Bio-based polyethylene and MEG: Feedstocks
Why cheap cane ethanol is the whole business case
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.Bio-PE is ethanol in plastic form: about 1.7-1.75 t of ethanol per t of ethylene (indicative). Ethanol cost is most of the cash cost, so Brazilian cane ethanol makes Braskem viable. Fossil PE from Middle East ethane or US shale gas is far cheaper, so bio-PE only competes where buyers pay for bio-based content or carbon reduction.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Su Sugar | about 2.2 m3 ethanol, about 26-28 t of cane per t ethylene (indicative) | carbon source | about 70-80% of cash cost (indicative) | indicative; sugar tile |
| Mz Maize | about 2.2 m3 ethanol per t ethylene (indicative) | possible carbon source in the US or India | similar | indicative |
| Energy (steam for dehydration) | not published | endothermic dehydration and purification | small to moderate (indicative) | indicative |
Who is low-cost, and why
Fossil PE from Middle East and US ethane is lowest cost; naphtha-based Asian PE is next; bio-PE from Brazilian cane ethanol sits above both, at a premium of roughly 30-50% (indicative (unverified)). Indian ethanol at administered prices would need to be cheaper than its fuel value to compete (indicative).
Raw materials on the commodity table
Su SugarWhat it is made into
| Product | Note |
|---|---|
| LLDPE Polyethylene (LDPE, LLDPE) | bio-PE is a drop-in substitute |
| HDPE High-density polyethylene | bio-HDPE for bottles and caps |
| MEG Monoethylene glycol | bio-MEG for partly bio-based PET |
| PET PET resin | bio-MEG gives about 30% bio content |