Braskem Siam, JV of SCGC and Braskem, Partners with Mitr Phol Bio Fuel to Accelerate Agricultural Ethanol Supply for Asia’s First Bio-Ethylene Production

Braskem Siam, a joint venture between SCG Chemicals (SCGC), a leading integrated polymer business for sustainability, and Braskem, the global leader in bioplastics from Brazil, has signed a Letter of Intent with Mitr Phol Bio Fuel, part of the Mitr Phol Group – the world’s leading sustainable in the food products industry and ASEAN’s leading ethanol producer – to supply agricultural based ethanol for the production of bio-ethylene. Braskem Siam will produce bio-ethylene for SCGC, which will use it as feedstock to produce bio-based Polyethylene (bio-PE) that has a negative carbon footprint and is recyclable, just like conventional polyethylene.

This addresses the growing demand for environmentally friendly polymers in the Asian and European markets and aligns with Thailand’s development goals in ethanol production for sustainability. This collaboration will enhance the development of ethanol value chain in Thailand, as well as concretely promote a low-carbon society.

Salin Panichsarn, Deputy Managing Director of Braskem Siam, provided an update on the progress of the bio-ethylene plant, saying, “We are currently evaluating the construction of the plant at the Map Ta Phut Industrial Estate in Rayong Province. This facility will integrate Braskem Brazil’s expertise in bioplastics technology with SCGC’s Green Innovation. It will be the first plant of its kind outside of Brazil. The goal is to produce bio-ethylene from ethanol derived from agricultural products, replacing fossil fuel-based ethylene, with a production capacity of 200,000 tons per year. This will be the first bio-ethylene production plant in Asia. The plant is expected to be completed by 2027. Braskem Siam has an estimated ethanol feedstock demand of over 450 million liters per year, and we are sourcing high-potential ethanol feedstock both domestically and internationally.”

Thunyawee Pongwattanasuk, Managing Director – Ethanol Business of Mitr Phol Bio Fuel, said, “As one of the region’s largest ethanol producers, this Letter of Intent aligns with our strategy to expand beyond the fuel sector and increase our contributions to the bioplastics industry. Mitr Phol Bio Fuel is ready to support Braskem Siam and all stakeholders in producing and delivering the quality ethanol needed to drive the establishment of the bioplastics production plant in Thailand.”

“Braskem Siam also plans to expand its Responsible Ethanol Sourcing Program by leveraging the principles and sourcing processes from Braskem Brazil and adapting them to the Thai context. This includes establishing standards for assessing producers in collaboration with environmental experts to ensure that business partners sustainably manage their cultivation areas, water resources, pesticide use, and waste disposal. Additionally, the program will require partners to uphold transparency and fair labor practices,” added the Deputy Managing Director of Braskem Siam.

About Braskem Siam

With a commitment to sustainability and innovation, Braskem Siam Limited focuses on advancing the development and distribution of bio-based plastics. A joint venture between Braskem and SCG Chemicals, or SCGC, combines global expertise and cutting-edge technology to produce I’m green™ bio-based polyethylene from sugarcane ethanol. This sustainable solution reduces carbon emissions while maintaining the versatility and recyclability of traditional plastics. I’m green™ bio-based PE is used in various industries, such as food packaging, personal care, toys, and more. With a state-of-the-art facility located in the Map Ta Phut Industrial Estate, Rayong Province, Thailand, Braskem Siam aims to nearly double the global capacity for bio-based polyethylene to meet the growing demand for environmentally friendly plastics in Asia and around the world. For more information, visit www.braskem.com