A joint venture between material firm Braskem SA of Brazil and Japanese industrial conglomerate Sojitz Corp. plans to build a $400 million plant making bio-based plastic feedstocks in Lafayette, Ind.
The Sustainea JV — formed in 2022 — will co-locate the bio-monoethylene glycol (MEG) plant with food ingredients maker Primient to leverage that firm's local supply of corn dextrose to make a plant-based alternative to petroleum-based MEG.
Bio-MEG made at the plant will be used to make PET resin for bottles, food packaging, apparel, footwear and other products, officials said in a news release. Sustainea will break ground on the project after engineering is completed and a final investment decision has been approved.
Production at the plant would begin in 2028. The project is expected to create almost 200 jobs.
"This partnership marks a significant step forward in building one of the largest sustainability ventures globally," Sustainea CEO Gustavo Sergi said.
"The high energy efficiency and low-carbon dextrose produced at the Lafayette plant will uniquely position Sustainea's products," he added. "This announcement greatly serves our customers who will benefit from decarbonizing an ever-growing PET market."
Chief Business Officer Everton Van-Dal said the decision to locate the plant in Lafayette followed a comprehensive evaluation, considering everything from the carbon footprint to the sustainability of the entire value chain.
"We evaluated sustainable corn production in the region, market access and the availability of local talent for Sustainea's first industrial facility," he added. "The significant support from state and local government incentives was also a key factor in the decision."
The Indiana Economic Development Corp. is giving Sustainea up to $6.9 million in incentive-based tax credits for the new plant, as well as up to $100,000 in training grants. These incentives are performance-based, enabling the company to claim state benefits once the investments are made.
Sustainea's long-term plans call for the construction of three global bio-MEG plants with total annual production capacity of more than 1.5 billion pounds.