SCG, Braskem team up to assess bio-plastic feasibility

SCG Chemicals, a petrochemical arm of SCG Group, has teamed up with Braskem, the world's largest biopolymer producer, to conduct a feasibility study on bio-plastic production in Thailand under their joint move to reduce carbon dioxide emissions.

Braskem's biopolymer production facility in Triunfo, Brazil.

Bio-plastic is a type of biodegradable plastic made from biological substances, not petroleum.

The study will look into the development of a bio-ethanol dehydration plant to produce bio-ethylene and bio-based polyethylene, known as PE, according to a memorandum of understanding (MoU) signed by the two companies.

"This MoU means we are exploring potential options for partnering and investing with Braskem to bring the production of bio-based polyethylene to Asia," said Tanawong Areeratchakul, president of SCG Chemicals.

If the study findings are approved by the two companies, the production facility will be built in Map Ta Phut in Rayong.

This project will combine Braskem's technology and bio-plastic know-how with SCG Chemicals' knowledge of the Asian market and its expertise in PE production.

Roger Marchioni, Braskem's director for Asia, said his company keeps looking for opportunities to expand production under sustainable solutions.

The joint project will not only contribute to the company's carbon neutrality commitment by 2050, but it may also be a landmark for Braskem's footprint in Asia.

"We are fortunate to develop this potential partnership with SCG Chemicals that shares the same view of sustainability," said Marchioni.

Braskem sells plastic resins and chemical products to various industries, including food packaging, construction, manufacturing, automotive, agribusiness and health.

It runs 40 industrial units in Brazil, the United States, Mexico and Germany, with net revenue of US$13.2 billion.

Earlier this year, SCG Chemicals said it would increase its green polymer products to 200,000 tonnes by 2025.

The firm also wants to increase the proportion of high value-added products to 50% of all its products by 2030.