Drive bio-based chemicals for a low-carbon economy

Drive bio-based chemicals for a low-carbon economy

Applied by
BraskemBraskem

Summary

Developing a portfolio of bio-based chemicals and plastics to reduce emissions and support the global transition to a low-carbon and circular economy

Key resources

Context

The chemical industry plays a strategic role in enabling low-carbon solutions through innovation and material transformation. To address this, Braskem, a petrochemical company, has invested in the development of renewable alternatives using sugarcane ethanol as a bio-based input. This strategy aligns with Brazil’s competitive advantages in biomass availability, clean energy, and agricultural infrastructure. The initiative supports the company’s broader climate goals and contributes to the global bio-economy by offering drop-in solutions that reduce Scope 3 emissions across multiple value chains.

The implementation of bio-based solutions, produced from renewable raw materials, allows for atmospheric carbon absorption during biomass growth and supports the creation of sustainable carbon cycles. This contributes to climate mitigation efforts and aligns with circular economy principles and SDG 12 (Responsible Consumption and Production).

Location of the initiative: Triunfo (RS), Brazil, and global export markets; United States of America

Solution

Braskem has implemented a bio-based production strategy that replaces fossil feedstocks with sugarcane ethanol to manufacture renewable polymers and chemicals. The initiative began with the development of bio-based polyethylene, a drop-in solution with identical performance and recyclability to its fossil counterpart. Over time, the portfolio has been continuously expanded to include biobased polyethylene wax, solvents, and ethylene vinyl acetate (EVA).

Each product contributes to industrial decarbonization by replacing fossil-based inputs with renewable alternatives. By replacing fossil-based feedstock with renewable inputs, the solution enables atmospheric carbon absorption during the biomass growth phase, resulting in a negative carbon footprint for the material itself. For every ton of bio-based polyethylene produced, 2.12 tons of CO₂ equivalent are absorbed from the atmosphere. This absorption is quantified through radiocarbon (C14) analysis, following standards such as ASTM D6866 and ISO 16620-2. Since its launch in 2010, the adoption of this material has avoided the emission of over 8 million tons of CO₂ equivalent.

Bio-based wax is used in applications such as packaging, cosmetics, and coatings, offering a fossil-free alternative with traceable origin and certification. Bio-based solvents serve industries including cleaning, agrochemicals, and paints, replacing petrochemical inputs with lower carbon intensity options. The bio-based EVA is applied in footwear, automotive, and consumer goods, combining performance with environmental benefits.

Monoethylene glycol (MEG) is also being developed by a joint venture between Braskem and Sojitz, known as Sustainea, using proprietary technology and corn-based dextrose as feedstock in the United States. This enables drop-in substitution for fossil MEG in applications such as textiles, packaging, and automotive, while leveraging regional agricultural infrastructure and supply chains.

All products are designed to use certified ethanol sourced through the adopting company’s Responsible Ethanol Sourcing Program, which ensures compliance with environmental and social standards. This includes third-party audits and certifications such as Bonsucro and ISCC PLUS, which validate the sustainability of the feedstock and the traceability of the supply chain.

The company continues to invest in expanding production capacity, improving lifecycle performance, and developing partnerships to accelerate the transition to low-carbon materials. The initiative demonstrates how industrial innovation can deliver measurable climate impact while enabling sustainable growth across multiple value chains.

Impact

Sustainability impact

Climate

This initiative primarily targets Scope 3 emissions, with indirect contributions to Scope 1 and 2 through process optimization and renewable energy use. The most significant impact is observed in Scope 3, Category 1 (Purchased Goods and Services), as the initiative replaces fossil-based raw materials with bio-based feedstock and involves capital investments in low-carbon infrastructure.

Scope 1: Limited direct impact, as the polymerization process remains similar to conventional PE.

Scope 2: Indirect benefits from Brazil’s clean energy matrix, especially hydropower and bioelectricity from sugarcane bagasse, which reduce emissions associated with electricity consumption.

Scope 3:

Category 1 – Purchased Goods and Services: The replacement of fossil naphtha with sugarcane ethanol significantly reduces upstream emissions. Each ton of bio-based polyethylene absorbs 2.12 tons of CO₂ equivalent during biomass growth, verified through radiocarbon (C14) analysis following ASTM D6866 and ISO 16620-2.

Since its launch in 2010, the adoption of this material has avoided over 8 million tons of CO₂ equivalent emissions. While the GHG impact of other products such as bio-based wax, solvents, EVA, and MEG is still being quantified, they are expected to contribute to further reductions by displacing fossil-based inputs across multiple sectors.

In the case of MEG produced by Sustainea in the United States, the feedstock is corn-based dextrose, which will follow a different agricultural and energy profile compared to sugarcane ethanol in Brazil. Its climate impact is being assessed separately, considering regional conditions and supply chain characteristics.

The initiative supports downstream companies in reducing their Scope 3 emissions by integrating renewable, traceable, and low-carbon materials into their products. As regulatory and voluntary frameworks evolve, the ability to demonstrate carbon-negative material footprints may become a key asset in corporate decarbonization strategies.

Nature

The ethanol used in the production of bio-based polymers and chemicals is sourced from sugarcane cultivated in Brazil, primarily on degraded pasturelands, which avoids deforestation and contributes to soil recovery and carbon stock increase. Cultivation is concentrated in the Southeast region, over 2,500 km from the Amazon, minimizing direct deforestation risks.

Water use is optimized through fertigation systems, using recycled water such as vinasse and wastewater, reducing the overall water footprint. The initiative also supports bioelectricity generation from sugarcane bagasse, contributing to Brazil’s clean energy matrix and reducing reliance on fossil energy.

These nature-positive practices apply to the entire portfolio, including the planned production of monoethylene glycol (MEG) by Sustainea, which will follow the same sourcing principles and certification schemes.

Social

This initiative contributes to positive social outcomes by supporting rural development, job creation, and inclusive economic growth in regions where sugarcane is cultivated. The sourcing of renewable feedstocks is structured through certified supply chains that promote responsible agricultural practices and strengthen local governance. By leveraging existing farmland and avoiding land expansion, the initiative helps maintain territorial integrity and supports long-term community resilience.

Certifications such as Bonsucro and ISCC PLUS include social criteria and third-party audits that help ensure compliance with internationally recognized standards. The company’s Responsible Ethanol Sourcing Program also includes third-party audits and social criteria that increase exposure to fair labor conditions, community engagement, and respect for land rights. These practices align with just transition principles, ensuring that the shift to low-carbon materials also delivers social value. The initiative recognizes the strategic role of subnational governments and municipalities in implementing bioeconomy-aligned procurement and waste management policies, reinforcing local capacity and public service delivery.

Business impact

Benefits

The bio-based product platform — including polyethylene, wax, solvents, EVA, and MEG — is designed as a drop-in solution, allowing seamless integration into existing industrial assets without requiring major infrastructure changes. This compatibility reduces implementation costs and accelerates adoption across multiple sectors.

The initiative also enhances supply chain resilience by diversifying feedstock sources and reducing dependence on fossil inputs, which are subject to price volatility and geopolitical risks. Certified sourcing and traceability systems strengthen procurement practices and reduce exposure to reputational and compliance risks. The inclusion of MEG produced from corn-based feedstock in the United States further diversifies the bio-based portfolio and expands geographic reach, supporting business continuity and access to new markets.

It also supports market differentiation, enabling brand owners to meet growing consumer demand for sustainable products and comply with increasingly stringent environmental regulations. Through value chain engagement, the initiative helps customers achieve Scope 3 emissions reductions and circularity goals by offering certified renewable content and transparent traceability.

Costs

The main costs of the initiative are associated with investments in production technology, international certifications, and the development of traceable and sustainable supply chains. While the production cost of renewable products may be higher than fossil-based equivalents in some markets, this is offset by reputational benefits, access to premium segments, and potential regulatory incentives or subsidies.

Operating cost impacts are mitigated by synergies with existing industrial processes. The bio-based MEG, produced through a joint venture, illustrates how partnerships can reduce financial exposure and accelerate implementation. To minimize tradeoffs, Braskem focuses on continuous innovation, stakeholder engagement, and alignment with regulatory frameworks.

The cost profile is also shaped by the need for third-party certifications (e.g., Bonsucro, ISCC PLUS), which add to operational expenses but are essential for market credibility and regulatory alignment. Overall, the initiative balances upfront investment with long-term value creation through climate impact, market access, and supply chain optimization.

Impact beyond sustainability and business

Co-benefits

This initiative also contributes to broader societal and cultural dimensions. By promoting the use of renewable feedstocks sourced from sugarcane, the company supports rural development and job creation in agricultural regions of Brazil. The traceability and certification requirements encourage responsible land use and strengthen local governance practices.

In addition, the expansion of bio-based MEG production using corn-based feedstock contributes to regional economic development and leverages existing agricultural infrastructure, creating new opportunities for sustainable industrial growth.

Potential side-effects

The reliance on agricultural inputs may raise concerns about land use competition, especially in regions with limited regulatory oversight. Although sugarcane cultivation in Brazil is concentrated in areas far from sensitive biomes. To mitigate these risks, the company prioritizes certified sourcing, engages in landscape-level monitoring, and advocates for policy integration that balances energy and material uses of biomass.

Social risks such as informal labor, land tenure conflicts, and community exclusion are addressed through third-party audits and certification schemes that reduce exposure to non-compliance. The company also works with subnational governments and regional consortiums to align procurement and waste management strategies with bioeconomy goals, reinforcing inclusive governance and territorial stewardship.

For the U.S.-based MEG production, land use and social risks differ due to the regulatory and labor context of corn cultivation.

While the bio-based polyethylene is not biodegradable, it is fully recyclable within existing mechanical recycling streams, just like fossil-based plastics. Braskem actively supports and invests in recycling infrastructure and initiatives to ensure circularity. The management of post-consumer waste and the expansion of recycling infrastructure - especially for hard-to-recycle plastics - remain significant challenges, requiring coordinated efforts across the value chain, policy support, and technological innovation.

Implementation

Typical business profile

This initiative is most relevant for companies in the chemical, materials, and consumer goods sectors that rely on large-scale feedstock inputs and aim to reduce their carbon footprint through renewable alternatives. It is particularly applicable to businesses with existing industrial infrastructure capable of processing bio-based inputs and those at intermediate to advanced stages of their Net Zero or Nature Positive journeys. The model is especially viable in regions with robust agricultural supply chains and land governance, such as Brazil, where sugarcane is cultivated under well-established sustainability frameworks.

Approach

This initiative is particularly relevant for companies operating in sectors with high material intensity and significant Scope 3 emissions. It is best suited for businesses that have existing industrial infrastructure capable of processing drop-in renewable inputs and are seeking to transition toward low-carbon, circular production models.

Companies at intermediate to advanced stages of their Net Zero or Nature Positive journeys will find this approach actionable, especially those with commitments to reducing upstream emissions and improving product sustainability.

The dual-feedstock strategy — sugarcane ethanol in Brazil and corn-based dextrose in the U.S. — enhances flexibility and scalability, allowing companies to adopt renewable inputs aligned with regional supply chain strengths.

While the specific steps may vary depending on the company’s industrial setup, supply chain structure, and sustainability maturity, a general approach to adopting a drop-in renewable input strategy includes several key phases.

  • Companies should begin by assessing the compatibility of their existing infrastructure with renewable feedstocks, which typically require minimal modifications

  • Selecting regionally aligned inputs, such as sugarcane ethanol in Brazil or corn-based dextrose in the U.S. enhances scalability and supply chain efficiency

  • Establishing certified supply chains with third-party verification (e.g., Bonsucro, ISCC PLUS) to ensure market credibility

  • Updating product communication to reflect environmental benefits and monitoring Scope 3 emissions reductions through Life Cycle Assessment tools are critical for demonstrating impact

Stakeholders involved

The initiative was enabled through collaboration with a diverse set of external stakeholders. Agricultural suppliers in Brazil provide certified sugarcane ethanol under schemes such as Bonsucro and ISCC PLUS, ensuring traceability, environmental compliance, and social safeguards. Among the main suppliers are Raízen and Cosan, which operate large-scale ethanol production with sustainability certifications and advanced agricultural practices. The joint venture Sustainea, formed by Braskem and Sojitz Corporation, plays a strategic role in scaling renewable MEG production in the United States, using corn-based feedstock and proprietary technology co-developed with Topsoe AS. Government institutions have supported the broader bioeconomy agenda in Brazil, aligning industrial initiatives with national sustainability strategies.

The bio-based polyethylene plant in Triunfo (RS), inaugurated in 2010, benefited from institutional support and public-private collaboration, reinforcing the role of industrial policy and development mechanisms in enabling large-scale decarbonization. Customers and downstream users have played a key role in market adoption and co-development. Since the launch of the bio-based polyethylene platform, Braskem has established partnerships with pioneering companies committed to sustainability, including Tetra Pak, Toyota Tsusho, Shiseido, Natura, Acinplas, Johnson & Johnson, Procter & Gamble, and Petropack. These partners have incorporated bio-based materials into products such as personal hygiene items, household cleaning goods, food packaging, toys, and consumer goods. Academic and innovation networks have supported the initiative through lifecycle analysis, technology validation, and sustainability assessments, strengthening its scientific and regulatory credibility.

Key parameters to consider

The initiative combines mature and emerging technologies. Bio-based polyethylene production, launched in 2010 at the Triunfo (RS) plant, is a well-established industrial practice with proven performance, scalability, and market adoption.

The bio-based EVA and polyethylene wax, derived from the same bio-based feedstock, are also commercially available and applied in sectors such as footwear, automotive, cosmetics, packaging, and coatings. These products benefit from the same traceability and certification systems, and their production is integrated into existing polymerization infrastructure.

Bio-based MEG production via Sustainea is a more recent development, currently in the scale-up phase, with proprietary technology based on corn-derived dextrose in the United States. Implementation timelines varied: the polyethylene plant required several years of planning, construction, and certification, while MEG development involved multi-year R&D and pilot validation before reaching commercial investment stage.

Technical prerequisites include access to certified biomass (e.g., sugarcane ethanol or corn-based sugars), robust traceability systems, and compatibility with existing polymerization or chemical processing infrastructure.

Regulatory alignment is essential, particularly regarding bio-based product certification, carbon accounting methodologies, and trade compliance.

While no direct subsidies have been publicly confirmed, the initiative may benefit from indirect incentives such as carbon credit, preferential procurement policies, and tax benefits under frameworks.

Implementation and operations tips

Key challenges included securing certified renewable feedstock, adapting existing industrial processes, and building market confidence.

For companies interested in adopting bio-based materials, success depends on choosing solutions that integrate easily into existing operations, ensuring traceability, and engaging early supply chain partners. Collaboration with customers helped tailor applications and accelerate market entry.

Newer technologies like renewable MEG require careful planning for scale-up, site selection aligned with feedstock availability, and regulatory incentives. Long-term success is supported by continuous innovation, transparent communication, and alignment with evolving sustainability standards.

Going further

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