The company is a leading integrated petrochemical company in Asean, spanning Vietnam, Indonesia, and Thailand, covering the entire chemical product range from upstream to downstream.
SCGC’s business consists of three main types of plastic resins: polyethylene, polypropylene, and polyvinyl chloride. The company aims to achieve its mid-term carbon neutrality goal by 2050 and net-zero greenhouse gas emissions by 2065.
SCGC said it is focusing on utilising resources efficiently in line with the circular economy principles. It aims to develop environmentally friendly polymer products, known as Green Polymer, with a production capacity of 1 million tons per year by 2030.
According to Suracha Udomsak, chief innovation officer and executive vice president of new business at SCG Chemicals Plc, the company's innovation direction focuses on high value-added products and services as well as green innovation. This includes environmentally friendly polymers according to the circular economy principles under the brand "SCGC Green Polymers", and innovations that address low carbon and decarbonisation technologies. The goal is to reduce greenhouse gas emissions by 20% from the 2021 baseline by 2030, he said.
Additionally, SCGC is accelerating the development of PLGA (polylactic-co-glycolic acid) or carbon-negative plastic polymers. Carbon dioxide gas is utilised as a starting material without releasing carbon dioxide during the production process.
PLGA polymers, which contain lactic and glycolic acids, have excellent oxygen and moisture barrier properties and are biodegradable both in natural environments and in the sea. This caters to both industrial needs and sustainable environmental practices, he said.
Tom van Aken, CEO of Avantium, stated that SCGC is an innovative organisation committed to sustainable business practices, which is a crucial factor for successful collaboration in developing PLGA polymers in the future.
The "Volta" technology, capable of converting CO2 into polymers using electricity, possesses exceptional properties for oxygen and moisture barrier performance and recyclability. This technology can be used as a sustainable raw material in ongoing business operations, he said.
It is expected that an increasing number of customers would be interested in this aspect and willing to join as partners, he said.
SCGC and Avantium, leading companies in the development of sustainable technology for chemical production and renewable feedstock, such as plant-based carbon and carbon from air, will collaborate to develop PLGA polymer or carbon-negative plastic polymers. Product formulation tests have been conducted by Norner AS, a global research and development centre for plastics, based in Norway," Tom van Ake said.
Most recently, SCGC has partnered with Avantium NV, an expert in renewable chemistry technology from the Netherlands, to advance innovations towards carbon neutrality. They have tested the use of carbon dioxide (CO2) as a starting material for producing PLGA polymers or carbon-negative plastics without releasing carbon dioxide gas during the production process. They are also preparing to develop a pilot plant with a production capacity of over 10 tons per year.
Meanwhile, SCGC is also collaborating with a Brazilian company in producing bio-ethylene-based bioplastics to reduce CO2 emissions.
SCGC Chemicals is partnering Braskem from Brazil to invest 20 billion baht in establishing a bio-ethylene-based bioplastics plant, utilising ethanol, to meet the sustainable demands of the global market. This initiative aligns with the government's BCG (Bio-Circular-Green) economic model, which aims to drive the country's development.
Caretaker Prime Minister Prayut Chan-o-cha, along with the Energy Minister Supattanapong Punmeechaow, endorsed the amendment of the law to allow the use of ethanol in industries other than alcohol and liquefied petroleum gas.
On June 13 this year, the Cabinet approved the proposed action plan to promote the use of ethanol in industries beyond its use as biofuel and alcoholic beverages. The focus is on the bioplastics industry, as agreed upon during the second BCG Model Development Committee meeting on October 31, 2022.