Covestro, SK, Neste to partner for renewable MDI in APAC region

9:30 AM, 22nd June 2022
First shipment of renewable benzene leaves the Ulsan harbour in South Korea.

LEVERKUSEN, GERMANY: Covestro, South Korean petrochemical company SK geo centric and Neste are cooperating to enable the production of a major polyurethane raw material based on renewable raw materials via mass balance. The cooperation will see Neste provide SK geo centric with renewable Neste RETM, an ISCC certified feedstock for polymers and chemicals made from 100 percent renewable raw materials such as waste and residue oil and fats.

SK geo centric will process this feedstock into benzene at the company’s facilities in South Korea and supply it to Covestro to use as raw material for methylene diphenyl diisocyanate (MDI) at its site in Shanghai, China. MDI is a key raw material for the manufacture of rigid polyurethane foam, which is a well-proven insulating material for buildings and used in the cold chain helping to save CO2 emissions and reduce energy consumption during its product life.

The cooperation marks the start of possible future collaborations between the three companies, aiming at replacing fossil feedstocks by more sustainable ones in the production of polymers and chemicals in the APAC region and beyond.

"With renewable solutions available, we are now entering the phase of scaling up their usage in the chemical industry," said Mercedes Alonso, executive vice president, renewable polymers and chemicals at Neste. "This will be crucial in replacing the vast amounts of fossil resources the industry is currently depending on. To make this ramp-up a success, we’ll need to establish collaborations along the value chain – and this one between three sustainability-minded partners is a prime example of how the industry can do just that."

Replacing the common crude oil-based fossil feedstock with Neste RE provides a significant reduction in greenhouse gas (GHG) emissions, thereby improving the carbon footprint of the polyurethane raw materials produced by Covestro and of downstream industries. Neste RE is produced with renewable raw materials such as waste and residue oils and fats.

"I am much pleased that through this collaboration we continue to ramp up the market for 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, chief commercial officer of Covestro. "Using such materials 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."

"We are delighted to ship and export our first renewable Benzene produced with 100 percent renewable Neste RE feedstock," said Woohyuk-Choi, vice president of SK geo centric’s Aromatic Business Unit. "SK geo centric will actively work with Covestro and Neste as we mark the first collaboration of this kind in the Asia-Pacific region.”

Under the strategy of "Green for Better Life", SK geo centric announced its ambitious target to become "Net-Zero" before 2050. To fulfill its responsibility, the company will drive its business transformation by expanding its high-quality renewable products portfolio. SK geo centric will respond to increasing global demands in the market by leveraging the strong synergies between collaboration partners.


© Worldofchemicals News

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


IMCD Food & Nutrition to launch pilot plant in Belgium

ROTTERDAM, THE NETHERLANDS: IMCD said it launched a new meat, fish and plant-based pilot plant located in Mechelen, Belgium, as part of the expansion ...

Read more
Archroma to launch new air purification textile technology

PRATTELN, SWITZERLAND: Archroma launched Perapret® AIR liq, a new industry-leading, light-activated air purification technology for all kinds of f ...

Read more
ExxonMobil, Neptune Energy & partners to develop carbon capture, storage project in Dutch North Sea

BREDA, THE NETHERLANDS: Neptune Energy, ExxonMobil subsidiary XTO Netherlands Ltd, Rosewood Exploration Ltd and EBN Capital BV announced the signing o ...

Read more
BASF to build battery recycling black mass plant in Germany

LUDWIGSHAFEN, GERMANY: BASF said it will build a commercial scale battery recycling black mass plant in Schwarzheide, Germany. This investment strengt ...

Read more
Godrej, Tvasta-IIT-M start-up develop 3D construction printing tech in India

MUMBAI, INDIA: Godrej & Boyce, the flagship company of the Godrej Group, announced that its business, Godrej Construction has partnered with Tvast ...

Read more
ESL Shipping, Neste sign marine fuel deal for vessels in Finland & Sweden

ESPOO, FINLAND: Finnish shipping company ESL Shipping will become the world's first shipping company to start utilizing new low-emission Neste Marine& ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X