EIC Corporate Corner with Neste: Targeted bets on hydrogen, feedstocks and plastic recycling
- ›Neste co‑hosted an EIC Corporate Day on 23-24 November 2021 to source climate tech for transport, chemicals and polymers.
- ›Antti Ritala, Head of Venturing and Acquisitions at Neste, seeks minority investments and joint development partnerships in scalable renewable and circular solutions.
- ›Neste prioritises four investment verticals: lignocellulosic feedstocks, new aviation solutions, renewable hydrogen and power to X, and scalable recycling and industrial decarbonisation.
- ›Investment targets are typically TRL 6 or above, in Series A and B, with tickets of about 1 to 15 million euros.
- ›Neste highlighted active projects with Sunfire on electrolysers and with Alterra Energy on chemical recycling as examples of its strategy.
Neste and the EIC: well thought out corporate moves for sustainable growth
On 23 and 24 November 2021 the European Innovation Council and Neste organised a Corporate Day that brought 15 EIC beneficiaries before the Finnish energy company. Neste is best known as a large producer of renewable diesel and sustainable aviation fuel and as an industrial actor developing chemical recycling for plastics. The matchmaking event was positioned as a way to identify scalable climate technologies across transportation, polymers and chemicals. After the event the EIC interviewed Antti Ritala, Head of Venturing and Acquisitions at Neste, about the companys approach to corporate venturing and open innovation.
Role and remit: what Nestes venturing team does
Open innovation in practice
Neste describes open innovation as essential to scale the low carbon and circular technologies it needs. The company works with universities, research institutions, startups and other corporates to co-develop solutions. Ritala argues that the speed required to address climate change means no single company can master every deep tech area alone. That logic underpins partnerships such as a collaboration with Sunfire on electrolysers and a joint development program with Alterra Energy on chemical recycling.
Examples on the ground: Sunfire and Alterra
Ritala highlighted two portfolio examples that illustrate Nestes approach. The first is a joint demonstration project with Sunfire centred on electrolysers for green hydrogen production. The second is an investment and joint development program with Alterra Energy focused on chemical recycling of plastic waste. Both projects touch on core technology and scaling challenges in their sectors.
Why Neste works with the EIC
Neste positions the EIC as a strategic partner that accelerates access to a pipeline of innovative SMEs across Europe. The company also participates in the EIC Venture Capital Community and envisages co-investments with the EIC fund going forward. Ritala emphasised two motivations for partnering with the EIC. One is access to a curated portfolio of high quality companies via a blended financing approach. The other is the geographical reach. During the Corporate Day participants represented ten different countries across Europe which matters for sourcing diverse technologies and business models.
What Neste will consider for co-investment and partnerships
Ritala set out four main criteria that guide Nestes decisions about co-investments and partnerships. These criteria combine strategic fit, technology readiness, commercial potential and team quality. They also define the companys preferred stage and ticket size for investments.
| Criteria | Details |
| Strategic verticals | Lignocellulosics, new aviation feedstocks and pathways such as algae or municipal solid waste, renewable hydrogen and power to X, and other scalable recycling, mobility and industrial decarbonisation solutions |
| Technology maturity and stage | Technology readiness level 6 or higher. Typically Series A and B financing rounds. |
| Investment size | Typical minority tickets from 1 to 15 million euros. |
| Differentiation and competitiveness | Innovative solutions with a measurable advantage and potential for sustainable competitiveness. |
| Scalability and business potential | Clear route to global scale and sustained market impact. |
| Team | Founders and management with the ability to grow and deliver on partnerships. |
Advice for startups engaging with Neste
Ritala urged startups to approach Neste directly if they have promising renewable or circular solutions for transport or chemicals. He asked that startups clearly state their objectives when they reach out. Specifically he wants to know whether the startup seeks capital, a development partner, a customer relationship, or a combination of these. Clarity speeds evaluation and makes productive collaborations more likely.
Context and caveats for corporates and startups
Nestes approach mirrors broader trends in European corporate venturing. Corporates are hunting for late pre commercial technology that can be co-developed and integrated into existing value chains. Targeting TRL 6 and above and Series A and B rounds is rational for a company that needs de risked technologies it can pilot and scale. The trade off is that these startups have already attracted some investor interest and may command higher valuations.
Tools and next steps
Ritala also referenced the EICs wider support tools for beneficiaries. One is the EIC GHG Tool which helps EIC recipients calculate and monitor greenhouse gas emissions and simulate mitigation measures. For startups that expect to partner with corporates and access public funds such tools can help demonstrate environmental performance and strengthen investment cases.
The Corporate Day with Neste illustrates a pragmatic corporate venturing model. The company is explicit about stage, ticket size and sectors of interest. That clarity helps startups qualify opportunities quickly. At the same time the usual questions about lifecycle benefits, scale economics and governance remain relevant. Corporate partners, public funders and startups will need sustained attention to those issues if the technologies presented at these events are to deliver large scale climate impact.
Disclaimer This article is based on an EIC interview with Antti Ritala and EIC event materials. It is intended for informational purposes and should not be read as an official view of the European Commission.