ChemOne Group to Integrate Bionaphtha in Malaysia's Pengerang Energy Complex for Sustainable Petrochemical Chain
Key Ideas
  • ChemOne Group plans to incorporate bionaphtha in the Pengerang Energy Complex in Malaysia, producing 26,000 tonnes/year of hydrogen to support hydrogenated vegetable oil production and create a sustainable petrochemical chain.
  • Bionaphtha, derived from HVO and SAF production, offers a renewable alternative to fossil-based naphtha, contributing to the demand for bioplastics and partially renewable chemicals in Asia's petrochemical industry.
  • Countries like Singapore with fuel blending mandates are driving the rise in SAF production and the use of bionaphtha, aiming to achieve emissions reductions and support the aviation industry's net zero emissions goal by 2050.
  • While bionaphtha faces challenges due to higher costs and difficulties in converting to paraxylene, its increasing incorporation in steam crackers indicates its growing potential in the petrochemical industry as a sustainable feedstock.
ChemOne Group is planning to incorporate bionaphtha as a feedstock for the upcoming $5.3 billion Pengerang Energy Complex (PEC) in Johor, Malaysia. The complex is expected to process condensate and naphtha to produce aromatics, energy products, and 26,000 tonnes/year of hydrogen. This hydrogen will support the production of hydrogenated vegetable oil, leading to the creation of a sustainable, circular petrochemical chain. Bionaphtha, a byproduct of HVO and SAF production, is increasingly used in Asia's petrochemical industry for sustainable plastics, packaging, and fuel blending. Despite its higher cost compared to fossil-based naphtha, bionaphtha offers a renewable alternative and is being incorporated by major petrochemical companies in Asia. Countries like Singapore with fuel blending mandates are driving the demand for bionaphtha to achieve emissions reductions and support the aviation industry's net zero emissions goal by 2050. While bionaphtha faces challenges in conversion to paraxylene, its growing integration in steam crackers indicates its potential as a sustainable feedstock in the petrochemical industry.
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