Neste & PCS: Delivering South East Asia Renewable Materials

Neste Corporation and PCS, a leading Singapore-based essential chemicals provider, have announced a partnership to revolutionise the region’s chemicals and plastics value chain.

This collaboration will introduce renewable raw materials, reducing reliance on fossil fuels while maintaining product quality, safety and performance.

At the heart of the partnership is Neste RE, a renewable feedstock created from waste and residues such as used cooking oil and vegetable oil processing by-products. Neste will supply PCS with Neste RE, which will serve as a substitute for fossil-based raw materials at PCS’s Jurong Island facility in Singapore.

Using Neste RE, PCS will produce key chemical components like ethylene, propylene and butadiene, essential for various industries across Southeast Asia. These products will be integrated into supply chains certified by the International Sustainability and Carbon Certification (ISCC) programme, ensuring sustainability throughout the production process.

Initial shipments include butadiene, a component used in synthetic rubber and other materials, destined for customers like Mitsubishi Corporation, Toray Plastics (Malaysia) Sdn Bhd and Synthomer Sdn Bhd.

By adopting renewable alternatives, PCS will help these companies reduce their carbon footprints, contributing to global efforts to lower greenhouse gas emissions.

A new standard in sustainability

“This partnership establishes one of the first ISCC-certified renewable value chains for butadiene in the region,” says Hisashi Shibayama, Managing Director at PCS.

“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 move also aligns with broader industry trends where businesses seek to address Scope 3 emissions. By switching to renewable feedstocks like Neste RE, companies can significantly reduce their environmental impact while maintaining product quality.

Jeroen Verhoeven, Commercial Director for Polymers and Chemicals at Neste, highlights the collaboration’s significance: “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.”

Driving a circular economy

Neste’s expertise lies in turning waste into resources, with the company leading global efforts to advance circular economy solutions.

Known for producing renewable fuels and developing sustainable feedstock for chemicals and polymers, Neste aims to help customers reduce greenhouse gas emissions by at least 20 million tonnes annually by 2030.

Neste is also on track to achieve carbon-neutral production by 2035 and reduce the carbon intensity of its sold products by 50% by 2040. As part of its sustainability agenda, the company sets rigorous standards for biodiversity, human rights and supply chain operations.

PCS, meanwhile, is pivotal in the Singapore Essential Chemicals Complex, producing and supplying high-quality materials like ethylene, propylene and butadiene. These components are vital for manufacturing a range of everyday products.

The company also supports customers by providing utilities and ensuring the efficient operation of its facilities.

Together, Neste and PCS are taking a bold step toward sustainable industrial practices in Southeast Asia. The collaboration highlights their shared commitment to innovation and environmental responsibility, paving the way for a greener future.

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