Evonik and Celtic Renewables Collaborate on Sustainable Cosmetics Ingredients

Scottish biorefinery turns whisky waste into cosmetic emollient

Evonik and Celtic Renewables have launched a supply chain partnership that converts distillery by-products and rejected potatoes into a cosmetic ingredient. The collaboration delivers bio-butanol derived from Scottish waste streams for use in personal care formulations. Consequently, this creates a direct link between food and drink waste, renewable chemistry, and reduced reliance on fossil-derived cosmetic ingredients.

Celtic Renewables processes whisky pot ale and surplus potatoes at its biorefinery in Scotland. The facility produces bio-butanol that Evonik then uses to manufacture ECOHANCE® Soft BOL, an emollient designed for cosmetics and personal care applications. Both companies are now examining additional applications for Celtic Renewables’ bio-based chemical outputs across other product categories.

This partnership matters because it demonstrates a working model for circular manufacturing. Rather than treating distillery residues as disposal problems, the process captures value from materials that would otherwise require waste management. Furthermore, the resulting ingredient can slot into existing cosmetic formulations without requiring wholesale product redesign.

From distillery residue to personal care ingredient

Celtic Renewables sources its feedstock from local Scottish suppliers. Whisky pot ale is a liquid by-product of whisky distillation, produced in substantial volumes across Scotland’s distilling sector. The company combines this with potatoes rejected from food supply chains due to appearance or size specifications that make them unsuitable for retail sale.

The biorefinery converts these materials into bio-butanol and bio-acetone through fermentation processes. Importantly, these bio-based chemicals are molecularly identical to their petrochemical equivalents. This compatibility means manufacturers can use them in existing production systems without technical modification or performance compromise.

Celtic Renewables positions its outputs as drop-in replacements for conventional butanol and acetone across multiple sectors. Applications include personal care, pharmaceuticals, laboratory chemicals, and household cleaning products. The chemicals function in the same way as fossil-derived versions, which removes a significant barrier to commercial adoption.

Evonik uses the bio-butanol to produce ECOHANCE® Soft BOL, a cosmetic emollient that provides texture and skin-feel properties in formulations. Emollients are widely used in lotions, creams, and other personal care products to improve application characteristics and sensory experience. The bio-based version offers the same functional performance as conventional emollients derived from petrochemical sources.

Why personal care supply chains face pressure to decarbonize

Cosmetic companies are dealing with intensifying scrutiny over their environmental footprint. Scope 3 emissions, which cover indirect emissions throughout the supply chain, typically account for the largest share of a cosmetics company’s total carbon impact. Consequently, addressing these emissions requires changes to ingredient sourcing and supplier partnerships rather than just operational improvements.

Regulatory pressure is increasing across multiple fronts. EU regulations on environmental claims are tightening, with new rules targeting unsubstantiated sustainability statements. UK businesses supplying European markets must navigate these requirements even post-Brexit. Meanwhile, public sector procurement in the UK now includes carbon reduction commitments, affecting suppliers across all categories including facility management and employee benefits that use personal care products.

Supply chain transparency has become a competitive requirement, not just a reputational consideration. Large retailers and contract manufacturers are asking suppliers to disclose ingredient origins, processing methods, and lifecycle impacts. Brands that cannot provide credible data face exclusion from tenders and retail listings.

Renewable inputs offer one route to reducing supply chain emissions, but not all bio-based materials deliver meaningful environmental benefits. Industry guidance from organizations including NATRUE emphasizes that sustainable cosmetic ingredients must demonstrate genuine lifecycle improvements. Specifically, ingredients are now evaluated on traceability, verified environmental impact, and credible sourcing claims rather than simply being marketed as natural or plant-derived.

This scrutiny creates both risk and opportunity for UK SMEs. Businesses that can verify their ingredient choices with robust data gain an advantage in procurement processes. Those relying on generic sustainability claims without supporting evidence increasingly find themselves challenged by buyers and regulators alike. Therefore, partnerships like the Evonik and Celtic Renewables collaboration matter because they provide traceable, waste-derived inputs with clear circular economy credentials.

The shift towards renewable chemistry also aligns with broader net zero commitments. Many cosmetic brands have set carbon reduction targets that require them to decarbonize their ingredient base. Fossil-derived ingredients carry embedded emissions from extraction and processing. Bio-based alternatives sourced from waste streams avoid much of this carbon burden, particularly when the feedstock would otherwise require disposal or treatment.

What makes this partnership commercially significant

Several features distinguish this collaboration from typical ingredient launches. First, the bio-butanol comes from genuinely waste materials rather than purpose-grown crops. This matters because crop-based bio-feedstocks can raise questions about land use, food security, and overall environmental benefit. Using distillery residues and rejected potatoes sidesteps these concerns entirely.

Second, the ingredients are drop-in compatible with existing formulations. Cosmetic manufacturers can substitute ECOHANCE® Soft BOL for conventional emollients without reformulating products or changing production processes. This compatibility dramatically reduces the cost and complexity of adoption compared to novel ingredients that require technical validation and consumer testing.

Third, the partnership creates a replicable model. Scotland produces whisky at industrial scale, generating consistent volumes of pot ale that require management. Similarly, potato rejection rates from food supply chains provide a reliable feedstock. Consequently, the biorefinery operates on predictable material flows rather than depending on inconsistent waste collection.

Fourth, both companies bring established market positions. Evonik is a major specialty chemicals manufacturer with existing cosmetic ingredient customers. Celtic Renewables operates a functioning biorefinery with demonstrated production capability. Therefore, this partnership connects proven supply with established distribution rather than relying on unproven technology or speculative market development.

Evonik has stated that a substantial portion of its cosmetic ingredients are already fully bio-based. This indicates that the Celtic Renewables partnership fits within a broader strategy to expand renewable feedstock sourcing. For businesses buying Evonik ingredients, this suggests growing availability of bio-based options across the product range rather than isolated niche offerings.

The collaboration also addresses a practical challenge for UK manufacturers. Finding credible, traceable, low-carbon ingredients with UK or near-UK sourcing can be difficult. This partnership delivers Scottish-sourced, waste-derived inputs that reduce transport emissions and provide clear provenance documentation. For businesses facing supply chain due diligence requirements, this level of transparency carries real commercial value.

Key details about the partnership and its outputs

• Celtic Renewables converts whisky pot ale and rejected potatoes into bio-butanol at its Scottish biorefinery using fermentation processes.
• Evonik uses this bio-butanol to manufacture ECOHANCE® Soft BOL, an emollient for cosmetic and personal care formulations that functions identically to conventional petrochemical alternatives.
• The bio-based chemicals are drop-in compatible with existing production systems, meaning manufacturers can adopt them without technical modification or reformulation work.
• Both companies are exploring additional applications for Celtic Renewables’ bio-acetone and bio-butanol in sectors including pharmaceuticals, laboratory chemicals, and household cleaning products.
• The partnership demonstrates a circular economy model by converting food and beverage industry waste into valuable chemical feedstocks for personal care manufacturing.
• Available sources do not provide specific figures for production volumes, emissions reductions, or commercial launch scale for this particular collaboration.

Considerations for businesses buying or specifying cosmetic ingredients

This development matters if you manufacture personal care products, specify ingredients for contract production, or manage procurement for businesses that buy cosmetics in volume. The availability of traceable, waste-derived ingredients creates options that were previously unavailable or commercially impractical. However, several factors deserve attention when evaluating whether these materials suit your requirements.

Performance equivalence is the first consideration. Bio-based ingredients must match the functional characteristics of the materials they replace. ECOHANCE® Soft BOL is positioned as a direct substitute for conventional emollients, which suggests comparable performance. Nevertheless, you should verify compatibility with your specific formulations through testing rather than assuming equivalence without validation.

Supply security matters for any ingredient change. Celtic Renewables operates a functioning biorefinery with access to consistent waste feedstocks from Scottish distilleries and potato suppliers. This provides more supply certainty than partnerships dependent on variable waste collection or experimental production processes. Even so, you should understand production capacity, lead times, and contingency arrangements before committing to formulation changes.

Verification and documentation are increasingly important for environmental claims. If you plan to market products based on bio-based or waste-derived ingredients, you need robust evidence to support those statements. Evonik and Celtic Renewables should be able to provide traceability documentation, feedstock verification, and lifecycle data. Make sure you secure this information before making public claims about your products’ environmental credentials.

Cost implications vary depending on your current ingredient sources and volumes. Bio-based specialty chemicals sometimes carry a price premium compared to established petrochemical equivalents, though this gap has narrowed as production scales and fossil fuel prices fluctuate. You should model the total cost impact, including any reformulation work, testing requirements, and packaging or marketing updates needed to communicate the change to customers.

Regulatory compliance remains your responsibility regardless of ingredient sourcing. Bio-based cosmetic ingredients must meet the same safety, labeling, and registration requirements as conventional materials. Check that any new ingredient has appropriate regulatory approvals for your target markets, including UK and EU cosmetic regulations as applicable. Our compliance support services can help you navigate these requirements and ensure your ingredient choices meet all necessary standards.

Procurement strategy should consider how ingredient choices affect your competitive position. If your customers or buyers increasingly request evidence of carbon reduction or circular economy practices, switching to verified waste-derived ingredients strengthens your response. Public sector contracts in particular may include social value or carbon reduction criteria where documented ingredient improvements contribute to scoring. Therefore, understanding the strategic value of ingredient changes matters as much as the direct cost calculation.

For businesses working towards net zero commitments, ingredient sourcing represents a significant lever for Scope 3 emissions reduction. Personal care manufacturers typically find that raw materials account for a substantial share of product lifecycle emissions. Consequently, shifting to bio-based inputs from waste feedstocks can deliver measurable progress towards carbon reduction targets, provided you have robust data to quantify the impact. Our net zero program helps businesses measure, verify, and report these improvements in ways that meet compliance requirements and support procurement opportunities.

Where to find additional information and guidance

The UK government provides resources on sustainable business practices and circular economy principles through the Department for Energy Security and Net Zero. This includes guidance on carbon reporting, net zero strategy, and environmental claims.

The Environment Agency offers information on waste regulations, by-product protocols, and environmental permitting that may be relevant for businesses handling food and drink industry residues or manufacturing with bio-based chemicals.

For businesses selling cosmetics in UK and EU markets, the UK government’s cosmetics regulation guidance covers safety requirements, labeling standards, and market authorization for cosmetic products and ingredients.

Companies requiring support with carbon measurement, sustainable procurement, or compliance documentation for public sector contracts can find specialist assistance through professional sustainability consultancies. Our procurement support services help SMEs demonstrate environmental credentials in tender responses and meet buyer requirements for supply chain transparency.