What were some of Braskem’s highlights over the past year?

In 2023, Braskem’s annual production capacity reached 12 million t of chemicals and 9.3 million t of thermoplastics resins (ethylene, caustic soda, chlorine, EDC, and other chemicals). Despite a 7% decrease in average utilization rates in Brazil due to lower global demand and a planned maintenance shutdown at our Bahia Complex, we invested around US$754 million focusing on expanding bio-ethylene capacity by 30% in Rio Grande do Sul, setting up a desulfurization unite to reduce emissions and for acquiring essential inputs like catalysts.

We also strengthened our leadership in sustainability by launching new products made from recycled materials and expanding the use of renewable sources in production. One of 2023’s highlights were expanding our renewable polyethylene capacity branded as “I’m Green.” These are produced from sugarcane-based green ethylene and offer the same technical properties as traditional polyethylene but with the advantage of being made 100% from renewable sources. The industrial unit for this product in Rio Grande do Sul reached a capacity of 260,000 t/y. How would you assess the current state of the petrochemical industry and the main tailwinds and headwinds impacting Braskem’s activities?

Between 2020 and 2023, the global markets for polyethylene (PE) and polypropylene (PP) experienced a significant oversupply. Looking ahead, there are still uncertainties around the pace of margin recovery. However, in Brazil we expect demand for major resins to increase by 7% in 2024, which is a strong improvement over 2023’s modest 2%, bringing total demand to 5.84 million t/y.

Demand remains high for petrochemical products in packaging, construction and automotive sectors, driving Braskem to pursue sustainable solutions that align with evolving market needs and environmental regulations. What challenges and opportunities do you see within the Brazilian petrochemical industry?

One key area of opportunity lies in the rising demand for petrochemical products derived from renewable sources, aligning with global sustainability trends. However, there are also challenges, particularly in securing raw materials like naphtha and ethane. Brazil has a limited economic supply, making companies rely on expensive naphtha imports, also subject to international oil price fluctuations. Additionally, the high cost of natural gas affects Brazil’s competitiveness. How has Braskem’s business evolved from traditional operations to include bio-based polymers?

Innovation is at the heart of our strategy to become a leader in sustainable development within the chemical and petrochemical sectors. A core element of this approach is developing new technologies, products, and business models that consider the whole value chain.

We have been focusing on circular design with the help of our Design for Environment methodology through Cazoolo, a co-creation hub dedicated to creating more sustainable packaging solutions. Additionally, we launched the Ready Packaging platform to expand its reach, making it easier for end-producers to access eco-friendly packaging. On the other hand, Braskem also conducts Life Cycle Assessments (LCA) and pursues certification to ensure compliance with international standards. For instance, we have the Wenew resins, which, according to an LCA study, showed a 48% reduction in carbon emissions compared to conventional virgin resins.

Another highlight is the Biomass project in Brazil, which replaces fossil fuels with biomass steam and is expected to cut 150,000 t of CO2 annually and promote socio-economic development by supporting the eucalyptus supply chain. The first phase of the Biomass project began operations in November 2023, resulting in a direct reduction of around 115,000 t of CO2e for the year. What is the significance of the partnership with Lummus regarding electrified cracking heaters for decarbonization?

Partnering with Lummus to develop electrified cracking furnaces is a significant step toward sustainability and decarbonizing the petrochemical industry. The technology integrates all commercially demonstrated components and employs an ideal heat flow profile, resulting in an extended lifespan for the radiation coil and improved operational durability. Additionally, decoking can be carried out in unitary cells, eliminating the need for backup furnaces.

This initiative is part of Braskem’s broader climate goals, which include reducing greenhouse gas emissions by 15% by 2030 and achieving carbon neutrality by 2050. Decarbonization is critical for ensuring a sustainable future in petrochemicals, and the partnership with Lummus positions Braskem to lead this transformation by promoting a more sustainable business model committed to environmental excellence.