Could you provide a quick update on what Braskem’s positioning is right now given the potential increase of Petrobras' share in the company?
The current situation at Braskem involves a public process by our shareholders in Brazil to determine their future state with the company, specifically whether they wish to retain ownership or explore other options. This is a shareholder-driven process. The company’s response to this situation has been formal, with notices to the market reflecting the nature of these discussions.
What is the single most important innovation that you would want to read about in our feature?
The most exciting innovation for me is the progression of alternative recycling technologies. Braskem's foundation in 2002 was aligned with the United Nation’s Sustainable Development Goals, leading us into renewable feedstocks and subsequently into our bio-based business. Our sustainability efforts, particularly in Brazil, take advantage of the country's vast agribusiness and underutilized arable land for sustainable practices. Our focus on environmental impact has led us to establish three main pillars since 2020: s and social responsibility and human rights, combating climate change, and the elimination of plastic waste, emphasizing recycling and reuse. Our interest in alternative recycling technologies is due to the complexity and broad technological deployment needed, presenting a unique set of challenges and opportunities for innovation and investment.
Given your partnership with Shell, could you explain your approach to making polypropylene circular?
Polypropylene, being the second largest thermoplastic consumed globally, finds applications in various industries, from medical and food packaging to automotive and consumer products. Our strategy to make polypropylene circular involves leveraging large-scale systems to control and recycle plastic waste. We collaborate with Nexus Circular, an innovative company that diverts hard-to-recycle plastics from landfills, Braskem has long-term off-take agreements with Nexus Circular, to process mixed plastic waste into pyrolysis oil. This partnership with Nexus Circular, along with other partnerships, allows us to convert this oil back into polypropylene.
Shell is supplying us with bio-attributed and bio-ciruclar propylene feedstocks which replaces hydrocarbon feedstock with a bio-attributed and bio-circular feedstock in its propylene product, and has the potential to reduce greenhouse gases and contribute to a circular economy.
Voices in the advanced recycling technologies space say all the petroleum-based feedstock that is needed for plastics has already been extracted from the ground. Does this mean that there is a slow cannibalization of the plastics industry happening and will you see more petrochemical companies become technology companies?
The chemical industry is inherently a technology-driven field, with major companies capable of deploying significant capital and research resources to solve complex challenges. The current scale of sustainable and recycled products is relatively small, but there is a critical need to scale these solutions to replace fossil materials with circular alternatives. This necessitates a shift in focus towards technology and innovation, particularly in process and product technology.
Braskem, along with other major chemical companies, is actively investing in renewable solutions and developing new technologies to drive this transition. The future will likely see a blend of in-house technology development and strategic collaborations to advance the adoption of sustainable practices across the globe.
What is the biggest challenge facing Braskem America today, and how is the company addressing it?
Our foremost challenge lies in developing the demand profile for sustainable products, necessitating a value chain solution where every participant from pellet makers to converting manufacturers to brand owners aligns with sustainable solutions. This alignment is crucial as the industry grapples with a lack of regulatory structure to guide the entire value chain toward sustainability. While initiatives like the Inflation Reduction Act (IRA) in the U.S. represent a positive step, especially in funding sustainable projects, they are viewed as too narrow as they do not address circularity projects. We believe in leveraging technology and innovation to build sustainable solutions, like bio-based polyethylene and polypropylene, which require a long-term view and a commitment to developing new technologies and infrastructures that support circularity and carbon sequestration.
How does Braskem view its role in advancing sustainability and addressing the demands for circular solutions?
Our approach to sustainability is rooted in innovation and a commitment to advancing circular solutions, which involves more than just the development of sustainable products; it encompasses creating a systemic change in how products are recycled and reused. Our efforts extend into partnerships and projects that demonstrate a tangible commitment to sustainability, such as the collaboration with Nexus Circular and the REMADE Institute, which focus on transforming plastic waste into new materials and advancing bio-based solutions in sports and beyond.
On the note of sports, let us say we are watching a Philadelphia Eagles game at Lincoln Financial Field in 3 years time. What innovations and progress would you be telling me about?
By 2027, we envision a world where sustainability efforts are fully realized and integrated into everyday experiences, including at the Eagles game. We aim to have sustainable materials, like bio-EVA and bio-based polyethylene, utilized in sports equipment, apparel, and infrastructure, creating a tangible connection between consumers and sustainable practices. This future scenario sees sustainability permeating all aspects of life, from the field to the stands, where our technologies and materials contribute to a greener, more circular economy. Our vision extends beyond branding, focusing on the global adoption of sustainable practices and the collective movement towards a more sustainable world, symbolized by the widespread use of recycled and bio-based materials in high-visibility platforms like sports.
