Neste has partnered with
PCS to supply renewable raw materials for the chemicals industry in Southeast
Asia, replacing fossil-based inputs with sustainable alternatives in the
production of key chemicals like ethylene, propylene, and butadiene.
Singapore: Neste, a global leader in renewable
solutions, has entered into a strategic partnership with Singapore-based
essential chemicals provider PCS Pte. Ltd. (PCS) to introduce renewable
materials into Southeast Asia's chemicals and plastics industries. This collaboration
is aimed at replacing fossil-based raw materials with sustainable alternatives
in the region's chemical production processes.
Under
the agreement, Neste will supply PCS with Neste RE, a renewable feedstock
derived from waste materials, such as used cooking oil and residues from
vegetable oil processing. Neste RE will replace conventional fossil raw
materials used in PCS's manufacturing facilities on Jurong Island, Singapore.
With
Neste RE, PCS will produce key chemicals, including ethylene, propylene, and
butadiene, which are vital to a range of industries. These products will then
be distributed to various customers across Southeast Asia, contributing to the
region's growing demand for sustainable chemical solutions.
The
initial deliveries will include butadiene to major customers, including
Mitsubishi Corporation, Toray Plastics (Malaysia) Sdn. Berhad, and Synthomer
Sdn. Bhd., enabling the integration of renewable solutions into end-user
applications.
Hisashi Shibayama, Managing Director at PCS, commented,
"With this partnership, we are establishing one of the first
ISCC-certified renewable value chains for butadiene in the region. This
partnership not only emphasizes our dedication to reducing reliance on virgin
raw materials but also enhances our ability to meet the increasing demand from
our customers for more sustainable solutions. This serves as the initial
foundation in our vision to establish a sustainable essential chemicals'
ecosystem."
Jeroen Verhoeven, Commercial Director for Polymers and
Chemicals at Neste, added, "This marks another milestone in the use of
Neste RE in Singapore. We are glad to welcome PCS on board when it comes to
driving fossil raw materials out of chemicals and plastics. Together, we can
help companies bring down their Scope 3 emissions in an efficient and impactful
manner."
According to TechSci
Research, the
partnership between Neste and PCS marks a significant development for the
Southeast Asian chemicals industry, offering a clear path toward
sustainability. By replacing fossil-based raw materials with Neste RE, derived
from renewable waste sources, the collaboration helps reduce the chemical
sector's dependency on non-renewable resources. This shift aligns with the
global movement toward more sustainable production practices, particularly as
companies face increasing pressure to lower their carbon footprints. The use of
Neste RE for essential products like ethylene, propylene, and butadiene not
only helps decrease Scope 3 emissions but also supports the growing demand for
sustainable chemicals across industries. As the first ISCC-certified renewable
value chain for butadiene in the region, this partnership sets a benchmark for
others to follow, showcasing how large-scale chemical producers can integrate
renewable solutions. Ultimately, it represents a critical step in driving the
Southeast Asian chemicals industry toward a more circular and sustainable
future.