Neste and Singapore-based essential chemicals company PCS Pte. (PCS) have launched a cooperation for the supply of renewable solutions to Southeast Asia’s chemicals industry. The collaboration aims at introducing renewable raw materials to replace fossil ones in chemicals and plastics value chains in the region.

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, or residues from vegetable oil processing, Neste RE will serve as a replacement for 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.

First deliveries will include butadiene to Mitsubishi Corporation, Toray Plastics (Malaysia) Sdn Berhad and Synthomer Sdn Bhd, through which renewable solutions will make their way to end user applications in the industry.

“With this partnership, we are establishing one of the first ISCC-certified renewable value chains for butadiene in the region,” says Hisashi Shibayama, Managing Director at PCS. “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.”

“This marks another milestone in the use of Neste RE in Singapore,” says Jeroen Verhoeven, Commercial Director, Polymers and Chemicals at Neste. “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.”