Sumitomo Chemical has completed construction and commenced operations of a pilot plant at its Chiba Works site in Sodegaura to test a proprietary process that directly converts ethanol into propylene. This innovative technology, backed by the NEDO Green Innovation Fund, marks a major step in the chemical industry’s shift toward alternative, more sustainable feedstocks. The company plans to accelerate demonstration efforts with the goal of commercializing the process and offering it for licensing by the early 2030s.
Propylene, a fundamental building block in the chemical industry, is currently produced in Japan primarily from naphtha, a fossil fuel derivative. Ethanol, however, offers a renewable alternative, as it can be derived from biomass sources such as sugarcane, corn, and even non-edible materials like pulp. Recent advances have also made large-scale ethanol production from combustible waste more feasible, further strengthening its potential as a sustainable feedstock.
Sumitomo Chemical’s new process stands out by enabling the direct, single-step production of propylene from ethanol—eliminating the need for intermediates like ethylene, which are commonly involved in other methods. This streamlined approach not only promises to reduce production costs but also produces hydrogen as a by-product. When bioethanol is used, the hydrogen generated is also bio-based, adding further environmental value.
The company will continue collecting the technical data required to scale up the process and is preparing to promote polypropylene made from propylene produced via this new method. Commercialization and technology licensing are targeted for early next decade.
As part of its broader strategy, Sumitomo Chemical is reorienting its petrochemical operations to emphasize technologies that support environmental sustainability. Structural reforms are underway in both domestic and international markets, alongside increased efforts in technology licensing and catalyst sales, including for the ethanol-to-propylene process.
Looking ahead, Sumitomo Chemical plans to establish a green transformation (GX) solutions business beyond 2030. This new model will focus on building a circular value chain in collaboration with raw material providers and brand owners, while also monetizing carbon reduction efforts achieved through its technologies.
Through the continued development of forward-looking innovations, the Sumitomo Chemical Group remains committed to contributing to a more sustainable future.
