Greencol Taiwan Corporation Bio-MEG Plant, Taiwan, China

Key Data

Greencol Taiwan Corporation (GTC) announced that it planned to build a new plant to manufacture bio-mono ethylene glycol (bio-MEG) in Kaohsiung, Taiwan, in October 2010. The plant will have a capacity of 100,000t per year, and is expected to be completed by the end of 2011.

GTC, which will also operate the plant, is a 50:50 joint venture between Nagoya-based Toyota Tsusho Corporation (TTC) and Taipei-based China Man-made Fiber Corporation. Upon completion, GTC will become the first domestic manufacturer of bioethylene derivatives.

TTC will be responsible for the upstream and downstream activities of the new plant, handling the production and marketing of bio-PET. The company is planning to build a global integrated supply chain for bio-PET with the construction of the new plant.

Bio-MEG produced at the plant will be supplied to Asian PET manufacturers. TTC will then off-take the PET manufactured on a tolling basis and market it to companies in Europe, Japan and the US. It will also market bio-PET based textiles for car interiors and develop bio-PET based bottles with customers. The company aims to increase the demand for bio-PET based sustainable products around the world.

"The plant will have a capacity of 100,000t per year, and is expected to be completed by the end of 2011."

Process technology

New Jersey-based Petron Scientech was selected as the process technology provider for the plant. The company specialises in commercially tested technologies for producing basic chemicals for industrial use.

The plant will use Petron's ethanol to bio-ethylene technology. Petron will also be responsible for providing design and other services during and after construction.

Feedstock

The new plant will use bio-ethanol produced from sugar cane as feedstock. Using ethanol for the production of PET is more economical compared to petroleum. Ethanol produces high-grade ethylene and has similar properties as that of petroleum-based ethylene.

Plants that use ethanol can achieve incremental expansion of ethylene capacity at lower costs. In addition, the use of ethanol does not produce any of the by-products that are usually produced from petroleum feedstock.

The bio-ethanol required will be supplied by Petrobras, which signed a ten-year supply agreement with TTC in October 2010. Under the agreement, Petrobras Biocombustível, a subsidiary of Petrobras, will supply the new plant with 143,000m³ of ethanol annually. The supply agreement is worth $820m and is the first long-term agreement signed by Petrobras.

"Bio-ethanol will be supplied by Petrobras, which signed a ten-year supply agreement in October 2010."

Products

PET contains 70% PTA and 30% MEG. In Bio-PET, the 30% of MEG is replaced by bio-MEG made from sugar cane.

Bio-PET is similar in quality to petroleum-based PET, but is more environmentally friendly. In the form of bio-ethylene oxide, it is used as an intermediate chemical for the production of a range of surfactants. As bio-ethylene glycol, it is used in antifreeze and PET pellets.

Contractors

North Carolina-based Chemtex International was awarded the engineering, construction and procurement contract for the plant. Biofuels and green downstream technology is a key business area of Chemtex. The company will build the plant in partnership with Taipei-based Fu-Tai Engineering Company.

Market growth

PET is used in a variety of applications ranging from beverage bottles, food packaging films, textiles and vehicle interiors.

"Bio-PET is similar in quality to petroleum-based PET, but is more environmentally friendly."

In 2009, global demand for PET was 45 million tons, and is expected to increase at an annual rate of 8% in the next five years. By 2015, global demand for PET is forecasted at 60 million tons per year.

However, demand for sustainable alternatives to petroleum-based PET is growing steadily. At present, only 200,000t of bio-PET is available in the market each year. Global demand for bio-PET is estimated to rise to 2.25-3 million tons per year, and is expected to account for 5% of the global market. TTC expects to tap into the projected gap in demand with the production and marketing of 200,000t of bio-PET.

Greencol Taiwan Corporation's new bio-mono ethylene glycol plant is located in Kaohsiung, Taiwan.

The new plant will produce 100,000t of bio-MEG a year.

With the construction of the new plant Toyota aims to establish a global integrated supply chain for bio-PET.

Global demand for bio-PET is estimated to reach 60million tons a year by 2015.