Japan’s MGC to fund US biomass-based plastic start-up

: Biomass, Petrochemicals
25/03/13

Japanese petrochemical producer Mitsubishi Gas Chemical (MGC) announced on 12 March that it decided to invest an undisclosed value in a US biomass-based plastics start-up ReSource Chemical.

ReSource Chemical is developing technology to generate furandicarboxylic acid (FDCA), which is a raw monomer used to produce plastic polyethylenefuranoate (PEF), from wooden biomass-based lignocellulose. PEF is expected to replace polyethylene-terephthalate (PET) once a reasonable production method is established, as PEF is likely to have stronger heat-resilience and durability as well as lower gas-transmission rate and moisture permeability than PET.

US venture capital funds Khosla Ventures, Fathom Fund and Chevron Technology Ventures and other individual investors also plan to finance ReSource Chemical with MGC. ReSource Chemical will raise $15mn in total. The funds will be used to build a pilot plant to manufacture FDCA.

MGC aims to procure furoic acid, which is an intermediate product in ReSource Chemical's FDCA production process. MGC said furoic acid is not currently in use, but the firm will explore potential usage of this biomass-based feedstock in future.

Japanese companies have attempted to develop biomass-based plastics for decarbonisation. Domestic trading house Mitsui plans to explore producing 400,000 t/yr bio-PET in the southeastern region of the US, targeting to start output during 2025-2026.

By Nanami Oki

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25/11/11

Braskem 3Q sales down, eyes feedstock switch

Sao Paulo, 11 November (Argus) — Brazilian petrochemical company Braskem faced a turbulent third quarter in 2025, marked by operational challenges, strategic uncertainty and efforts to reposition its feedstock strategy. Menwhile, the company is navigating a potential restructuring and sale while managing the fallout from the closure of its chlor-alkali operations in Alagoas and ongoing low utilization rates across its production assets. Braskem completed technical studies on using liquefied petroleum gas (LPG) derivatives — specifically propane and ethane — sourced from Argentina's Vaca Muerta shale formation as a feedstock, the company said during its third quarter earnings call. Preliminary data suggest a potential cost reduction of $110/t compared to petrochemical naphtha, which is currently used in several of Braskem's facilities. The company already uses propane from Vaca Muerta at its Copesul plant in Triunfo, Rio Grande do Sul, where trials are underway to assess long-term viability. Feedstock selection will depend on pricing and logistics, with other Argentinian raw materials also under evaluation, chief executive Roberto Ramos said. The shutdown of Braskem's chlor-alkali plant in Alagoas between September and October led to layoffs and added pressure to its vinyls operations. To stabilize this segment, Braskem announced a strategic agreement with US-based Olin for the supply of ethylene dichloride (EDC). The deal supports Braskem's chlor-alkali and vinyl asset restructuring in Brazil. While supply volumes were not disclosed, the company expects the partnership to enhance competitiveness and sustainability in its PVC operations. Olin was selected for its cost-efficient EDC production, based on US shale gas ethane, and favorable logistics. Ramos cited these factors as decisive in formalizing the agreement. Average utilization rates across Braskem's petrochemical complexes fell to 65pc in the quarter, down 9 percentage points from the subsequent quarter and 8 points from a year prior. The decline was driven by scheduled maintenance at the Rio de Janeiro complex and a strategic reduction in naphtha-based production amid weak demand. Operational idle time costs the company approximately $60mn per quarter, Institutional relations director Rosana Avolio estimated. Braskem Idesa PE sales fall In Mexico, PE sales through the Braskem Idesa joint venture fell by 30pc year on year to 146,000t, mostly because of lower product availability, while spreads in the international market remained stable. Braskem Idesa's plant utilization rate fell to 47pc, down by 27 percentage points from a year earlier, because of a scheduled maintenance shutdown and reduced ethane supply from Mexico's state-owned Pemex, which fell to 11,300 b/d from 28,900 b/d in the previous year. The company's new ethane terminal, Terminal Quimica Puerto Mexico (TQPM), began supplying ethane to Braskem Idesa. TQPM, still in the commissioning phase, received approximately 11,300 b/d. The ethane supply from TQPM the Braskem Idesa plant is now operating above nominal capacity, which should support Ebitda growth in the coming quarters, Ramos said. Resin sales, prices down Braskem's Brazil resin sales fell by 9pc to 787,000t in the third quarter from a year before, with volumes also down in the US, Europe, and Mexico. International resin price references during the period were lower, impacting the profitability of its domestic sales, Braskem said in its preliminary third-quarter production and sales report. The company posted a R26mn ($4.9mn) loss for the quarter, narrowing from a R592mn loss in the third quarter of 2025 and from a R267mn loss in the second quarter this year. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

State AGs: Groups' recycling work 'anticompetitive'

25/11/07

State AGs: Groups' recycling work 'anticompetitive'

Houston, 7 November (Argus) — A multistate coalition of US state attorneys general led by Florida are accusing environmental organizations of potentially violating state and federal antitrust laws by coordinating with large US corporations to impose "anticompetitive recycling practices." In a 29 October letter sent to the US Plastics Pact, The Consumer Goods Forum, and the Green Blue Institute, Florida attorney general James Uthmeier and attorneys general from Texas, Iowa, Nebraska and Montana said that by pushing major corporations to "align on restrictive plastic production and packaging standards" the environmental organizations are taking actions that could "unlawfully restrain competition, increase costs, and limit consumer choice." The letter states that by "collectively dictating what materials are deemed ‘recyclable'" the groups have driven up prices for consumers. "Radical environmental activists do not have the right, nor the avenue, to suppress business operations in our market," Uthmeier said in a separate statement, claiming the three groups were hindering the states' economic prosperity by coordinating business behavior, which he said would violate Florida's antitrust laws. The letters ask the environmental groups to explain how their "coordinated market activities" comply with state and federal antitrust laws, providing supporting documentation. The environmental groups targeted by the AGs promote voluntary packaging standards for major retail brands, offer recyclability guidelines and design frameworks that support sustainability. The Consumer Goods Forum said it has received the letter and will cooperate fully with the attorneys general to address the questions raised. The group said its programs are voluntary, transparent, and backed by antitrust compliance measures. The US Plastics Pact said it is reviewing the letter with legal counsel and remains confident its work complies with all applicable laws. Green Blue Institute has not responded to a request for comment. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cop: Enviroment groups slam Brazil's TFFF

25/11/07

Cop: Enviroment groups slam Brazil's TFFF

Belem, 7 November (Argus) — Over 100 international environment groups have criticised Brazil's Tropical Forests Forever Facility (TFFF), pointing out flaws to the plan, formally launched this week just ahead of the UN Cop 30 climate summit. Brazil, which has a "very strong policy of public participation when drafting climate policies", did not follow that process when designing the fund , Victor Menotti, a senior fellow at environmental think-tank Oakland Institute, told Argus . Menotti is also the US co-ordinator of a global climate justice campaign. The organisations criticising the TFFF say that the fund does not address the impacts of agriculture, mining or hydrocarbon extraction — adding that these are the "true structural causes of forest destruction". And TFFF's profitability is not guaranteed, the groups said. They also slammed the fund for being a "greenwashing mechanism... and a distraction from the effective fight against deforestation". They raised concerns that "developing countries and civil society will have no decision-making power" on the fund. TFFF would help pay around 80 developing countries $4/hectare (ha) for preserved tropical forests, Brazil has said. "If you own land and you're deciding whether to grow soy or [farm] cattle, is $4/ha enough?", Menotti said. "I don't know where they got that figure." TFFF's main investment plan comes from emerging country bonds, he added. "So that means [individual people] are paying for it." Several countries have endorsed TFFF so far , with Norway, Indonesia and France pledging a combined $4.5bn, Brazilian government officials said on Thursday. Colombia pledged $250mn, the Global Strategic Communications Council said. And Brazil pledged $1bn to the fund in September . Portugal and the Netherlands made smaller contributions to cover the fund's operational costs. Germany has said it will contribute to the fund, but is yet to announce how much. Deforestation will be a key topic at Cop 30, which begins on 10 November in Belem, northern Brazil. The issue was addressed at the Cop 26 and Cop 27 summits, in 2021 and 2022, but beyond the pledges, the EU's deforestation regulation is most likely to have direct consequences, particularly for agricultural commodity producers. By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Braskem's third-quarter Brazil resin sales fall

25/10/30

Braskem's third-quarter Brazil resin sales fall

Sao Paulo, 30 October (Argus) — Brazil-based petrochemical producer Braskem's domestic resin sales fell by 9pc in the third quarter from a year before, with volumes also down in the US, Europe, and Mexico. International resin price references during the period were lower, impacting domestic sales' profitability, Braskem said in its preliminary third-quarter production and sales report. This effect was offset by the positive impact of antidumping measures applied over polyethylene (PE) imports from the US and Canada during the quarter and the company's strategy to supply the Brazilian market. Resin sales in Brazil reached 787,000 metric tonnes (t) in the third quarter, down by 9pc from 869,000t a year earlier. Braskem's domestic resin sales fell by 5pc from the second quarter, driven by lower PE sales due to increased imports in July-August and weaker polypropylene (PP) sales amid reduced demand in the Brazilian market. Domestic chemical sales totaled 700,000t in the third quarter, 2pc lower than a year earlier and 11pc higher than in the second quarter. The increase was mainly driven by higher paraxylene sales following the normalization of operations after a planned shutdown, as well as increased demand for ethylene and propylene due to resumed customer operations. Higher demand for gasoline, a result of greater product availability, also contributed. In Mexico, PE sales through the Braskem Idesa joint venture fell by 30pc year-on-year to 146,000t, mostly because of lower product availability, while spreads in the international market remained stable. Braskem Idesa's plant utilization rate fell to 47pc, down by 27 percentage points from a year earlier, because of a scheduled maintenance shutdown and reduced ethane supply from Mexico's state-owned Pemex, which fell to 11,300 b/d from 28,900 b/d in the previous year. But the company's plant utilization rate rose by 3 percentage points quarter-on-quarter. Additionally, the company's new ethane terminal, Terminal Quimica Puerto Mexico (TQPM), began supplying ethane to Braskem Idesa. TQPM, still in the commissioning phase, received approximately 11,300 b/d. Third-quarter PP sales reached 495,000t, according to consolidated figures for the US and Europe. That is a 1pc drop from a year earlier and a 2pc decrease from the previous quarter due to lower demand in both regions. Braskem's combined US and Europe PP plant utilization hit 79pc of capacity, up by 3 percentage points year-on-year and an increase from 74pc in the prior quarter. Braskem will report full third-quarter results on 10 November, it said. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Westlake sees rebounding PVC demand in 2026

25/10/30

Westlake sees rebounding PVC demand in 2026

Houston, 30 October (Argus) — Texas-based housing and construction product manufacturer Westlake expects global polyvinyl chloride (PVC) demand and prices to rebound in 2026, as lower interest rates in the US and capacity cuts in Europe could fuel stronger market conditions. The US Federal Reserve cut its target interest rate by 50 basis points between its September and October meetings, raising hopes for moderately stronger housing demand next year. Housing is a critical derivative market for PVC producers. Additionally, capacity reductions in Europe will help balance global PVC supplies, which remained persistently oversupplied in recent years because of new capacity in China. Poor housing demand this year contributed to nominally lower sales revenue in Westlake's housing and infrastructure segment during the third quarter. Revenue slumped by 1pc to $1.09bn compared with the same three-month period last year. Strong municipal demand for PVC pipes for water treatment systems supported a 1pc increase in the company's infrastructure productions segment sales revenue to $163mn, which was countered by a 1pc decrease in housing product sales at $928mn during the third quarter. Data for US construction spending, housing permits issued, and housing starts is delayed by the ongoing partial partial federal government shutdown, which impacts the US Census Bureau's ability to publish monthly statistics. The latest data from August showed an 11pc yearly drop in privately-owned housing permits issued and a 6pc drop in housing starts. The latest Census Bureau construction spending data, released for July , showed a 5.3pc year-to-year drop in private residential spending and a 10pc drop in commercial spending. Sales from Westlake's performance and essential materials (PEM) segment — which includes olefins, vinyl chemicals, polyetheylene, and epoxies — also declined during the third quarter, falling by 13pc to $1.74bn. Westlake said dampened demand in Europe and Asia limited PEM sales during the quarter. Planned turnarounds and plant outages contributed to the year-over-year sales decrease. Overall, Westlake reported a $782mn loss during the third quarter, down from a $108mn profit in the third quarter of 2024. Total revenue slipped by 9pc to $2.84bn for the quarter. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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