Neste will provide its branded Neste RE 100% renewable raw material – made from chemically recycled plastic waste and residue oils and fats – to SK Geo Centric in South Korea for further processing into benzene. The benzene will then be sent to Covestro, which will use it as feedstock for MDI production at its site in Shanghai, China.

"I am much pleased that through this collaboration we continue to ramp up the market for such sustainable alternative materials. This enables us to supply our customers in Asia-Pacific with more sustainable MDI based on mass-balanced raw materials," said Sucheta Govil, Covestro’s chief commercial officer.

"Using such materials, Govil said, is attractive because it will also help them achieve their climate goals. Another core benefit of this line of products is that it is a technical drop-in solution that our customers can use immediately without a major changeover in their plants."

The companies said the cooperation marks the start of possible future collaborations between them, aimed at replacing fossil feedstocks with more sustainable alternatives for producing chemicals and polymers in the Asia-Pacific region and beyond.

Neste launched its Neste RE raw material in November 2020. The Finnish oil and refining group has also been collaborating with LyondellBasell on renewable, bio-based PP, as well as with Borealis on renewable propane/PP. Swiss specialty chemicals producer Clariant has also launched a range of additives using Neste RE.

Author: Elaine Burridge, Freelance Journalist