Ethylene is used as a feedstock for many downstream chemical products. It is one of the largest bulk chemicals and is extensively used in the production of plastics. Due to the wide-scale applications of ethylene, its demand is likely to continue to rise in the coming years. Traditionally, ethylene is manufactured from petroleum derivatives, which is resulting in the depletion of fossil fuels. To overcome this problem, biomass feedstock is considered a reliable alternative for the manufacturing of bio-based ethylene. Bio-ethylene is produced from bioethanol which is widely made using ligno-cellulose biomass such as wood, sugarcane, and corn-starch, thus reducing the dependency on petroleum derivatives, as well as on fossil fuels. Bio-based products produced using local resources are also capable of cutting down a country’s dependency on fossil fuel imports and thereby stimulate the domestic economy.
NECESSITY FOR DIMINISHING DEPENDENCY ON FOSSIL FUELS TO BOOST THE BIO-BASED ETHYLENE DEMAND IN THE GLOBAL MARKET
Further, bio-based ethylene reduces greenhouse gas emissions both during production and use. However, the environmental performance of bio-ethylene principally depends on the regional conditions of the production of bioethanol, emission of greenhouse gases caused due to the changes in land usage, and conditions of the necessary energy systems. However, bio-based ethylene can significantly decrease the environmental impact of chemical industries. Thus, the urgent need to reduce the dependency on fossil fuels and rising awareness regarding environmental sustainability are bolstering the bio-based ethylene market growth. can be considered to grow exponentially over the coming years. Bio-based ethylene and petroleum-based ethylene are chemically identical, and thus, the existing production capacities and equipment can be used to produce other downstream products, including plastics as usual, without having much impact on the existing market, which is another factor supporting the market growth.
The key players providing bio-based ethylene market are Braskem SA, The Dow Chemical Company, LyondellBasell Industries Holdings B.V., SABIC, Oxy Low Carbon Ventures (OCLV), among others. Companies in this market have been continuously focusing on strategies such as product developments, plant expansions, and mergers and acquisitions to expand their footprint worldwide and fulfill the growing demand of the market. For Instance, in February 2021, Braskem is expanding its production capacity of green ethylene which is the principal feedstock obtained from sugarcane ethanol used to produce renewable resins. These materials can consequently claim to capture greenhouse gas CO2. The green ethylene is produced at the company’s plant in Triunfo, the Rio Grande do Sul, whose capacity will be expanded from the current 200 kton/year to 260 kton/year. The expansion project was budgeted at US$61 million.
