Green news: Marubeni, Idemitsu Kosan, and OPTC in tie-up for biomass PTA; Mitsubishi Chemical sells Indonesian PTA business to Lintas Citra Pratama

Marubeni Corporation, Idemitsu Kosan Co., and Oriental Petrochemical Taiwan Co are to establish a supply chain for biomass purified terephthalic acid (PTA) produced from biomass naphtha. Production of biomass PTA is planned to begin in 2024 in Taiwan, the first time it will be produced there.

Idemitsu Kosan will produce biomass PX (paraxylene) from biomass naphtha using the mass balance method. It will then be converted to biomass PTA by OPTC, a PTA manufacturer under the Far Eastern New Century Group (a PET manufacturing company in Taiwan). Marubeni will be coordinating the management of the supply chain's establishment as well as the marketing of the biomass products.

PET resin, the raw material for PET bottles, is composed of approximately 70% PTA and 30% ethylene glycol. Therefore, by using biomass PTA and biomass ethylene glycol, 100% biomass-derived PET resin can be produced. While biomass ethylene glycol has become increasingly popular, replacing petroleum-derived PTA with biomass-derived PTA has been a challenge.

Biomass naphtha, the raw material for biomass products, is manufactured from raw materials derived from renewable materials such as plants, and can thus reduce CO2 emissions compared to naphtha derived from petroleum.

The biomass PX manufactured by Idemitsu Kosan obtained the international ISCC PLUS Certification, which manages and ensures the supply chain of products made from sustainable raw materials such as biomass and allows the application of the mass balance method. OPTC will also obtain ISCC PLUS Certification in 2024.

Meanwhile in other news, in what it says is a strategic move to enhance its business portfolio and reinforce its commitment to sustainable growth, Mitsubishi Chemical Group Corporation says that it will transfer shares of PT Mitsubishi Chemical Indonesia, which operates the PTA business to investment/trading firm PT Lintas Citra Pratama, a company with plans to commercialise paraxylene, a key raw material for PTA in Southeast Asia.

PT Mitsubishi Chemical Indonesia is the largest producer of PTA in the country, with a capacity of 660,000 tonnes/year.

The two group companies of Mitsubishi Chemical Group, Mitsubishi Chemical Corporation, and PT Lintas Buana Kasei own the shares of MCCI.

MCCI, a company established in 1991, has been a major player in the Indonesian PTA market, contributing significantly to the production of polyester products such as fibres, PET bottles, and films.

Despite the stability and strength of Indonesia’s PTA market, Mitsubishi Chemical Group has continuously evaluated its business direction, aligning with its management policy of portfolio management focused on market growth, competitiveness, and sustainability.

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