Neste is the largest producer of renewable feedstocks and SAF in the world, with production in Finland, Netherlands, and Singapore. How has the expansion in Singapore augmented Neste’s capacity?

In 2024, our global capacity will reach about 5.5 MT, also driven by the expansion of our Singapore refinery. Singapore will then constitute close to half of our capacity, with 2.6 MT of renewables capability, of which 1 MT can be SAF. Our renewable products use 100% renewable raw materials coming primarily from various waste and residue streams like used cooking oil or animal fat waste. Using our proprietary technology, we convert these sources into high-quality fuels and polymer feedstocks. 

Through the 1.6 billion euros expansion completed in Singapore, we increased the size of our refinery from 19 hectares to 45 hectares, making the facility the largest SAF production site in the world. Besides the refinery, Neste also invested in its first R&D facility outside of our HQ in Finland: The APAC Innovation Center in Singapore focuses on raw material and pre-treatment processes research to support our growth in APAC. Singapore is also our commercial hub for the region, set within a network of other offices in China, India, and Australia. 

How does Neste RE polymer feedstock compare to a naphtha feedstock?

By replacing fossil raw materials in the polymers and chemicals industry with Neste’s bio-based feedstock, we can reduce GHG emissions by more than 85% over the life cycle. The world tends to focus on Scope 1 and Scope 2 emissions, yet the Scope 3 emissions for plastic-based consumer goods applications can be 10 times higher, especially as end-of-life products end in incinerators. Beyond the indubitable carbon savings, we offer an easy-to-implement and safe solution, compatible with highly regulated applications like the food industry. Compared to some other solutions in the market, Neste’s is a drop-in solution that does not require any additional investment in the asset from users deciding to go for our bio-based feedstock. Our customers can simply replace traditional feedstocks with bio-based ones, with the guarantee of the same properties and a significantly reduced carbon footprint.

How does the cost difference play out in terms of product uptake?

If you compare producing a fossil molecule with producing a bio-based molecule, the costs are higher for the latter. But the costs of climate change, from wildfires to flooding and other extreme weather events, together with ocean plastic pollution among the most visible but surely not the only impacts, warrant a mentality shift. One problem we have as a society is that fossil resources are too cheap: The cost of virgin fossil plastics does not nearly cover all of the destructive effects it has on humankind. Fortunately, more and more consumers and brand owners are realizing that the price difference for a molecule that does not take carbon from the ground pays off unmeasurably. For an object like a computer mouse, the cost difference of a sustainable feedstock passed on to the consumer will be a couple of cents. 

As part of a beach clean-up I took part in, I played a mental game of imagining that I am looking for gold, rather than waste, while still picking up rubbish from the shore. Spoiler: I didn’t find any gold, only plastic waste. It made me think, if waste was more valuable, more like gold, people would change their behavior and stop throwing it away. Right now, plastic is cheap and disposable. There is a paradigm shift we need to overcome as a society.

Could you briefly touch upon Neste’s recycling facility?

At the moment, only some 10% of plastics are recycled globally. As Neste, we want to contribute to increasing that. We are therefore processing liquefied waste plastic into high-quality feedstock for new plastics. The liquefied waste plastic is sourced from various partners, who liquefy hard-to-recycle waste plastic e.g. through pyrolysis or hydrothermal liquefaction. We are then upgrading and refining these liquids. So far, we have upgraded more than 6,000 tons of liquefied waste plastic into quality feedstocks already in the course of trial runs. At the moment, we are building a facility – in the course of a project called PULSE, which is also funded by the EU – to continuously process 150,000 tons per year. Our long-term goal is to process more than 1 million tons of waste plastic each year.     

Singapore mandated the use of 1% SAF for flights leaving from Changi Airport beginning in 2026. What’s the significance of this decision? 

The Singaporean government adopted a national sustainable aviation fuel (SAF) target as part of its Sustainable Air Hub Blueprint. The SAF target of 1% in 2026 to raise this to 3-5% by 2030 is an encouraging and positive step towards reducing the climate impact of aviation and sends an important signal that will encourage the wider adoption of SAF across the broader Asia Pacific region. Sustainable Aviation Fuel is a key lever to achieving the goal of net zero carbon emissions by 2050 and governments play a crucial role in translating that ambition to targets and policy frameworks. As the world’s leading producer of SAF, Neste is fully committed to supporting the aviation industry to reach its emission reduction goals. 

What are the main growth avenues pursued by Neste moving forward in the biopolymer space?

400 MT of virgin plastics are produced globally every year, more than half of it in Asia. Global production is projected to reach 600 MT by 2030. We have an important role to play in helping the industry become more sustainable by replacing fossil resources. But we can only do so if all players across the value chain are closely working together. There is no isolated perfect solution. With everyone in the industry looking at how we can reduce the use through alternative raw materials, process design, reuse plastics, and recycle mechanically or chemically, we can reach a perfect solution. Demand for plastics will continue to grow, and the worst we can do is to take carbon from the ground to meet that demand.