Braskem Considers Entry Into The Sustainable Aviation Fuel Market
Date
11/26/2024 5:00:25 AM
(MENAFN- The Rio Times) Braskem, a major petrochemical player, is exploring entry into the Sustainable Aviation fuel (SAF) market. The company is evaluating investment options, with a promising project under consideration in southern Brazil. This move reflects Braskem's commitment to diversifying its product portfolio and embracing sustainable technologies.
Alongside its SAF ambitions , Braskem is pursuing several growth strategies. The company has reopened discussions with Petrobras regarding natural gas supplies for a potential expansion of its Rio de Janeiro petrochemical complex. This expansion could significantly boost Braskem's polyethylene production capacity, which currently stands at 540,000 tons annually.
In response to market demands, Braskem plans to increase PVC production in Alagoas and Bahia states. This decision aligns with rising demand from Brazil's new sanitation regulatory framework. The company expects to complete this capacity expansion within 18 months.
Braskem faces industry challenges, including recent cash consumption of R$ 758 million ($133 million) from January to September. However, the company anticipates a gradual improvement in the petrochemical cycle and expects to achieve positive recurring cash generation by 2025.
To protect domestic industry interests, Braskem has requested reviews of anti-dumping tariffs on imported PVC and polyethylene. These measures aim to stimulate new investments and support the Brazilian petrochemical sector's competitiveness.
As Braskem navigates these diverse initiatives, from sustainable fuels to capacity expansions, it demonstrates a strategic approach to growth and adaptation in the evolving petrochemical landscape.
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