Siluria Technologies and Braskem America to Collaborate on Siluria's Breakthrough Technology to Convert Natural Gas Directly to
Siluria Technologies and Braskem America to Collaborate on Siluria's Breakthrough Technology to Convert Natural Gas Directly to Ethylene
SAN FRANCISCO, CA and PHILADELPHIA, PA -- (Marketwired) -- 01/15/14 -- Siluria Technologies, a pioneer in the commercial production of fuels and chemicals made from clean, abundant natural gas, and Braskem, a leading producer of thermoplastic resins in the Americas, have formed a broad-ranging collaboration around the deployment of Siluria's proprietary oxidative coupling of methane (OCM) technology for the direct conversion of methane in natural gas to ethylene.
Under the collaboration, Siluria and Braskem will jointly explore commercial deployment of Siluria's technology for supplying ethylene to Braskem. In particular, the two companies will conduct a joint feasibility study to identify commercial deployment opportunities of Siluria's technology at Braskem's ethylene consuming plants. The collaboration also provides for certain non-exclusive technology license options for the world-scale deployment of Siluria's technology by Braskem, as well as opportunities for Braskem to be a purchaser of ethylene produced from future Siluria plants, and rights for Siluria ownership participation in Braskem commercial projects using OCM technology. The collaboration is in conjunction with the previously announced hosting of Siluria's OCM demonstration plant by Braskem.
"We are very pleased to be working with a world leader in olefins and derivatives manufacturing in Braskem," said Siluria CEO Ed Dineen. "Their industry expertise, substantial footprint and aspirations for growth make them an ideal first partner in Siluria's multiple-partner strategy to deploy our technology across the chemicals, fuels and natural gas processing industries."
"Braskem is pursuing the growth of our business in the Americas and globally," said Braskem America CEO Fernando Musa. "We believe the Siluria technology can play an important part in our growth strategy as well as potentially strengthening our current asset base."
Siluria's OCM technology provides a novel process for the conversion of methane from natural gas to ethylene and liquid fuels. The flexibility of the technology provides multiple high-value opportunities for the deployment across multiple industry segments. Siluria plans to deploy its OCM technology in a range of commercial settings, including existing ethylene producing plants, at ethylene consuming sites, upstream gas monetization, natural gas midstream plants, as well as world-scale grass roots deployments. The technology's use of commonly available natural gas as feedstock, compatibility with existing industry operations, as well as its relative simplicity and energy efficiency provide very attractive economics compared to existing ethylene production processes, like ethane and naphtha cracking. Additionally, the company's ethylene-to-liquids (ETL) technology packages are designed to provide substantial capital, operating cost and product slate advantages over alternative gas-to-liquids technologies. Siluria's demonstration plant is expected to be operational by the fourth quarter of 2014.
About Siluria: Siluria Technologies is pioneering the commercial production of fuels and chemicals made from clean, abundant natural gas. Siluria's break-through process technology is believed to be the first commercially viable process to directly convert methane to ethylene, potentially enabling natural gas to replace petroleum as the world-wide basis for drop-in fuels, chemicals and plastics. Siluria's revolutionary catalyst technologies uniquely combine nanomaterials, biotechnology and chemical engineering, to convert an abundant, ubiquitous, and inexpensive feedstock into high value, drop-in fuels and chemicals using processes that can be seamlessly integrated into existing industry infrastructure. For more information, visit www.siluria.com
About Braskem: Braskem is the largest producer of thermoplastic resins in the Americas and the world's leading biopolymers producer, manufacturing green polyethylene from sugarcane-based ethanol. With 36 industrial plants in Brazil, the United States and Germany, the company produces over 35 billion pounds of thermoplastic resins and other petrochemicals per year, creating more environmental-friendly, intelligent and sustainable solutions through chemicals and plastics that improve people's lives.
Braskem is a component of the Dow Jones Sustainability Index Emerging Markets, the Carbon Efficient Index (ICo2) and the Corporate Sustainability Index of the BM&FBovespa - Securities, Commodities and Futures Exchange. Braskem is a member of the United Nations' platform for more sustainable industries and its sustainability annual report is rated level A+. Braskem America is the leading producer of polypropylene in the United States, with five production plants located in Texas, Pennsylvania and West Virginia, and a Technology and Innovation Center in Pittsburgh. Headquartered in Philadelphia, Braskem America is a wholly owned subsidiary of Braskem S.A. For more information, visit www.braskem.com
Michael Kanellos Kanellos@eastwick.com 415-820-4176