Dow, a global chemical company, has entered into a significant long-term supply agreement with New Energy Blue in North America. The partnership aims to produce bio-based ethylene from renewable agricultural residues, specifically corn stover (stalks and leaves).
This collaboration marks Dow’s commitment to reducing carbon emissions in plastic production and utilizing sustainable feedstocks for recyclable applications in various industries such as transportation, footwear, and packaging.
Unlocking the Value of Agricultural Residues:
The agreement between Dow and New Energy Blue is the first of its kind in North America to generate plastic source materials from corn stover. By tapping into the expertise of New Energy Blue’s bio-conversion ventures, Dow aims to leverage agriculture residues as a valuable resource for plastic production. This strategic collaboration not only promotes waste recycling but also meets the growing demand for bio-based plastics while supporting a diverse and renewable ecosystem.
Supporting the Design of New Energy Freedom:
As part of the agreement, Dow is providing support in designing New Energy Freedom, a new facility located in Mason City, Iowa. The facility is expected to process 275KT (kilotonnes) of corn stover annually, producing commercial quantities of second-generation ethanol and clean lignin. Almost half of the ethanol will be used to create bio-based ethylene feedstock for Dow’s products. Additionally, Dow has secured similar supply options for four future New Energy Blue projects, enabling scalability of production and providing a reliable market for agricultural residues. Collectively, these five projects are anticipated to displace over one million tons of greenhouse gas emissions each year, contributing to Dow’s commitment to reducing fossil fuel sourcing and subsequent emissions.
Advancing Material Ecosystems and Circular Products:
Dow’s agreement with New Energy Blue aligns with the company’s vision of building material ecosystems that value, source, and transform waste into circular products. By collaborating with leading partners and technologies in waste collection, reuse, and recycling, Dow demonstrates its commitment to the global scaling of sustainable material ecosystems. The utilization of renewable feedstocks, such as agriculture-based plastics, not only aids in achieving Dow’s Transform the Waste and Net Zero CO2 goals but also paves the way for future sustainability commitments.
Redefining Raw Material Sourcing:
The collaboration between Dow and New Energy Blue represents a paradigm shift in raw material sourcing for products, allowing for the inclusion of renewable feedstocks. By utilizing bio-based plastics derived from renewable resources, Dow aims to reduce carbon emissions from farming, support rural communities, and produce sustainable, low-carbon plastics for everyday use. This partnership also presents opportunities for leveraging various biomass sources, from grain straws to tall perennial grasses, beyond corn stover, to further reduce carbon emissions.
Economic Value for Farmers and ISCC Plus Certification:
Dow’s supply agreement with New Energy Blue not only benefits the company but also creates economic value for farmers by opening a dependable new market for their corn stover. The forthcoming Iowa processing facility will directly source corn stover from local farmers, providing them with an additional income stream while promoting farming practices that increase carbon retention in the soil. Moreover, Dow’s use of bio-based feedstocks from New Energy Blue is expected to be certified by ISCC Plus, ensuring traceability and sustainability within the supply chain.