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Braskem and Casa dos Ventos announce wind power supply agreement to avert emission

January 26/2021

MOSCOW (MRC) -- Braskem has signed an agreement for the purchase of wind power from Casa dos Ventos, one of the pioneers and largest investors in the development of wind power projects in Brazil, as per Braskem's press release.

The corporate power purchase agreement (PPA) is linked to the construction of a new wind power plant and provides for the supply of renewable energy for 20 years, with emissions avoided in the period estimated at around 700,000 tons of CO2. Casa dos Ventos will be responsible for directing the investment in building the new wind farm.

"This is our fourth long-term agreement for the acquisition of renewable energy and involves the largest volume acquired to date. With it, we will help build another power generation farm and strengthen our strategy of ensuring an energy matrix with a growing share of renewable energy in our operations and in the operations of the petrochemical chain, reaffirming our commitment to sustainable development. We are working hard to become a carbon neutral company by 2050, with the target of reducing by 15% our emissions by 2030, and this is just another step on this journey," said Gustavo Checcucci, Energy Director at Braskem.

In addition to acquiring energy, Braskem will have the option to acquire, subject to approval by government authorities, an ownership interest in the wind farms, creating the possibility for implementing a self-production model. "We created a custom model in which we are responsible for building and operating the wind farms, but we offer the possibility for our partners to become shareholders in these projects in the future. This is a win-win model, especially for the country, since it encourages an energy transition model for large consumers," explained Lucas Araripe, new business director at Casa dos Ventos.

In 2020, Braskem announced two other major agreements for the acquisition of renewable energy. The first agreement, announced in March, with the France-based multinational Voltalia , will enable the expansion of the Serra do Mel Solar Complex located in the state of Rio Grande do Norte, with generation capacity of 270 MW. The second agreement, announced in June, is a partnership with Canadian Solar that enables the construction of a solar plant in northern Minas Gerais state, with installed capacity of 152 MWp, which is sufficient to supply a city of 430,000 people.

In late 2018, the company signed an agreement with EDF Renewable for the purchase of wind power for 20 years. Through these four agreements, with Casa dos Ventos, Voltalia, Canadian and EDF Renewable, Braskem estimates that it will avoid around 1.5 million tons of CO2 emissions.

Braskem announced a public commitment to expand its efforts to become a carbon neutral company by 2050. To achieve this target, the company's strategy includes initiatives for carbon reduction, offsetting and capture, expansion of the I'm greenT portfolio, which comprises products focusing on the circular economy, as well as engagement over the next ten years to reach the proper disposal of 1.5 million tons of plastic waste.

Both Braskem and Casa dos Ventos are formal signatories to the Global Compact and to the 17 Sustainable Development Goals of the United Nations. The partnership, combined with Braskem's initiatives for the following decades, is aligned with the UN 2030 Agenda and the Paris Agreement for controlling the impacts from climate change.

As MRC wrote before, Brazils state-run oil company Petrobras is seeking 800 million reais (USD152 million) in compensation from engineering group Odebrecht in arbitration proceedings over its alleged violation of the shareholders agreement in petrochemical company Braskem. Odebrecht is seeking to sell its 38.3% stake in Braskem SA, while Petrobras aims to offload its 36.1% stake.

We remind that Braskem is no longer pursuing a petrochemical project, which would have included an ethane cracker, in West Virginia. And the company is seeking to sell the land that would have housed the cracker. The project, announced in 2013, had been on Braskem's back burner for several years.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Headquartered in Rio de Janeiro, Petrobras is an integrated energy firm. Petrobras' activities include exploration, exploitation and production of oil from reservoir wells, shale and other rocks as well as refining, processing, trade and transport of oil and oil products, natural gas and other fluid hydrocarbons, in addition to other energy-related activities.
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, homopolymer PP, propylene, HDPE, ethylene, petrochemistry, recikling, Braskem, Petrobras, sustainable development, Brazil, Russia, USA.
Category:General News
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