Brazil’s Braskem to produce polyethylene from sugarcane ethanol on a commercial scale

In Brazil, the country’s largest petrochemicals company, Braskem, announced that it will invest $150 million in the production of polyethylene from sugarcane-based ethanol. The 200 Kty capacity plant will be operational in late 2009 following a successful experience with a pilot plant that commenced polyethelene production in June.

The report continues a trend of major company entries and expansions in ethanol.

Last week, state oil company Petrobras announced that they would construct a pilot cellulosic ethanol plant by 2010. The pilot plant would produce 740 gallons of ethanol from 10 tons of sugar bagasse.

Also last week, Brazilian conglomerate Odebrecht announced it will invest $581 million, via its ETH Bioenergia subsidiary, in three ethanol plants in Mato Grosso do Sul state. The plants will have a combined capacity of 15 million tons of sugarcane. The plants will manufacture sugarcane, ethanol and will produce energy from sugarcane bagasse.

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