Sumitomo Chemical begins operating ethanol-to-propylene pilot plant in Japan, advancing sustainable feedstock technology with commercialization targeted by 2030s.

Japan: Sumitomo Chemical has commenced operations of a new ethanol-to-propylene pilot facility at its Sodegaura site in Chiba Works, marking a major step in advancing alternative feedstock technologies for the petrochemical industry.

The pilot plant is based on the company’s proprietary process, which enables the direct, one-step production of propylene from ethanol, eliminating the need for intermediates such as ethylene. This innovation is expected to significantly reduce production costs while also generating hydrogen as a valuable by-product. When bioethanol is used, the process allows for co-production of bio-derived hydrogen, further strengthening its sustainability credentials.

Supported by the NEDO Green Innovation Fund, the project is part of Sumitomo Chemical’s broader effort to accelerate the transition from fossil fuel–based feedstocks to renewable alternatives. Propylene, a key building block in the petrochemical sector, is currently derived mainly from naphtha in Japan. By utilizing ethanol, which can be sourced from biomass and even combustible waste, the company aims to reduce dependency on fossil resources.

Sumitomo Chemical will continue demonstration activities to acquire the data required for industrial application and plans to commercialize and license the technology by the early 2030s. Additionally, the company will promote polypropylene made from propylene produced via this process, targeting both domestic and global markets.

According to TechSci Research, Sumitomo Chemical’s launch of its ethanol-to-propylene pilot plant marks a significant advancement for the chemical industry’s transition toward sustainable feedstocks. Propylene, an essential building block for a wide range of petrochemical products, is currently produced predominantly from fossil-based naphtha. By enabling direct, one-step production of propylene from ethanol, the new technology offers a cost-efficient alternative that reduces reliance on fossil resources while enhancing process efficiency. Moreover, the co-production of hydrogen as a by-product, particularly when bioethanol is used, introduces an additional renewable energy source that can further support decarbonization initiatives within the industry. With growing technological progress in producing ethanol from biomass and even combustible waste, this approach strengthens the industry’s ability to adopt circular and low-carbon feedstock solutions. Supported by the NEDO Green Innovation Fund, the pilot project also aligns with global regulatory and market trends pushing for greener, more resilient supply chains. Once commercialized, the technology could be widely licensed, broadening access to sustainable propylene production methods and contributing to the long-term competitiveness and environmental responsibility of the chemical industry.