Nippon Shokubai to Explore Green Chemical Business

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by KnowESG
KnowESG_Green Chemical
Image courtesy of Nippon Shokubai

NIPPON SHOKUBAI CO., PT NIPPON SHOKUBAI INDONESIA, and PT Chandra Asri Petrochemical Tbk signed a Memorandum of Understanding (MOU) to explore green chemical business opportunities.

Through this MOU, Nippon Shokubai, as well as its affiliates, NSI and Chandra Asri, will explore the potential to produce biomaterials such as bio-naphtha, bio-olefins, and various products that use renewable energy to make sustainable derivative products such as acrylic acid, acrylic ester, and superabsorbent polymer (SAP).

A study will be conducted to see the feasibility of producing a ‘bio’ feedstock and creating a new green supply chain in NSI and Chandra Asri’s existing plants in Cilegon, maximising the company’s asset footprint, core competencies and technologies.

This initiative marks another critical programme incorporated within Chandra Asri’s overarching Environmental, Social, and Governance (ESG) Framework launched in 2022 as part of the company’s focus to maintain its position, including the achievement of listing within the top 1 percentile of comparable peers, as rated by Sustainalytics, the global ESG rating agency.

This bio’ project is also planned to be certified by an independent certification body. This initiative is also in line with “Strategic Transformation for Environmental Initiatives” in the Nippon Shokubai Group’s long-term vision, “TechnoAmenity for the future” and “Promoting the use of bio-based materials” in its roadmap for reducing GHG emissions by 2050.

It will also reduce CO2 emissions throughout the product lifecycle, contributing to lower carbon emissions toward the Republic of Indonesia’s long-term plan, “Indonesia’s Long-Term Strategy for Low Carbon and Climate Resilience 2050.”

A green chemical is a general term for all chemical products with a low environmental impact that are obtained from renewable resources such as plants, agricultural products, their by-products, and wastes and that replace conventional chemicals made from fossil fuels.

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Source: Nippon Shokubai

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