Neste & PCS: Delivering South East Asia Renewable Materials

Neste Corporation and PCS have joined forces in a groundbreaking initiative aimed at transforming the chemicals and plastics industry in Southeast Asia.

The collaboration will replace fossil-based raw materials with renewable alternatives, ensuring products remain high-quality, safe and efficient while addressing sustainability challenges.

Advancing renewable materials

Central to this partnership is Neste RE, a renewable feedstock derived from waste materials like used cooking oil and residues from vegetable oil processing. Neste supplies PCS with this innovative material to replace traditional fossil-based feedstocks at PCS’s facility on Jurong Island, Singapore.

Neste RE enables the production of crucial chemical components such as ethylene, propylene and butadiene, widely used in industries across the region. These products will be integrated into supply chains certified by the International Sustainability and Carbon Certification (ISCC) programme, ensuring sustainability and traceability throughout the manufacturing process.

PCS’s first renewable products include butadiene, a vital component in synthetic rubber production.

Key customers like Mitsubishi Corporation, Toray Plastics (Malaysia) Sdn Bhd and Synthomer Sdn Bhd will use this renewable material to enhance their own sustainability goals. By switching to renewable alternatives, these companies aim to significantly reduce their carbon footprints, contributing to the global effort to mitigate greenhouse gas emissions.

Establishing a sustainability benchmark

“This partnership establishes one of the first ISCC-certified renewable value chains for butadiene in the region,” says Hisashi Shibayama, Managing Director at PCS. Hisashi views the collaboration as an essential step toward building a sustainable ecosystem for essential chemicals.

He continues: “We’re committed to reducing our dependence on virgin raw materials and meeting the growing demand for sustainable solutions. This initiative is a foundational step in creating a sustainable essential chemicals ecosystem.”

The shift aligns with an industry-wide push to address Scope 3 emissions, which include all indirect emissions in a company’s value chain. Renewable feedstocks like Neste RE provide a practical solution for companies aiming to reduce their environmental impact while maintaining product performance.

Jeroen Verhoeven, Commercial Director for Polymers and Chemicals at Neste, underscores the transformative potential of the partnership: “We’re thrilled to have PCS join us in driving fossil raw materials out of the chemicals and plastics industry. Together, we can help businesses achieve impactful reductions in Scope 3 emissions.”

Leading the circular economy transition

Neste’s approach centres on converting waste into resources, establishing itself as a global leader in circular economy solutions. With a portfolio that includes renewable fuels and sustainable feedstocks for chemicals and polymers, Neste aims to reduce greenhouse gas emissions by at least 20 million tonnes annually by 2030.

The company has set ambitious goals, including achieving carbon-neutral production by 2035 and halving the carbon intensity of its sold products by 2040. Neste’s sustainability agenda also includes rigorous standards for biodiversity, human rights and supply chain transparency.

PCS plays a critical role in the Singapore Essential Chemicals Complex, producing materials like ethylene, propylene and butadiene—key components in numerous everyday products. PCS also provides utilities and supports the efficient operation of its facilities to meet customer demands.

Together, Neste and PCS are reshaping the industrial landscape in Southeast Asia, demonstrating that innovation and sustainability can go hand in hand. Their collaboration signals a commitment to environmental responsibility and paves the way for a more sustainable future.

As Hisashi Shibayama concludes: “This partnership is a milestone for us and our partners in the region, marking the beginning of a more sustainable chemicals value chain.”

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