Braskem America and Encina to Collaborate on the Production of Recycled Polypropylene

Braskem and Encina Development Group plan to develop a long-term relationship enabling the production of circular, recycled polypropylene (PP). Encina is a company focused on transforming plastic waste into renewable chemicals and renewable fuels for the circular economy.

Encina's technology is able to produce renewable chemicals made from post-consumer plastic and the company is targeting to break ground on a new facility in the second half of 2021. Once completed, the facility is targeted to process 175,000 tons of plastic waste, converting it into more than 90,000 tons of recycled chemicals per year. The plant will be designed to expand to 350,000 tons of incoming plastic waste in future phases. Encina's new facility will leverage its proprietary technology that economically extracts chemicals from plastic through catalytic pyrolysis. The process utilizes mixed plastics from post-consumer sources.

As part of the collaboration, Braskem will work closely with Encina to develop the necessary logistics, product quality and certifications for a recycled propylene feedstock that Braskem will use in the production of recycled PP materials in applications such as food packaging, consumer and hygiene products. The parties announce their intent to develop a formal supply agreement prior to the project's financing approval in 2021.

Mark Nikolich, Braskem America CEO, states, "Encina's technology and this important project will divert thousands of tons of hard-to-recycle plastic from landfills. As the North American leader in polypropylene, Braskem is actively looking to purchase sustainable propylene feedstock that will allow us to increase both recycled and renewable-sourced products in our portfolio - as stated in our new circular economy commitments. This agreement is an important step in our next phase of growth as a company, aimed at realizing our vision of a carbon neutral circular economy and helping our clients meet their aggressive recycled content goals in the years to come."