Neste and Lotte Chemical partner to produce sustainable chemicals
Photo courtesy of Neste

Neste and Lotte Chemical partner to produce sustainable chemicals

Finnish biofuel producer Neste and South Korea’s Lotte Chemical have announced a strategic partnership aimed at transforming the chemicals and plastics industry. The collaboration is set to replace traditional fossil-based resources with renewable raw materials, marking a significant step forward in the production of environmentally friendly chemicals and plastics.

Under this partnership, Neste will supply its innovative renewable product, Neste RE™, made entirely from renewable resources, to Lotte Chemical’s manufacturing sites in South Korea. This collaboration will enable the production of various types of plastics and chemicals, integral to a wide array of applications spanning from packaging and construction to textiles and electronics, without compromising on quality or performance.

This initiative is in response to the urgent need for the chemicals and plastics sectors to transition towards more sustainable production methods, given their current heavy reliance on fossil fuels. The collaboration between Neste and Lotte Chemical promises to pave the way for more sustainable supply chains, significantly reducing the carbon footprint of products traditionally made from fossil resources.

Jeroen Verhoeven, vice president of Value Chain Development for renewable polymers and chemicals at Neste, expressed enthusiasm about the partnership, emphasising its potential to foster more sustainable practices across various industries. “Together, we can pave the way to more sustainable supply chains and lower emissions for a wide range of sectors and applications,” Verhoeven stated.

Neste is the world’s leading producer of sustainable aviation fuel and renewable diesel. The company’s efforts have significantly helped its customers reduce greenhouse gas emissions, with ambitions to further decrease the carbon intensity of its sold products by 50% by 2040. Neste’s Porvoo refinery in Finland is also on track to become Europe’s most sustainable refinery by 2030.

Lotte Chemical, on the other hand, has laid out its “Green Promise 2030,” an ESG strategy that echoes its vision of leading sustainable future industries. With plans to supply a substantial volume of hydrogen by 2035 and expand its battery material business globally, Lotte Chemical is poised to make significant strides in eco-friendly production.

The collaboration between Neste and Lotte Chemical not only signifies a leap towards reducing the environmental impact of chemical and plastic production but also highlights the potential for global industry leaders to drive change towards a more sustainable and greener future.