Green PE Business Augusto Morita Open Innovation
Product chain based on fossil source Source: US DOE Top Value Added Chemicals from Biomass Volume I - 2004
Possible product chain based on renewable source Detalhe do blocos fundamentais Source: US DOE Top Value Added Chemicals from Biomass Volume I - 2004 PEP Advanced Biorefinaries 2005 Patrick R. Gruber, Michael Kamm, Biorefineries Industrial Processes and Products, Vol 1, cap 1
Many companies are working to develop products based on renewable sources Source: Biopolymers Identifying and Capturing the Value, Alexander Schwartz, 4th European Bioplastics Conference, 2009
Chemicals from ethanol mapped routes (Proálcool program) Source: Quimica Verde no Brasil, 2010-2030, CGEE
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
From a Brazilian company in 2002, today Braskem is the leader thermoplastic resins producer in Americas and # 8 globally Become a leader in thermoplastic resins in Latin America The leader in thermoplastic resins in the Americas 2002 2005 2006 2007 2008 2009 2010
with production capacity spread across 31 industrial sites from North to South Industrial sites CAPACITY (kt/p.a.) 6.460 510 PVC 2.915 PP 3.035 PE Bahia 1 Naphtha Cracker 4 PE 1 PP 1 PVC 1 Chlorine Soda Alagoas 1 PVC 1 Chlorine Soda São Paulo 1 Naphtha Cracker 2 PP 3 PE Rio de Janeiro 1 Gas Cracker 1 PP 1 PE Rio Grande do Sul 1 Naphta Cracker 5 PE 2 PP 1 Green Ethylene United States of America 3 PP Fonte: Braskem
Economic and Financial Performance 2009* GROSS REVENUES R$ 28.2 billion NET INCOME R$ 21.8 billion EBITDA R$ 3.1 billion EXPORTS USD 2.5 billion Source: Braskem *Includes Quattor and Sunoco
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Vision 2020 To be the world leader in sustainable chemistry, innovating to serve people better 12
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Braskem Green Polyethylene Startup Sept 24, 2010 Volume 200kton/year Investment US$ 290 MM Braskem is the leading global supplier of biopolymers 14
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Main Clients Strong relationship with leading global companies
PE Products in the Media Estrela Banco Imobiliário June, 2008 Sustainable Banco Imobiliário Limited edition produce with green plastics pieces Sold in Walmart Brazil Press conference Action with community in the most famous park in São Paulo Advertisement in the Earth day
PE Products in the Media Natura June, 2010 Exclusive interview to Exame, one of the most important business magazine in Brazil Corporate advertisement in magazines and newspaper
PE Products in the Media J&J October, 2009 Exclusive interview to Isto É Dinheiro magazine, in the section Companies for the Environment Press release distributed worldwide First in its segment to use green PE
PE Products in the Media P&G August, 2010 Press release distributed worldwide from Cincinnati, US (P&G headquarter) Press event with Gisele Bundchen, who is the Pantene Brazil spokesperson Press conference Corporate advertisement in magazines and newspaper Live broadcast with Facebook: http://www.facebook.com/ca belodegisele
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Green HDPE portfolio - Families and main applications Family of Blow Molding grades Small volumes: rigid packaging (bottles) for cosmetic, household products and also beverage Large volumes: fuel tanks Family of Injection Molding grades Caps and Closures Housewares Toys Family of Film grades Shopping bags Blend with LDPE and LLDPE (Green or Petro)
Green LLDPE portfolio - Families and main applications Family of Film grades Hexene and Butene LLDPE Melt flow index from 1 to 3 Wide range of additive package Heavy duty bags and Valvulated bags Stretch Film (Cast and Blow) Automatic Packaging (FFS) Flexible packaging in general
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Green Polyethylene An alternative to traditional PE Traditional Sustainable Oil Polyethylene Gas Ethanol
Green Polyethylene An alternative to traditional PE Sustainable Green Polyethylene Ethanol Corn Sugar Beet Sugar Cane
Sugar Cane No impact in the global food / energy equation Amazonia Brazil has 22% of arable area in the world Sugar Cane in Brazil is cultivated mainly in the Southeast, 2,000 Km far from the Amazon Forest Corn 14 MM ha Soybean 22 MM ha Current ethanol + sugar 8 MM ha Sugar Cane Ethanol occupies only 1% of Brazilian arable area Pasture/ Cattle 220 MM ha Savannah 7 MM ha
Sugar Cane and Brazil History of more than 30 years Sucrose supply (ATR) in Brazil (in 000 ton) 79,36 mm ton in 08/09 = 25 billion liters of Ethanol per year 80000 Productivity: +2,6% a.a. 40000 7,3 mm ton in 75/76 1975 1992 2008 Pro-Álcool (1975 1989) created the ethanol fuel chain and supported R&D (production, logistic, varieties) Sucrose supply increased 10 times in the last 28 years Flex-fuel Technology + 45 % of actual Brazilian light vehicle fleet and 90% of 2009 sales (huge market and growing fast)
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Green Polyethylene from Sugar Cane Environmental positive impact COLLABORATES TO REDUCES GREENHOUSE EFFECT AND GLOBAL WARMING 1 kg of Green PE produced 2 2.5 KG CO 2 Captured* * From cradle (sugar cane) to Braskem gate (polymerization) Preliminary Ecoeficiency Analysis Fundação Espaço Eco 2007/2008
Green Polyethylene Cycle FROM CRADLE TO CRADLE Sugarcane The sugarcane crop metabolizes the CO 2 to produce sucrose Ethanol CH3-CH2OH At the distillery, the sugar juice is fermented and distillated to produce ethanol Ethylene CH2=CH2 Through the dehydration, the ethanol is transformed in ethylene Very Favorable Ecoprofile* Captures and Fixes 2,5 t CO 2 /t PE Recycling The green polyethylene is 100% recyclable (Mechanical / Incineration) * Preliminary Ecoeficiency Analysis (From cradle to Braskem gate) Fundação Espaço Eco 2007/2008 Carbon capture The green polyethylene is transformed in final products in the same unities already existents Green PE [CH2=CH2] The ethylene is polymerized in polyethylene production unities (3 t PE/ha)
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Braskem green Polyethylene Unique product characteristics Oil Fully identical characteristics Sugar Cane Green PE can be recycled in the same stream already established for the petrochemical PE Green PE regrind can also be incorporated in the converter s production systems Petrochemical Polyethylene Green Polyethylene
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
To substantiate the Environmental Claims related to the Green PE use, Braskem defined a Program focus on Biobased Content and LCA Sustainable Choice Phase 1 Verification > x% biobased verified by ASTM D6866 Immediate! Verifier: Beta Analytic, ASTM D6866 Frequency: every production lot Results: routine test to demonstrate a controllable and substantive process (% of renewable carbon) > x% biobased certified by Vinçotte Phase 2 Renewable Source Certification Potential Certifier: Vinçotte Frequency: as required by the Certifier Results: 3rd party certification of the Green PE production management system (Braskem boundaries) Phase 3 LCA Certification Potential Certifier: SCS Frequency: as required by the Certifier Resultados: 3rd party certification of the Green PE Life Cycle (from cradle to Braskem gate) Leading Attribute: Renewable Source Leading Attribute: LCA
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Braskem green Polyethylene CODE OF CONDUCT Important alignment with Ethanol Suppliers Commitment to Brazilian Laws Land Use Agro - Environment Social Environmental zoning Agro-environmental Protocol Code of Conduct to Ethanol Suppliers The Code of Conduct is fully aligned with the Brazilian laws and regulations and with the principles of sustainable development In order to guarantee an international alignment with government and NGOs, Braskem requested a 3rd party validation
The green chemical projects rise Braskem as the largest industrial ethanol buyer, behind only from the top ethanol fuel distributors Brazilian Ethanol purchaser (thousand m³/year) 24,25% 18,52% 17,88% 3,67% 3,07% 2,01% 1,94% 1,93% 1,87% 1,74% 1,13% 1,09% 0,91% 0,87% Gold Petro Euro Tux Florida Rodo nova petro ETBE production: approx. 200.000 m3/year Green Ethylene: approx. 500.000 m3/year
Agenda HIGHLIGHTS VISION 2020 Sustainable Development: From a Project into a running Business Unit Plant Main Clients Products & Applications Sustainable Development extended to the whole supply chain Biobased Favorable LCA Recyclable Substantiation Program Code of Conduct Next Steps Moving beyond with new plant and products
Next Steps New Green PE Plants New product: Green Polypropylene First green PP Lab scale production and Biobased Verification Ongoing research to develop competitive go to market strategy Medium term commercialization
Green PE Business Augusto Morita Open Innovation augusto.morita@braskem.com.br