The research, which will explore ways of manufacturing propylene, is being partly funded by Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP), says Braskem director of innovation and technology Antonio Queiroz.

"Our technology has already been tested in pilot experiments, and we are improving our polymers with more competitive technologies on a commercial scale, based on raw materials from renewable sources," he said.

Queiroz says the new funding will add to Sao Paulo-based Braskem's earlier investment in an 500 million Real (1.9 billion yuan) plant to manufacture high density polyethylene from sugar cane ethanol. That is scheduled to start production in 2011.