Braskem Siam announces major ethanol acquisition
Braskem Siam, a joint venture of SCGC and Brazil’s Braskem, plans to produce bio-ethylene from sugarcane-based ethanol supplied by Mitr Phol Bio Fuel. Set for completion in 2027 at Thailand’s Map Ta Phut Industrial Estate, the 200,000-tonne annual capacity plant will produce recyclable bio-based polyethylene, supporting global carbon reduction goals and sustainable packaging demand.
Bio-based plastics producer Braskem Siam is planning to buy ethanol from Mitr Phol Bio Fuel to produce bio-ethylene, becoming the first factory in Asia to supply this environmentally friendly product to support global efforts to reduce carbon dioxide emissions.
The announcement followed a letter of intent recently signed between Braskem Siam, a joint venture of SCG Chemicals (SCGC), and Brazil-based Braskem, a company that specialises in producing bioplastics.
Braskem Siam is to produce bio-ethylene for SCGC, which plans to use it as feedstock to produce bio-based polyethylene (bio-PE) that has a negative carbon footprint and is recyclable, similar to conventional polyethylene.
Bio-PE is used in various industries, such as food packaging, personal care and toys.
“We are evaluating the construction of the plant at Map Ta Phut Industrial Estate in Rayong,” said Salin Panichsarn, deputy managing director of Braskem Siam.
The company plans to produce bio-ethylene from ethanol derived from agricultural products, replacing fossil fuel-based ethylene, with production capacity set at 200,000 tonnes a year.
Plant construction is scheduled to be completed by 2027.
“We have an estimated ethanol feedstock demand of more than 450 million litres per year, and we are sourcing high-potential ethanol feedstock both domestically and internationally,” said Mr Salin.
He said Braskem Siam is interested in buying sugar cane-derived ethanol from Mitr Phol Bio Fuel, a subsidiary of sugar miller Mitr Phol Group.
“This letter of intent aligns with our strategy to expand beyond the fuel sector and increase our contributions to the bioplastics industry,” said Thunyawee Pongwattanasuk, managing director for ethanol at Mitr Phol Bio Fuel.
He said the company is ready to support Braskem Siam and stakeholders in producing and delivering quality ethanol to drive a bioplastics production plant in Thailand.
According to SCGC, the factory is expected to help address the growing demand for environmentally friendly polymers in the Asian and European markets, while aligning with Thailand’s development goals for sustainable ethanol production.
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Source : Bangkok Post
