Neste's Approach to Renewable and Circular Carbon Solutions
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Neste’s approach to renewable and circular carbon solutions Maiju Helin, Neste Renewable Polymers and Chemicals December 16 PLASTICS IN CARBON-NEUTRAL BIOCIRCULAR ECONOMY -webinar Our purpose is to create a healthier planet for our children. Renewable and Cleaner fuels Renewable circular solutions for on the roads jet fuel in polymers and the air chemicals Founded in rd 1948 3 most sustainable to secure oil supply Renewable company in the for the state of products production world (2020 Global Finland capacity 100) 3.2 → 4.5 World’s Mt/a In 2019, in 2023 #1 Neste's revenue stood at EUR producer of renewable diesel and sustainable aviation fuel (SAF) 15.8 billion 25% of employees working on R&D, engineering and innovation Renewable and recycled – the future of plastics We need to reduce the amount of carbon released in the atmosphere. We also need to innovate circular solutions where carbon is reused, again and again. 6 Neste developing more sustainable solutions for the polymers and chemicals industries with a focus on two areas Circularity Renewable Chemically recycling Renewable feedstock to waste plastic to new replace virgin fossil high-quality plastics feedstock in the and chemicals. production of a variety of plastics “6% of the global oil production is used to produce plastics, by 2050, this share could reach 20%.” (Source: European Commission) Global plastics production in 2035 Significant positive climate impact possible and expected to continue growing by replacing virgin fossil oil use with renewable & recycled alternatives Global plastics production Global jet fuel consumption Electric cars European plastics production Neste’s renewable fuel production in 2030 in 2030 in 2030 Demand for sustainable chemicals and polymers is growing, driven by consumers, governments, and brand owners Stakeholders driving the demand for renewable polymers Examples of brand owners’ commitment Public/consumer awareness • Is increasing with high media attention and campaigns 100% recyclable, reusable or compostable packaging by 2025 Regulatory pressure • EU ban on single-use plastic products • European Green Deal – roadmap for 100% recyclable, becoming climate-neutral by 2050 reusable or compostable packaging by 2025 Brand owners’ commitment • Continues to build up through 100% renewable sustainability pledges of industry or recycled plastics in the long-term players 9 We are committed to helping our partners make their business more sustainable 10 Neste closing the plastics loop together with value chain partners Compounder RENEWABLE POLYMERS Polymerization Distributor Reduction of fossil oil dependency & climate Bio-based Cracking emissions feedstock Converter Upgrading WASTE PLASTICS Brand owner Rethinking the end-of-life, circularity Liquefaction Retailer Waste management Consumer We can support brand owners to fulfill their sustainability commitments RENEWABLE C2 Polymers Waste and Composites Packaging residue oils as Fashion well as C3 vegetable oils C4 Ingredients NESTE Cracker Surfactants Furniture RECYCLED Personal C1 Emollients Liquefied and HYDROCARBONS NXBTL NXBTL care Construction purified RENEWABLE waste plastics HYDROCARBONS C5-9 Adhesives Automotive Coatings C10+ Sealants C2 Toys Electronics CONTINUOUS PORTFOLIO EXPANSION WHILE MEETING SUSTAINABILITY CRITERIA More sustainable plastics from renewable raw materials Renewable feedstock – NEXBTL technology Raw materials: Pre-treatment: NEXBTL process: Output: Around 10 The renewable raw Pre-treated raw 3.2 million tons of different raw materials are materials are processed Neste Renewables materials are purified based on Neste per year sourced around proprietary NEXBTL the world technology; 4 → 4.5 million tons production units globally in 2023 Renewable raw material mix Independent of Neste’s All renewable raw raw materials Waste and renewable raw materials Neste used, our residues account material portfolio uses are renewable for 80% of Neste’s consists of waste sustainably feedstock for renewable raw and residue oils produced* and polymers and material use and fats as well traceable to the chemicals have annually as vegetable oils place of origin consistent high quality *Meeting or exceeding e.g. EU RED requirements Targeting 100% wastes and residues by 2025 Drop-in solution for renewable polymers proven at commercial scale and ramping up to the demand of leading brands Achievements with partners World’s first commercial scale production of bio-based polypropylene from Neste renewable hydrocarbons Strong pipeline going forward World’s first commercial scale production of propylene from bio-propane • Developing additional partnerships Introduction of 11 new additives based on Neste and moving to regular business with renewable hydrocarbons current partners Collaboration to produce renewable plastics • Continued brand owner pull for drop-in solutions Product launch of cling film with bio-based based content • Expansion of offering for polymer and chemical industry Collaboration to produce sustainable packaging solutions 17 Solutions to speed up transition to a circular plastic economy - Chemical recycling of plastic waste EU’s Strategy for In Europe, some Plastics in a Circular Economy: 29 million tons increase recycling of post-consumer plastic of plastic and waste is generated reuse of plastic packaging by 2030. annually. In the EU Waste package, recycling target for plastic collected for recycling 1/3 packaging: 1/10 actually recycled 50% by 2025 55% by 2030 Neste’s ambitious goal is to process >1 Mt/a of waste plastic from 2030 onwards. Creating a higher value alternative for incineration and complementing mechanical recycling Re-use Used for same purpose Improved collection and sorting creates Material recycling Mechanically sorted and To be counted increasing amount (mechanical) re-granulated for use in new towards of plastic material products of too low quality recycling for mechanical recycling, Used as feedstock in the chemical targets but too high for Chemical recycling industry to make plastics and incineration petroleum products Energy recovery Converted to electricity and/or heat by incineration Reject No use, landfilled SOCIETY Focus on chemical recycling Neste focus Liquefaction Oil refining Collected Plastics and sorted Other Chemicals plastic Gasification processes waste Depolymerization Regeneration Plastics Solvolysis Thermochemical recycling of plastics means converting plastics by thermochemical liquefaction or gasification to feedstock for the chemical industry. This feedstock can replace crude oil based feeds in the production of plastics and other petroleum products, such as lubricants, bitumen and solvents. 22 Identical to conventional, fossil plastics and suitable for a variety of applications, e.g. Furniture Packaging Textile Consumer goods Toys Construction Automotive CASE Neste driving circularity Two new partnerships in chemical recycling The world’s leading distributor and recycler of One of the world's largest polymers. privately-owned recycling, service and water companies. ● Aim is to develop chemical recycling capacity, each collaboration project targeting an annual capacity to process over 200,000 tons of plastic waste (altogether 400,000 t/a). CASE Brand owner & Liquefaction technology provider In March 2020, Neste and Althelia Funds made a combined EUR 10 million investment into Recycling Technologies. The investment and technology development collaboration aims to accelerate technology commercialization Unilever joined the collaboration between Neste and Recycling ”Our collaboration with Neste will allow us to refine Technologies to develop and harness and improve our technology to produce valuable chemical recycling to recover and feedstock from waste plastic that can be reuse plastic packaging that is incorporated into the petrochemicals industry supply currently either incinerated, landfilled chain to increase the content of recycled plastic in or exported from the UK. Target is to new plastic production.” improve circularity ADRIAN GRIFFITHS, CEO & FOUNDER, RECYCLING TECHNOLOGIES LTD Plastics from Neste’s renewable raw materials and chemically recycled plastics Help reduce crude Fully compatible Comparable quality Suitable for reuse oil dependency by with existing to conventional and recycling, introducing production and plastics. There are contributing to bio-based or recycling no limitations to reduction of plastics recycled content infrastructures. their applications. waste. into end products. With Neste as a partner for plastics, there is no need to compromise on product safety, processing efficiency or recyclability. Building relationships beyond business Circular plastics value chain Leading the way towards a sustainable future together [email protected] 28.