First-of-its-kind agreement in North America would create bio-based ethylene
for Dow's U.S. Gulf Coast assets to produce renewable plastics
across fast-growing end-markets
MIDLAND,
Mich., May 25, 2023 /PRNewswire/ -- Today, Dow
(NYSE: DOW) and New Energy Blue announced a long-term supply
agreement in North America in
which New Energy Blue will create bio-based ethylene from renewable
agricultural residues. Dow expects to purchase this bio-based
ethylene, reducing carbon emissions from plastic production, and
using it in recyclable applications across transportation,
footwear, and packaging.
Dow's agreement with New Energy Blue, staffed by experts with
deep experience in bio-conversion ventures, is the first agreement
in North America to generate
plastic source materials from corn stover (stalks and leaves). This
is also Dow's first agreement in North
America to utilize agriculture residues for plastic
production.
"We are unlocking the value of agriculture residues in this new
partnership with New Energy Blue," said Karen S. Carter, Dow President of Packaging
& Specialty Products. "By committing to purchase their
bio-based ethylene, we are helping to enable innovations in waste
recycling, meeting demands for bio-based plastics from customers,
and strengthening an ecosystem for diverse and renewable
solutions."
Under the terms of the agreement, Dow is supporting the design
of New Energy Freedom, a new facility in Mason City, Iowa, that is expected to process
275KT of corn stover per year and produce commercial quantities of
second-generation ethanol and clean lignin. Nearly half of the
ethanol will be turned into bio-based ethylene feedstock for Dow
products. This agreement also gives Dow similar commercial supply
options for the next four future New Energy Blue projects,
supporting New Energy Blue's ability to scale its production and
support farmers by providing a reliable market for agricultural
residues. The five projects are expected to displace over one
million tons of greenhouse gas (GHG) emissions every year. Dow's
share of these five projects will also lead to a reduction in its
sourcing of fossil fuels and subsequent GHG emissions.
This agreement would play a pivotal role in Dow's approach to
building material ecosystems that value, source, and transform
waste into circular products. By collaborating with the best
partners and technologies for collection, reuse, and recycling of
waste – in this case, using a renewable resource – Dow enables
global material ecosystems to scale.
"This collaboration can help redefine how we source raw
materials for our products, allowing us to expand to include
renewable feedstocks," said Manav
Lahoti, Dow Global Sustainability Director -Olefins,
Aromatics & Alternatives. "We're excited by the possibility for
agriculture-based plastics to help our company achieve both our
Transform the Waste goal and our Net Zero CO2 goal. It also aligns
with our ambition to increase renewable resource use, paving the
way for future commitments."
"We're excited to be working with Dow to find solutions that
create bio-based plastics from renewable resources," said
Thomas Corle, CEO of New Energy
Blue. "Together, we're building a future not only in the farm
fields of Iowa using corn stover,
but across America and around the world using a variety of biomass
from grain straws to tall perennial grasses—wherever there's an
opportunity to reduce carbon emissions from farming, support
farmers in rural communities, and enable the production of the
sustainable, low-carbon plastics used in everyday life."
Through this agreement, Dow would increase its use of
renewable yet still recyclable resources, transforming them
into products that consumers use every day. Since corn stover
releases carbon dioxide into the atmosphere as it decomposes, Dow's
agreement with New Energy Blue would also help reduce carbon
emissions from agriculture by reusing this otherwise wasted
carbon.
Dow's use of bio-based feedstocks from New Energy Blue is
expected to be certified by ISCC Plus, an international
sustainability certification program with a focus on traceability
of raw materials within the supply chain. While Dow intends to mix
agriculture-based ethylene into its existing manufacturing process,
ISCC Plus's chain of custody certification would allow Dow's
customers to account for bio-based materials in their supply
chains.
Dow's supply agreement with New Energy Blue would create
additional economic value for farmers by opening a dependable new
market. New Energy Blue's forthcoming Iowa processing facility would source corn
stover directly from local farmers every year. Because U.S.
farmers' grain yield per acre is among the world's highest, their
stover density is correspondingly high. By selling their excess
stover for biomass refining, they could reap an excellent second
income from the same crop while using farming practices that
increase carbon retention in the soil.
About Dow
Dow (NYSE: DOW) combines global breadth;
asset integration and scale; focused innovation and materials
science expertise; leading business positions; and environmental,
social and governance leadership to achieve profitable growth and
help deliver a sustainable future. The Company's ambition is to
become the most innovative, customer centric, inclusive and
sustainable materials science company in the world. Dow's portfolio
of plastics, industrial intermediates, coatings and silicones
businesses delivers a broad range of differentiated, science-based
products and solutions for its customers in high-growth market
segments, such as packaging, infrastructure, mobility and consumer
applications. Dow operates manufacturing sites in 31 countries and
employs approximately 37,800 people. Dow delivered sales of
approximately $57 billion in 2022.
References to Dow or the Company mean Dow Inc. and its
subsidiaries. For more information, please
visit www.dow.com or follow @DowNewsroom on
Twitter.
About New Energy Blue
New Energy Blue, a
design/build/operate bio-conversion company, envisions a world that
runs on green energy in harmony with nature's carbon cycle and
developed the New Energy Biomass Refinery™, a bio-based platform
for replacing fossil fuels and chemicals by converting annual
agricultural residues and grasses into green renewables for
zero-carbon markets. Learn more at newenergyblue.com.
Media Contact
Whitney
Bolger – wbolger1@dow.com
Kyle Bandlow -
kbandlow@dow.com
Roger Moore –
rogermoore@newenergyblue.com
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SOURCE The Dow Chemical Company