Avatium and Thailand-based SCG Chemicals (SCGC) have entered a collaboration to accelerate the market adoption of FDCA and PEF in Asia.
The Dutch renewable chemistry company officially opened its furandicarboxylic acid (FDCA) commercial plant last week on Oct. 22. The facility, located in Delfzijl, the Netherlands, uses catalysts to convert plant-based sugar into FDCA, the key building block for a wide range of plant-based chemicals and plastics such as polyethylene furanoate (PEF), a 100% plant-based and recyclable plastic. PEF applications include polyesters, polyamides and polyurethanes, as well as coating resins, plasticisers, and other chemical products.
Avantium and SCGC now plan to put together a joint team that will work with local and global brands to increase volume commitments for FDCA and PEF orders in Asia. This effort, alongside validation of market potential and further development of FDCA and PET applications in the region, is intended to prepare the ground for ‘future large-scale production in Asia’, the partners said in a statement.
“Avantium's expertise in green business technology, along with SCGC’s presence in Asia, creates a solid basis for our collaboration,” said Dr. Suracha Udomsak, Chief Operations and Innovation Officer at SCGC. “This initiative aligns with our strategy to grow our eco-friendly business and addresses the rapidly increasing demand for sustainable plastics in the Asian market.”
According to MarketsandMarkets research, Asia Pacific was the fastest growing market for PEF as measured by value in 2022. China is the largest PEF market in the region and is posed to witness the highest growth.
Avantium is looking for offtakers in Asia as its flagship plant is set to produce 5,000 tonnes of FDCA per year. The company has already established supply agreements for PEF or its building block FDCA, including Helios, Henkel, and Carlsberg. The conditional offtake agreements represent 95% of the capacity of the flagship plant for the first five years of operation.
Avantium and SCGC are long-term strategic partners. SCGC is a cornerstone investor in Avantium through its subsidiary SENFI Ventures. The companies also collaborate on CO2-based polymers technology.