venture agreement to establish Braskem Siam Company Limited. The joint venture will produce bio-ethylene from bioethanol dehydration using EtE EverGreen technology and commercialize I'm green bio-based polyethylene, subject to approval from relevant antitrust authorities and final investment decisions from the partners. The technology stems from a collaboration agreement between Lummus Technology LLC and Braskem BV to develop and license the technology.

I'm green bio-based polyethylene is a plastic made from a sustainably sourced renewable feedstock, ethanol from sugarcane, rather than traditional fossil feedstocks. This significantly reduces the carbon footprint of plastics and helps combat climate change. I'm green bio-based polyethylene is used in a variety of products, from food and beverage packaging to personal and home care products, toys, household goods and plastic bags, and it can also be recycled mechanically or chemically like regular polyethylene.

The bio-ethylene plant will produce I'm green bio-based polyethylene, the first of its kind outside of Brazil. The new plant in Thailand will nearly double the existing production capacity of I'm green bio-based polyethylene to meet the growing global demand for biopolymers, with a focus on Asia's rapidly growing demand for sustainable products.

Braskem's expertise in bio-based plastics combined with SCG Chemicals' position in the Asian market and expertise in PE production provide a solid business foundation for the joint venture. Braskem will provide proven technology, operational experience in ethanol dehydration processes and the strength of the I'm green brand in key global markets through its partnership with Lummus Technology. SCG Chemicals will provide expertise in high-quality polyethylene grades for different applications, operational excellence in polyethylene manufacturing and market coverage in Southeast Asia.

"We are always looking for opportunities to expand our I'm green bio-based PE product line to provide circular, low-carbon alternatives to our customers and meet their growing demand for sustainable solutions," said Roberto Bischoff, CEO of Braskem. "This collaboration with SCG Chemicals is in line with our commitment to produce 1 million tons of green products by 2030, replacing fossil fuels with renewable feedstocks and contributing to lowering our industry's carbon footprint."

SCG Chemicals CEO and President Tanawong Areeratchakul added: "SCGC aims to develop green innovations, environmentally friendly polymers and low-carbon solutions innovations, and by increasing its green polymer portfolio, it will reach 1 million tons per year by 2030, in line with ESG criteria. SCGC's joint venture and partnership with Braskem to produce green polymer bio-ethylene is one of SCGC's key strategies to expand its green business, meeting the growing demand brought about by the megatrend of environmentally friendly plastics, which is growing strongly in Asia and Europe."