Neste signs supply agreement with Korean conglomerate

Neste Oyj, a Finnish petrochemical company that is in the process of converting a refinery to become a large-volume provider of recycled-content products, has reached an agreement to supply its Nest RE product line to Lotte Chemical of South Korea. The Neste RE product line is made using a chemical recycling process with feedstock that includes residues such as used cooking oil and plastic scrap.

Neste and Lotte Chemical have agreed to a “strategic collaboration" to replace fossil resources with renewable raw materials in the manufacturing of chemicals and plastics. The crux of the collaboration involves Neste providing its Neste RE raw material for chemicals and plastics, which the firm says is made from 100 percent renewable raw materials.

Lotte Chemical, part of the Lotte Group, will use Neste RE at the its Korean sites to produce various common types of plastics and chemicals in Lotte Chemical’s product portfolio.

The recycled-content plastics and chemicals could be used in several applications and supply chains, including in products ranging from packaging to construction and from textiles to electronics.

“We are looking forward to increasing the share of renewable solutions in collaboration with Lotte Chemical,” says Jeroen Verhoeven, vice president at Neste. “Together, we can pave the way to more sustainable supply chains and lower emissions for a wide range of sectors and applications.”

Neste says its Neste Re product line can serve to replace chemicals and plastics still largely depending on fossil resources while the “quality and performance of the end products remain unchanged.

Earlier this month, Neste said much of the transformation work at its Porvoo, Finland, refinery will take place during the second quarter of this year.

Referring to the work as a “major turnaround” project, Neste says the project will contribute to its ambition to make the Porvoo refinery the most sustainable refinery in Europe by 2030 and to reach carbon-neutral production by 2035.