Neste-PCS in link-up to establish renewable BD value chain in Southeast Asia

Jurong Island, Singapore – Finnish refiner Neste Corp. has singed an agreement to supply renewable feedstock to Singapore-based PCS for the production of sustainable essential chemicals.

As part of the deal, announced 18 Nov, Neste will supply Nest RE, a renewable feedstock derived from waste materials such as used cooking oil and residues from vegetable oil processing, to PCS facilities on Jurong Island.

Neste RE will partially replace fossil-based raw materials in the production of butadiene, ethylene, and propylene across PCS facilities.

The essential chemicals will then be supplied to customers in various sectors across the region, said Neste in a statement.

The first deliveries, as part of the agreement, will include butadiene for Mitsubishi Corp., Toray Plastics (Malaysia), and Synthomer Sdn Bhd.

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

Furthermore, the move will improve PCS’s ability to meet growing demand for more sustainable solutions.

PCS is the core company of the Singapore Essential Chemicals Complex and mainly manufactures ethylene, propylene, acetylene, butadiene, 1-butene, MTBE and benzene.

The company currently has the capacity to produce 160 kilotonnes per annum of butadiene at its facilities in Jurong Island.