Innovation is in Neste’s DNA. Innovation has enabled our transformation towards global leadership in renewable and circular solutions, and it is the driving force of our strategy to ensure the future success of Neste.
Our core approach is to convert low quality raw materials into high-quality solutions. We are continuously working towards increasing the availability of renewable and recycled raw materials, while also developing technologies to diversify our current raw material portfolio. Our long-term business development and innovation take place on several fronts:
- Lignocellulose – Forestry and agricultural waste and residues;
- Algae – Cultivation of carbon dioxide absorbing microalgae;
- Municipal solid waste – Various fractions of municipal solid waste that currently cannot be or are not recycled;
- Renewable hydrogen – Renewable (green) hydrogen from electrolysis, which reduces refinery GHG emissions; and
- Power-to-X – PtX technology combines renewable electricity and captured carbon dioxide to produce sustainable fuels and materials.
We are targeting industrial-scale operations in at least one platform by 2030. These globally scalable raw material pools, together with related technologies, will play an important role in further reducing dependence on crude oil and tackling climate change.
In addition to exploring new growth opportunities, we constantly develop, test and analyze our existing renewable and circular solutions. Approximately 25% of our personnel work with topics related to innovation, research, product development and engineering. We have dedicated teams exploring and developing our Innovation business platforms towards commercialization.
We invest the majority of our annual R&D expenditure in innovation, research and development, and testing raw materials and the technologies that could enable their use. In 2022, our R&D expenditure was EUR 85 million.
Extensive collaboration network
Innovation requires partnering and cooperation. Neste is already collaborating with a network of 25 leading universities and research institutes, and we continue to expand and intensify our cooperation with them. We work with technology companies, startups and value chain partners to introduce innovations in renewable and circular solutions to global-scale businesses. We have also established corporate venture activity to invest in technology startups.
Read more about Innovation at Neste.