Braskem Idesa plans to boost ethylene and polyethylene (PE) capacity by 20% at its Ethylene XXI complex in Mexico by 2026 as it secures more ethane feedstock from imports, its CEO said.

“During the construction of Ethylene XXI, we already prepared for future expansion. Now the idea is to make a $200m investment to add 20% more PE capacity,” said Braskem Idesa CEO Stefan Lepecki, in an interview with ICIS, adding that the key adjustments will take place at the ethane cracker.

Click here to watch the ICIS interview with Stefan Lepecki, Braskem Idesa

This would involve adding a seventh cracker furnace which would enable greater ethylene production for PE, he added.

The Braskem Idesa cracker in Coatzacoalcos has 1.05m tonnes/year of ethylene capacity and downstream capacities of 750,000 tonnes/year of high density PE (HDPE) and 300,000 tonnes/year of low density PE (LDPE).

“We have always had extra capacity on the PE side, so we don’t need adjustments there,” said Lepecki, explaining that the 1.05m tonnes/year of PE capacity is a figure constrained by ethylene availability on the cracker side.

Enabling this capacity expansion is the construction of a new 80,000 lb/day ethane import terminal in the municipalities of Coatzacoalcos and Nanchital by Braskem Idesa and partner Advario, slated for completion by the end of 2024.

Construction started about two months ago with earth moving and now the companies are starting to put in piles for tanks. All the long lead time equipment for the project has already been purchased.

All the ethane imported from the terminal will go to Braskem Idesa’s Ethylene XXI complex, noted Lepecki, who added the capacity would be enough to supply 120% of its current ethane needs, thus enabling the cracker and PE expansion.

Braskem Idesa still plans to source ethane from Mexico’s state-owned oil and gas producer Pemex which currently supplies 30,000 bbl/day under a downwardly revised supply contract in 2021 as Pemex was unable to meet its prior supply commitment of 66,000 bbl/day.

After the start-up of the ethane import terminal, there would no longer be an obligation for Pemex to supply ethane, but Braskem Idesa would have right of first refusal to ensure it receives whatever ethane from Pemex is available.

The terminal serves as a form of insurance, as it is highly uncertain how much ethane Pemex will be able to produce in the coming years, Lepecki explained.

In the meantime, Braskem Idesa is receiving ethane from Pemex and through its ‘fast track’ ethane import project. With an expansion of this project by the end of 2022, it should be able to import about 32,000 bbl/day.

Carbon capture progress

Braskem Idesa plans to employ carbon capture as a key part of its decarbonisation push, its CEO said.

“We are working on an FID (final investment decision) next year on a project to collect the CO2 [from the Ethylene XXI cracker in Mexico] and prepare to transfer it to other businesses to use it,” said Lepecki.

The company has already been employing efficiency measures at the cracker and cogeneration plant at Coatzacoalcos, Mexico and has achieved a 5% reduction in carbon emissions in 2021 by using digital automation and advanced controls to optimise energy usage, through a partnership with Emerson, he noted.

The carbon capture and transfer project would be the second major step towards decarbonisation. In 2021, Braskem Idesa issued $1.2bn in sustainable or ‘green’ bonds, committing to a 15% reduction in carbon emissions by the end of 2028.

The third step on the decarbonisation journey will be to develop new chemicals that can be produced from CO2 feedstock, said Lepecki, noting that this is in a study phase. ■

The 42nd APLA Annual Meeting took place 12-15 November in Cancun, Mexico.

APLA Al Greenwood Cancun, Mexico

Braskem Idesa, Alcamare developing food-grade R-PE blend

Braskem Idesa and Alcamare are developing resins that are made with a mixture of recycled plastics and virgin polyethylene (PE) that should receive approval by the US Food and Drug Administration (FDA), allowing its use in higher-value applications such as food packaging, the CEO of the joint venture said.

The plastic could receive FDA approval by the first quarter of 2023, said Stefan Lepecki, CEO of Braskem Idesa.

He made his comments on the sidelines of the annual meeting held by the Latin American Petrochemical Association (APLA).

Alcamare has 16 collection centres throughout Mexico that have sophisticated sorting processes, which can provide Braskem Idesa with high-quality waste plastic, he said.

Braskem Idesa blends the waste plastic with its PE, which further increases the quality, Lepecki said.

Companies with valuable brands are eager increase the content of recycled plastic in their products to meet the expectations of their customers as well as their own sustainability goals. ■