Finland-headed oil refiner and renewable products major Neste Oyj and Singapore-based essential chemicals company PCS Pte Ltd (PCS) have launched a cooperation to supply renewable solutions to Southeast Asia’s chemicals industry. The collaboration aims to introduce renewable raw materials to replace fossil ones in the region's chemicals and plastics value chains.
Neste will supply PCS with “Neste RE”, a renewable material for the production of chemicals and plastics.
Based on renewable wastes, such as used cooking oil (UCO), or residues from vegetable oil processing, Neste RE will replace fossil raw materials used at PCS facilities on Jurong Island in Singapore.
Using Neste RE, PCS will produce essential products, such as ethylene, propylene, or butadiene, across its portfolio. These essential products will then be supplied to customers in various sectors across the region.
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, said Jeroen Verhoeven, Commercial Director, Polymers and Chemicals at Neste.
First deliveries from Jurong Island
First deliveries will include butadiene to Mitsubishi Corporation, Toray Plastics (Malaysia) Sdn Berhad, and Synthomer Sdn Bhd, through which renewable solutions will reach end-user applications in the industry.
While the products from these International Sustainability and Carbon Certification (ISCC) certified supply chains will be equal to their fossil counterparts in terms of quality, safety, and performance, using renewable instead of fossil raw materials will reduce their carbon footprint.
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, said Hisashi Shibayama, Managing Director at PCS.
