Braskem (BAK) and Norsk e-Fuel said Thursday they are collaborating to explore the possible integration of e-Naphtha, derived from captured carbon, into the plastics production value chain.

e-Naphtha is a "valuable feedstock for creating long-lasting, circular products," Norsk e-Fuel Chief Commercial Officer Lars Bjorn Larsen said. "By capturing carbon and embedding it into durable, recyclable materials, we keep carbon in use and out of the atmosphere."

The company plans to build at least three large-scale facilities that convert fossil-free electricity, water, and captured carbon dioxide into synthetic fuels and feedstocks by 2032. The combined annual production capacity is expected to exceed 200,000 tons of e-Fuels.

Braskem said it aims to expand its portfolio with "innovative plastics" by potentially processing e-Naphtha into polypropylene and other essential materials.

The company's shares were up 4% in recent premarket activity.