Green tie-ups: Amcor, Mondelēz International invest in Licella recycling plant in Australia; Braskem and SCG Chemicals join forces for biobased ethylene in Thailand

Leaders in the packaging value chain have joined forces to further advance a circular economy for plastic packaging in Australia. Packaging firm Amcor and Mondelēz International, the company with iconic snack brands Cadbury, The Natural Confectionery Company, Pascall and others, are investing in recycling technology pioneer Licella. The investment announced will help Licella progress construction of one of the first advanced recycling facilities in Australia.

Licella will use its Catalytic Hydrothermal Reactor (Cat-HTR) technology to recycle end-of-life plastic back into a crude oil substitute suitable to produce new food-grade plastic packaging.

Cat-HTR is an advanced hydrothermal liquefaction (HTL) technology, which uses hot, pressurised water to continuously recycle end-of-life plastic that would otherwise be sent to a landfill. The new Australian facility, called Advanced Recycling Victoria, will initially process about 20,000 tonnes/year of end-of-life plastic, with plans to scale up to 120,000 tonnes/year. Through Amcor, Mondelēz International will have access to recycled content from this site to meet much of its Australian soft plastic packaging needs, significantly reducing its need for virgin plastic in Australia.

Mike Cash, president of Amcor Flexibles Asia Pacific, added, “Amcor will be able to meet increasing customer demand for recycled content in the region with this investment, as well as take another step closer to achieving our target of 30% recycled content across Amcor’s portfolio by 2030.”

Christine Montenegro McGrath, senior vice president and Chief Global Impact and Sustainability Officer at Mondelēz International, adds, “Our packaging strategy is focused on using less packaging, better packaging and helping to build better systems,” said McGrath. “This investment brings together multiple stakeholders in the supply chain to scale the infrastructure and technology needed to help create a more sustainable future for plastics and is part of our longer-term focus on working toward our goal of net-zero packaging waste by supporting circular economies.”

In other news, Brazilian biopolymer producer Braskem and Thai petchem firm SCG Chemicals have signed a joint venture (JV) agreement to create Braskem Siam Company Limited. Subject to clearance from the relevant anti-trust authorities and final investment decision by the partners, this joint venture aims to produce bio-ethylene from bio-ethanol dehydration and to commercialise   bio-based polyethylene (PE) technology, which results from the partnership agreement between Lummus Technology and Braskem to develop and license this technology.

The “I'm green” branded bio-based polyethylene is a plastic made from a sustainably sourced renewable raw material (ethanol from sugar cane) instead of traditional fossil feedstock (e.g., naphtha from oil). It is used in a variety of products, from packaging for food and beverage to personal and home care products, toys, houseware, and plastic bags, to name a few. It can also be mechanically or chemically recycled just as regular polyethylene.

The bio-ethylene plant, that will enable the production of the bio-based polyethylene is the first of its kind outside of Brazil. The new plant in Thailand will almost double the existing capacity of I'm green TM   bio-based polyethylene to meet the growing demand for biopolymers globally, with a focus on the fast-growing demand for sustainable products in Asia.

The combination of Braskem's bio-based plastics know-how with SCG Chemicals' position in the Asian market and expertise in PE production provides a solid business basis for the joint venture. Braskem will contribute with proven technology through its partnership with Lummus Technology, operational experience in the ethanol dehydration process.

SCG Chemicals will provide expertise in high-quality polyethylene grades for different applications, operational excellence in polyethylene manufacturing and market reach in Southeast Asia.

Roberto Bischoff, CEO of Braskem said: "We are always looking for opportunities to expand the I'm green TM bio-based PE offer to deliver circular low carbon alternatives to our customers to meet their increasing demand for sustainable solutions. This partnership with SCG Chemicals is aligned with our commitment to produce 1 million tons of green products by 2030, replacing fossil with renewable feedstock, and contributing to lowering the carbon footprint of our industry."

Tanawong Areeratchakul, CEO/President of SCG Chemicals Public Company Limited or SCGC adds: "SCGC aims to develop Green Innovation, for example, environmentally friendly polymer (Green Polymer) and innovation for Low Carbon solution through increasing Green Polymer product portfolio to reach 1 million tons annually by 2030 following ESG standards (Environmental, Social, and Governance). This joint venture and partnership between SCGC and Braskem for bio-ethylene production for Green Polymer is one of the essential strategies of SCGC to expand our green business, satisfying the soaring demand from megatrend of environmentally friendly plastic which has a robust growth rate, especially in Asia and Europe. Thus, this joint venture aims to produce sugarcane-derived bio-ethylene instead of fossil ethylene, by world-leading technology from the collaboration of Braskem-Lummus. The business of the joint venture is in accordance with the guidelines for the development of the Bio-Circular-Green Economy: BCG model of Thailand".

(PRA)

Subscribe to Get the Latest Updates from PRA  Please click here