The Netherlands-headed Royal DSM NV, a global science-based company active in nutrition, health, and sustainable living, has announced that it will start a strategic partnership with Finland-headed Neste Oyj, the world’s leading producer of renewable transportation fuels and a forerunner as a provider of renewable and circular solutions for the chemical industry, to enable the production of high-performance polymers.
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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 percent bio-based hydrocarbons. These polymers are used, for example, in the automotive, electronics, and packaging industries.
This enables DSM and its customers to reduce the carbon footprint of their own products whilst supporting the industry to transition to a circular economy. Over the short term, the collaboration aims to replace several thousand tonnes of fossil feedstock in the production of polymers with alternative, sustainable feedstock: bio-based and waste plastic based hydrocarbons.
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, said Shruti Singhal, President DSM Engineering Materials.
Recycled and bio-based feedstock
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 production of the polymer, Neste’s products are suitable for existing production infrastructures and enable 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.
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 percent bio-based and waste plastic-based products enable DSM to produce its high-performance polymers portfolio with a reduced environmental footprint, said Mercedes Alonso, EVP Renewable Polymers and Chemicals at Neste.
