Braskem board approves R$500 mln project to produce ethylene and polyethylene from sugarcane ethanol

23-Dec-08

Board of Directors at Braskem has approved the Green Polyethylene Project. To be built at an investment of R$500 mln, the project will produce ethylene and polyethylene from sugarcane ethanol. The conceptual and basic-design phase has been concluded, and the detailing phase and start of construction will begin in early 2009. The project, to be built in the Southern Petrochemical Complex in Rio Grande do Sul state is scheduled for start up in 2011. The company has already made firm reservations for the project's critical equipment, such as the feed gas compressor and refrigeration compressor, which are high-technology equipment that must be ordered in advance to ensure the project timetable is met. To finance what will be the 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 global demand identified at approximately 600,000 tons, the green PE will command a premium of between 15 to 30% over conventional PE made from nonrenewable raw materials.