MEG is used in the production of polyethylene terephthalate (PET), a versatile plastic that is used in industries like textiles and packaging, particularly beverage bottles

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The companies aim to become the global leader in the bioMEG market. (Credit: Braskem)

Brazilian biopolymer producer Braskem has agreed with Sojitz, a Japanese distributor of chemicals and polymers, to create a joint venture (JV) to produce and market bioMEG (monoethylene glycol) and bioMPG (monopropylene glycol).

The agreement will foresee the construction of three industrial units, with the first one starting up in 2025 once the technological development is completed in 2022.

The JV will combine Braskem’s competence in the industrial production and marketing of renewable-source chemicals and plastics with Sojitz’s presence in Asia, which accounts for 80% of the worldwide MEG market.

Braskem renewable chemicals & specialities officer Gustavo Sergi said: “We are pooling the efforts, expertise and investments of the two companies that are references in their respective segments to create a global leader in bioMEG that can meet the strong market demand for sustainable and renewable products.

“The partnership between Braskem and Sojitz marks the advance of technology – developed on a demonstration-scale with Danish company HaldorTopsoe – to the commercial production phase with a clear combination of competencies and resources for scaling up.”

Sojitz basic chemicals department general manager Manabu Endo said: “We are pleased to have the partnership with Braskem. We promote this sustainable material to various industries globally with our strong and wide-ranged market networks.

“This is a huge progress towards our ambition to realise 100% Biomass PET together with our project to produce bio Paraxylene, another raw material of PET, partnering with Japanese partners.”

MEG is used in the production of polyethylene terephthalate (PET), a versatile plastic that is used in industries like textiles and packaging, particularly beverage bottles.

It is now made mostly from fossil-based raw materials such as naphtha, gas, or coal. According to Braskem, the MEG global market is estimated to be more than $25bn.

Monopropylene glycol (MPG) is used in multiple sectors ranging from unsaturated polyester resins (UPR), which are used in the construction industry, to cosmetics.