
Braskem and Neste announce agreement on supply of circular and bio-circular feedstocks for polymers and chemicals production
Braskem, the largest producer of thermoplastic resins in the Americas as well as a global market leader and pioneer in the production of biopolymers on an industrial scale, and Neste, a Finnish refining company, have reached an agreement for the supply of circular and bio-circular feedstocks for polymers and chemicals production. Braskem products based on these feedstocks are expected to be available on the market starting from the fourth quarter of 2024. These products will be sold mainly in South America and included in Braskem's Wenew product portfolio.
"This is a very important moment for the industry. We're introducing a new solution that will adhere to the industry's high-quality standards while ensuring sustainability right from the start of the value chain. This partnership with Neste is a significant milestone in our journey towards a circular economy," stated Fabiana Quiroga, Director of Circular Economy at Braskem in South America.
Braskem will sell polymer resins and chemicals made from Neste's more sustainable feedstock Neste RET : the circular feedstock, produced leveraging plastic waste via chemical recycling, and the bio-circular feedstock produced by processing renewable raw materials such as used cooking oil (UCO).
"We are excited to welcome Braskem as our partner in advancing the transformation of the plastics and chemicals industry towards more sustainable solutions," emphasizes Jeroen Verhoeven, Commercial Director for Polymers and Chemicals at Neste. "We are looking forward to seeing our Neste RE solution in action in South America, reducing the dependence of virgin fossil feedstock in the production of polymers and chemicals."
An ISCC PLUS (International Sustainability and Carbon Certification) certified mass balance approach will be applied to integrate the new feedstocks into Braskem's existing processes. This will give customers further reassurance regarding the uninterrupted chain of custody and the sustainable sourcing of the materials.
An innovative solution with clear contributions for a circular economy
By combining circular and bio-circular solutions, Braskem builds upon two of the most promising solutions to reduce the use of virgin feedstock and to promote sustainability in chemicals and plastics value chains.Chemical recycling enables the recycling of those types of plastic waste that are otherwise difficult to recycle, for example multi-material or flexible plastics. In this sense, Neste's circular feedstock can contribute to increasing recycling and therefore help reduce the amount of plastic waste entering the environment.
Neste's bio-circular feedstock, on the other hand, can help reduce greenhouse gas (GHG) emissions when replacing fossil feedstock in the manufacturing of plastics and chemicals. It is produced using renewable raw materials such as waste and residue oils and fats like used cooking oil or residues from vegetable oil processing.
Both feedstocks enable manufacturing of products that are safe and suitable also for sensitive applications, for example food-contact packaging, representing a huge step forward for the market. Particularly for chemical recycling, the Brazilian Health Regulatory Agency (ANVISA) acknowledged that chemical recycling processes, which produce high purity monomers indistinguishable from the original fossil-based monomers and that complies with applicable regulation for food-contact packaging, can be used without requiring any specific authorization.
Neste in brief
Neste (NESTE, Nasdaq Helsinki) uses science and innovative technology to transform waste and other resources into renewable fuels and circular raw materials. The company creates solutions for combating climate change and accelerating a shift to a circular economy. Being the world's leading producer of sustainable aviation fuel (SAF) and renewable diesel and a forerunner in developing renewable and circular feedstock solutions for polymers and chemicals, the company aims to help its customers to reduce their greenhouse gas emissions by at least 20 million tons annually by 2030.
The company's ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe. Neste is committed to reaching carbon-neutral production by 2035, and will reduce the carbon emission intensity of sold products by 50% by 2040. Neste has also set high standards for biodiversity, human rights and the supply chain. The company has consistently been included in the CDP and the DJSI lists of the world's most sustainable companies. In 2023, Neste's revenue stood at EUR 22.9 billion. Read more: neste.com