Jakarta – Indonesia-based chemicals supplier PT Chandra Asri Petrochemical Tbk (Chandra Asri) is planning to build a hydrotreated vegetable oil (HVO) unit in collaboration with Korean trading company LX International.
In a 25 Aug statement, the Indonesian group said the output of the facility would be bio-naphtha, a renewable feedstock that can be used to develop chemicals and polymers, including bio-solution styrene butadiene rubber (SSBR) and bio-polypropylene (PP).
The company has now signed a memorandum of understanding with LX International to build an HVO facility with a planned capacity of 300-500 kilotonnes per annum (ktpa).
The unit will be constructed close to Chandra Asri’s petrochemical complex in Cilegon, Banten, to achieve operational synergy.
According to Chandra Asri, the bio-naphtha produced by the plant can be mixed into the olefin cracker plant, to produce sustainable chemical building blocks that can be further processed into vegetable-based polymers.
In addition, this facility will be able to produce alternative energy to replace fossil raw materials, Chandra Asri said.
The two partners have also agreed to carry out a market study on the products and the supply of raw material.
Chandra Asri said the resulting products from the project, including green polymers and SSBR will be used to manufacture environmentally friendly tires.
The result of the study will also be applied to Chandra Asri’s second petrochemical complex CAP2, which is set to become operational in 2024 and to produce 175ktpa of butadiene as well as other polymers.