Brazil's Braskem, a leader in Latin American thermoplastic resins industry announces that it's Board of Directors has approved the R$500 mln Green Polyethylene Project. This project will produce ethylene and polyethylene from sugarcane ethanol, with operational startup scheduled for 2011 at the Southern Petrochemical Complex in Rio Grande do Sul state. To finance this first commercial-scale operation in the world producing green polyethylene made from 100% renewable raw materials, Braskem plans to use 30% own funds and seek finance for the remaining 70%.
With demand identified at approximately 600,000 tons, mainly in the international market, the green polyethylene will command a premium of between 15% and 30% over the price of polyethylene made from nonrenewable raw materials. The project will have return estimated at US$200 mln in net present value. Braskem has already concluded the conceptual and basic-design phase, and the detailing phase and start of construction will begin in early 2009.