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Press Releases • February 15, 2022

Braskem and Veolia have come together to implement a biomass energy project in the state of Alagoas

Braskem and Veolia have signed a BRL 400 million investment agreement to produce renewable energy using steam from eucalyptus biomass in Alagoas. The project will generate 900,000 tons of steam/year for 20 years, which will mean emission reductions of approximately 150,000 tons of CO2 per year. Furthermore, it will create more than 400 direct jobs during the construction phase and approximately 100 jobs in the operational phase (post-construction).

Expected to begin operating in 2023, the plant in Marechal Deodoro (AL) will have a positive socio-economic impact on the region and the country, and it is in line with the companies' global sustainable development strategy, as well as its sustainable transformation proposals. Braskem is the largest producer of thermoplastic resins in the Americas and the largest producer of polypropylene in the United States, and Veolia is a reference company worldwide in energy, water, and waste management solutions for cities and industries.

"As it is a worldwide reference in the area of ecological transformation, Veolia is also committed to expanding the implementation of existing sustainable solutions and creating solutions for the future for our clients. The partnership with Braskem is the proof of this: two companies that have come together to lead with transformative initiatives that the country and the world need," says Veolia Brasil CEO, Pedro Prádanos.

The new steam production plant, which constitutes a significant advance in the energy grid to renewable sources in Braskem operations in Alagoas, is a great step towards advancing two of the company's seven macro-objectives of sustainability, in the struggle against climate change: 15% reduction in greenhouse gas emissions by 2030, and achieving carbon neutrality by 2050. "The eucalyptus biomass project introduces a new sustainable method for generating renewable energy within Braskem operations. In partnership with Veolia, we will make an important contribution to our sustainability plan. We will reduce the greenhouse gas emissions generated by our operations in Alagoas by one-third, based on our 2020 emissions," says Gustavo Checcucci, Director of Energy at Braskem.

"The project will make a significant contribution to the social and regional development of the state of Alagoas. It will stimulate business and create job opportunities at our and our partners' facilities, contributing to the economy of the State," says Helcio Colodete, Industrial Director at Braskem in Alagoas.



With a focus on sustainability, but also on eco-efficiency and productivity, the solution is intended to fulfill the necessary demand for steam for the continuous high-performance operation of the petrochemical plant. In order to reach this target, Veolia will be responsible for managing most of the project, including the agricultural and forestry management process involving more than 5,500 hectares of eucalyptus groves, the engineering concept of the project, and the construction of biomass processing and steam production plants, in addition to the operation and maintenance of the entire facility for the 20-year agreement period. Braskem will make internal investments to adapt the Marechal Deodoro complex to the new thermoelectric system.

Furthermore, in order to ensure the highest standards of efficiency and quality within both companies, the initiative also includes processes aligned with digital transformation and industry 4.0. With the implementation of Hubgrade, the Veolia solution that includes digital tools and human expertise to monitor and analyze operations in real-time, the project will ensure performance optimization and continual improvement of our facilities and energy consumption.

"By covering the necessary demand for steam for the uninterrupted operation of its production processes, this project will fulfill Braskem's operational requirements and, at the same time, address its sustainability challenges in energy management," concludes the CEO of Veolia Brasil.



The Veolia Group is a reference company in ecological transformation. Present on all five continents with almost 179,000 employees, the Group conceives and implements useful and concrete solutions for water, waste, and energy management, which will contribute to radically changing the game. With its three supplementary activities, Veolia contributes to developing access to resources, as well as the preservation and renewal of available resources.

In 2020, the Veolia Group provided access to potable water to 95 million residents, and basic sanitation to 62 million; it also produced around 43 million MWh and recycled 47 million tons of waste. In 2020, Veolia Environnement (Paris Euronext: VIE) had consolidated billings of 26.01 billion euros.



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