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Aiming to Provide a Stable Supply of Bio-PET to Prevent Global Warming through Reduced Consumption of Oil Resources

Bioethanol is an attractive alternative to fossil fuels, as its combustion does not increase atmospheric CO₂. Contributing to this development, Toyota Tsusho Corporation is producing Bio-Polyethylene Terephthalate (Bio-PET) from sugarcane-based bioethanol and providing a stable supply to manufacturers of automotive interiors, apparel and PET bottles.

Overcoming the disadvantages of conventional bio-plastics

Although a variety of plant-derived plastics have been developed with a view to reducing our consumption of fossil-based resources, applications for many have been limited, since they contain polylactate, which has lower strength, heat resistance, durability and formability than their petro-based counterparts.

We have begun work on the production of Bio-PET, a resin that is stronger than polylactate. Made from sugarcane-derived bioethanol, this Bio-PET has the same characteristics as oil-derived PET. In other words, Bio-PET can be used as an alternative to conventional PET without adjustment, which allows end users easy access to Bio-PET.

Establishing an integrated structure spanning raw material procurement, production and sales

Bio-PET is made from pure terephthalic acid (PTA) and mono-ethylene glycol derived from sugarcane-based bioethanol (bio-MEG). Bio-MEG accounts for approximately 30% of Bio-PET's weight. As the raw material for the bio-MEG is the molasses that remains after sugarcane is refined, bio-MEG competes little with food products and does not cause deforestation.

We will procure bioethanol from Petrobras, Brazil's nationally operated oil producer, under a 10-year-contract commencing in 2012. Under this large-scale contract valued at approximately ¥70 billion, Petrobras will provide us with 140,000 kiloliters per year on an ongoing basis.

Bio-MEG, a processing intermediate, will be produced by Greencol Taiwan Corp., a joint venture we established with Taiwanese chemical manufacturer China Man-made Fiber Corp. in October 2010. The bio-MEG produced by this joint venture is to be supplied to Asian PET manufacturers, who will produce Bio-PET under consignment agreements. This set of arrangements amounts to an integrated Bio-PET supply chain ranging from raw material procurement to manufacturing and sales—the world's first supply chain of its kind.

Further expansion of our production and sales structures to meet growing demand in a wide spectrum of fields

Toyota Motor Corporation began using the newly developed Bio-PET in some of its new models in early 2011. Eventually, the company plans to employ Bio-PET in as much as 80% of interior surfaces, including seats, carpets and areas where the application of conventional bio-plastics is technically difficult. We expect Bio-PET to find applications in a number of other fields, such as beverage bottles, apparel and electronic films.

Global PET production currently amounts to 45 million tons per year. We expect this figure to increase to 60 million tons by 2015. Of this figure, we believe that around 5%, or 2.25–3 million tons, will be replaced with Bio-PET. Initially, we plan to maintain production at 200,000 tons per year, raising production and sales to 1 million tons by 2015.

Bio-PET Supply Chain

The conclusion of a long-term agreement with bioethanol supplier Petrobras will enable us to supply Bio-PET. A new company in Taiwan, of which Toyota Tsusho is a 50% owner, will produce bio monoethylene glycol, which will be transformed into Bio-PET products for Asian producers in cooperation with final product manufacturers.

Bio-PET vs. Conventional Bio-Plastics

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