Neste acquires a minority stake in Alterra Energy
Finland-headed Neste Oyj, a world-leading provider of renewable diesel and sustainable aviation fuel (SAF) and an expert in delivering drop-in renewable and circular chemical solutions, has announced that it has acquired a minority stake in Alterra Energy, LLC, an innovative US-based chemical recycling technology company. Neste’s equity investment, the value of which has not been disclosed, supports Alterra Energy’s international expansion.
Furthermore, the collaboration between the companies will include joint technology development and global technology licensing, enabling the partners to collaborate in commercializing Alterra’s proprietary thermochemical liquefaction technology in Europe.
According to Alterra, its patented thermochemical liquefaction technology is based on “thermodynamics, kinetics, and process chemistry to achieve an efficient, continuous process with relatively low upfront investment and operating costs.”
As such it enables a broad range of plastic waste streams from diverse post-consumer sources to be liquefied into a material similar to crude oil. Such material can be flexibly processed and upgraded by companies like Neste into high-quality feedstock for polymers and chemical production.
The first plant in Europe during 2021
Alterra’s existing industrial-scale 60 tonnes-per-day waste plastics liquefaction plant in Akron, Ohio (OH) produces commercial volumes that can already be refined and upgraded into high-quality feedstock for plastics and chemicals.
This, together with Neste’s refining capability, enables sustainability-oriented brands globally to start introducing recycled content into their products and offerings.
Collaboration with Alterra Energy strengthens Neste’s ecosystem of partnerships that are aimed at accelerating the transition to a circular plastics economy. It demonstrates our commitment to continue developing the chemical recycling industry by supporting some of the leading companies in commercializing promising technologies. This partnership also supports Neste’s aim of building new business growth based on chemical recycling, while marking another significant step towards our target of processing more than one million tonnes of plastic waste from 2030 onwards, said Mercedes Alonso, EVP Renewable Polymers and Chemicals at Neste.
The companies are working together towards a global rollout of Alterra’s proprietary liquefaction technology with a strong initial focus on Europe, a leading market in the global transition towards making plastics value chains fully circular.
With this, the companies aim to accelerate the adoption of chemical recycling and develop a capacity to turn hard-to-recycle plastic waste into high-quality, high-performance polymers and chemicals.
The collaboration of the companies supports Alterra Energy’s target of commencing the construction of a state-of-the-art liquefaction site in Europe during 2021.
The Neste-Alterra partnership will unlock the full potential of the circular economy, bringing our technology to more partners around the world, creating a cleaner planet. Neste is a world leader in renewable and circular solutions and its endorsement of Alterra’s proprietary process is both extremely rewarding and validating, remarked Alterra’s CEO Frederic Schmuck.