BRASKEM
Collaboration with Siluria to produce ethylene from methane
Brazilian resins giant Braskem (São Paulo; www.braskem.com) is collaborating with Siluria Technologies (San Francisco, California / USA; www.siluria.com) to commercialise a technology developed by Siluria for converting methane in natural gas to ethylene. Under the agreement, Braskem and Siluria will jointly explore the commercial deployment of the technology, which involves the oxidative coupling of methane (OCM), for supplying ethylene to Braskem.
The companies will conduct a joint feasibility study to identify commercial opportunities to use Siluria's OCM technology at Braskem's ethylene consuming plants. Braskem has also agreed to host Siluria’s first demonstration plant at its US site in La Porte, Texas. The USD 15m (EUR 11m) facility is expected to be operational by Q4 of 2014.
“This technology is on the leading edge of developments in our industry and is well designed to meet our needs for plentiful, affordable feedstock,” said Fernando Musa, CEO of Braskem’s US unit, Braskem America. "We believe the technology can play an important part in our growth strategy as well as potentially strengthening our current asset base."
Ed Dineen, CEO of Siluria, said: "[Braskem’s] industry expertise, substantial footprint and aspirations for growth make it an ideal first partner in Siluria's multiple-partner strategy to deploy our technology across the chemicals, fuels and natural gas processing industries."
The companies said the collaboration includes some non-exclusive technology licence options for the large-scale deployment of the OCM technology by Braskem and opportunities for the Brazilian to be a purchaser of ethylene produced from future Siluria plants as well as rights for Siluria ownership participation in the South American's commercial projects using OCM technology.
The OCM technology can be used in existing ethylene plants, and can also be added to gas processing plants, which separate methane from natural gas liquids. Siluria says the technology’s compatibility with existing industry operations as well as its relative simplicity and energy efficiency provide attractive economics compared to ethylene production through ethane and naphtha cracking.
The companies will conduct a joint feasibility study to identify commercial opportunities to use Siluria's OCM technology at Braskem's ethylene consuming plants. Braskem has also agreed to host Siluria’s first demonstration plant at its US site in La Porte, Texas. The USD 15m (EUR 11m) facility is expected to be operational by Q4 of 2014.
“This technology is on the leading edge of developments in our industry and is well designed to meet our needs for plentiful, affordable feedstock,” said Fernando Musa, CEO of Braskem’s US unit, Braskem America. "We believe the technology can play an important part in our growth strategy as well as potentially strengthening our current asset base."
Ed Dineen, CEO of Siluria, said: "[Braskem’s] industry expertise, substantial footprint and aspirations for growth make it an ideal first partner in Siluria's multiple-partner strategy to deploy our technology across the chemicals, fuels and natural gas processing industries."
The companies said the collaboration includes some non-exclusive technology licence options for the large-scale deployment of the OCM technology by Braskem and opportunities for the Brazilian to be a purchaser of ethylene produced from future Siluria plants as well as rights for Siluria ownership participation in the South American's commercial projects using OCM technology.
The OCM technology can be used in existing ethylene plants, and can also be added to gas processing plants, which separate methane from natural gas liquids. Siluria says the technology’s compatibility with existing industry operations as well as its relative simplicity and energy efficiency provide attractive economics compared to ethylene production through ethane and naphtha cracking.
22.01.2014 Plasteurope.com [227318-0]
Published on 22.01.2014