DSM Engineering Materials and Neste parter over replacing thousand of tons of fossil feedstock used in the production of polymers with sustainable feedstock

DSM Engineering Materials and Neste parter over replacing thousand of tons of fossil feedstock used in the production of polymers with sustainable feedstock

(PRESS RELEASE) ESPOO, 27-Nov-2020 — /EuropaWire/ — Royal DSM (AMS: DSM), a global science-based company active in nutrition, health and sustainable living, has announced that it will form a strategic partnership with Neste (HEL: NESTE), the world’s leading producer of renewable diesel and sustainable aviation fuel and a forerunner as provider of renewable and circular solutions for the chemical industry, to enable the production of high performance polymers. The partnership will enable DSM and its customers to reduce the carbon footprint of their own products whilst supporting the industry to transition to a circular economy.

In the new strategic collaboration, DSM Engineering Materials will start replacing a significant portion of the fossil feedstock used to date in the manufacture of its high performance polymers portfolio with feedstock produced from recycled waste plastics and/or 100% bio-based hydrocarbons. These polymers are used, for example, in the automotive, electronics and packaging industries.

Over the short term, the collaboration aims to replace several thousand tons of fossil feedstock in the production of polymers with alternative, sustainable feedstock: bio-based and waste plastic based hydrocarbons.

Neste produces its bio-based hydrocarbons entirely from renewable raw materials, such as waste and residue oils and fats. For the production of waste plastic derived feedstock, Neste focuses on plastics that cannot be mechanically recycled and have previously been directed to incineration and landfilling.

Thanks to being a drop-in replacement to commonly-used fossil feedstock in the polymers production, Neste’s products are suitable for existing production infrastructures and enables DSM to produce more sustainable products with consistently high quality using its existing processes.

All of the chemically recycled and bio-based materials within the value chain will have the globally recognized ISCC Plus certification and will not require re-qualification.

The new strategic cooperation underlines a strong commitment from both partners to contribute to a circular economy by collaborating throughout the value chain, and addressing the increasing consumer, societal and regulatory demand for more sustainable circular solutions.

Shruti Singhal, President DSM Engineering Materials said: “We have a long history of delivering tangible proof points of our commitment to sustainability. As a next step we are going to even further reduce our footprint and will offer a full alternative range of our existing portfolio based on bio- and/or recycled-based materials by 2030. Together with our upstream partner Neste and other value chain partners we’re ready to drive our industry forward, seize the sustainable opportunities ahead, and deliver on our purpose of creating brighter lives for all.”

Mercedes Alonso, Executive Vice President, Renewable Polymers and Chemicals from Neste said: “Neste and DSM are frontrunners in providing sustainable solutions to the market. Both companies have a similar sense of urgency towards creating a healthier future for our children. Neste is very pleased to announce this partnership with DSM through which we can further accelerate the industry transformation towards a more sustainable, circular economy. It is exciting to see how our 100% bio-based and waste plastic based products enable DSM to produce its high performance polymers portfolio with a reduced environmental footprint.”

Media contacts:

Jeroen Verhoeven, Vice President Production Partners Management, Renewable Polymers & Chemicals, Neste. Please contact Neste’s media service, tel. +358 50 458 5076 / media@neste.com (weekdays between 8:30 a.m. and 4:00 p.m. EET).

Jos van Haastrecht, Director External Affairs and Communications, DSM Materials, tel +31620963786, media.contacts@dsm.com

Neste in brief

Neste (NESTE, Nasdaq Helsinki) creates solutions for combating climate change and accelerating a shift to a circular economy. We refine waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. We are the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. We aim at helping customers to reduce greenhouse gas emissions with our renewable and circular solutions by at least 20 million tons annually by 2030. As a technologically advanced refiner of high-quality oil products with a commitment to reach carbon-neutral production by 2035, we are also introducing renewable and recycled raw materials such as waste plastic as refinery raw materials. We have consistently been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies. In 2019, Neste’s revenue stood at EUR 15.8 billion, with 82% of the company’s comparable operating profit coming from renewable products. Read more: neste.com and www.neste.com/companies/products/plastics

DSM – Bright Science. Brighter Living. ™

Royal DSM is a purpose-led global science-based company in Nutrition, Health and Sustainable Living. DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders. DSM delivers innovative business solutions for human nutrition, animal nutrition, personal care and aroma, medical devices, green products and applications, and new mobility and connectivity. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 23,000 employees. The company is listed on Euronext Amsterdam. More information can be found at www.dsm.com.

SOURCE: NESTE CORPORATION