Finland’s Neste [NESTE:FH], a world-leading supplierof renewable petroleum and petroleum products, formed a partnership with South Korean chemical company Lotte Chemical [011170:KS] to produce chemicals and plastics with lower emissions, as reported by Reuters on April 8. As part of the collaboration, Neste will provide Neste RE™, a raw material for chemicals and plastics, that is made entirely from renewable raw materials. Lotte Chemical will adopt this material at its Korean factories to replace fossil resources in chemicals and plasticsmanufacturing. These plastics and chemicals can be widely applied in multiple areas, such as packaging, construction, textiles, and electronics, enabling an effective reduction in carbon footprints without changingthe quality and performance of the end products.

Neste is committed to providing renewable fuels and sustainable petroleum materials to help its customers lower their supply chain carbon emissions and related environmental impact. It has set out targets to reduce the greenhouse gas emissions of its customers by at least 20 million tons annually by 2030, targeting carbon-neutral production by 2035. The partnership with Lotte Chemical aims for more sustainable supply chains that could benefit various manufacturing sectors. Both two companies recognize the need to transition to more sustainable alternatives to fossil resources, aiming to effectively decarbonize the production of chemicals and plastics that still largely rely on fossil materials.

Sources:

https://www.reuters.com/sustainability/neste-supply-renewable-raw-materials-s-koreas-lotte-chemical-2024-04-08/

https://www.neste.com/news/neste-and-lotte-chemical-team-up-on-renewable-chemicals-and-plastics

https://www.neste.com/about-neste/who-we-are/neste-strategy