14 April 2011 12:14 [Source: ICIS news]
Correction: In the ICIS news story headlined “Braskem ETBE to be certified as sustainable by June/July - source” dated 14 April 2011, please read in the second paragraph …Better Sugarcane Initiative (BSI)… instead of … British Standards Institute (BSI)…. A corrected story follows.
LONDON (ICIS)--Brazilian producer Braskem will likely obtain certification of sustainability for its ethyl tertiary butyl ether (ETBE) by June or July of this year, a source close to the company said on Thursday.
The company expects to have its material certified according to criteria set by the Better Sugarcane Initiative (BSI), one of several standard schemes that is expected to be approved within the next two to three months by EU member states as part of the European Commission's renewable energy directive (RED), the source said.
Thus far, only Germany and Austria have adopted the RED's stringent guidelines with respect to renewable-fuel sustainability.
ETBE that is certified as sustainable commands significantly higher prices than non-certified product.
During the week ending 8 April, ETBE offers for non-certified material fell to as low as $5/tonne (€3/tonne) FOB (free on board) ARA (Amsterdam, Rotterdam, Antwerp) as a premium over methyl tertiary butyl ether (MTBE), compared with premiums as high as $300/tonne for certified material in the German market.
Once certification has been obtained, the source said it expects ETBE from Brazil to fetch prices similar to those of sustainably produced material of European origin.
Braskem is the only ETBE producer in South America and one of a small number of producers outside Europe. The Brazilian petrochemical major is the only source of Europe's ETBE imports, according to the source.
($1 = €0.69)
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