Industry Investment Brazil Chemical Investment Polential On Display in Panel
Chemicals derived from renewable biomass, along with cosmetics, agrochemicals and chemicals for leather processing represent leading opportunities for investment by the global chemical industry in Brazil, according to presentations at yesterday’s panel discussion on investment in that country.
Braskem S.A. Innovation Manager Paulo Coutinho explained that Brazil’s large potential in raw materials, including biomass and others, combined with its existing culture and technology for biotechnology, help create good opportunities for strategic investment by the global chemical industry.
Coutinho also noted the potential of second-generation (cellulosic) bioethanol, and spoke about a methodology, developed by Braskem, that can be used to evaluate investment opportunities in chemicals by determining the value of various chemical products given a corresponding desired return on investment.
The 6th Largest Chemical Industry in the World
Session moderator Fernando Figueiredo, from ABIQUIM, the Brazilian chemical industry association in São Paulo, reminded attendees that Brazil’s chemical industry is the 6th largest in the world, and echoed Coutinho in describing the country’s raw material potential in petroleum, natural gas, biomass, quartz, minerals, rare-earth metals and others. Brazil has large markets for cosmetics, agrochemicals and chemicals for leather, Figueiredo pointed out. Figueiredo was joined on the panel by ABIQUIM colleague Mariana Doria.
From Biomass to Raw Materials
Biomass-derived chemicals and cosmetics were also among a large set of subjects for a 2014 study that was discussed at the Achema panel discussion, entitled “Investing in Brazil: Opportunity or Illusion?” The study, commissioned and funded by the Brazilian National Development Bank (BNDES), aimed to identify opportunities for diversifying the chemical industry in Brazil.
Felipe Pereira and Gabriel Gomes, both from BNDES, discussed the study during the panel session, commenting that the potential investments in the Brazilian chemical industry of between US$33-47 billion.