Chandra Asri Petrochemical, Indonesia’s largest integrated petrochemical company, is collaborating with LX International, a trading and investment company based in South Korea, for a potential investment in developing a Hydrotreated Vegetable Oil (HVO) facility that can produce renewable feedstock in the form of Bio-Naptha. This raw material will be used to develop chemical and plastic products such as Bio-Polyethylene (PE), Bio-Polypropylene (PP), Bio-Polyvinyl Chloride (PVC), and Bio-Solution Styrene Butadiene Rubber (SSBR) as an effort to support Chandra Asri towards sustainable production of polymer raw materials.
The HVO project is one of Chandra Asri’s efforts to implement its commitment to sustainable business and operations in accordance with the principles of Environmental, Social, and Governance (ESG) as the company’s contribution to climate change mitigation and resource scarcity.
As a growth partner, Chandra Asri wants to contribute in maintaining ecosystem balance, reducing carbon emissions, and supporting the acceleration of achieving the Sustainable Development Goals (SDGs) target. This collaboration is expected to produce a source of Bio-Naphtha raw material that can be mixed into monomers in the Olefin Cracker Plant and further processed into vegetable-based plastic raw materials. In addition, this facility will be able to produce alternative energy to replace fossil raw materials, which is in line with the company’s developed Greenhouse Gas Roadmap.
In this collaboration, Chandra Asri plays a role in developing investment, providing information regarding land, and supplying hydrogen. Meanwhile, aside from the investment, LX International will participate in market investigation studies related to products and raw material supply.
The HVO project will have a capacity of 300 thousand-500 thousand tons per year and is close to Chandra Asri petrochemical complex in Cilegon, Banten, so operational synergy plans can be easily realized. The resulting products from this project, including green polymers, PVC, and SSBR used to manufacture environmentally friendly tires, will add to Chandra Asri’s sustainability-linked products portfolio. In addition, the result of the study will be applied to plans and configurations for the development of CAP2, Chandra Asri’s second world-scale petrochemical complex, to meet domestic petrochemical needs.
(Source: Chandra Asri)
