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. The agreement is said to be the first in North America to generate plastic source materials from maize stover (stalks and leaves). This is also Dow's first agreement in North America to utilize agriculture residues for plastic production.
Karen S. Carter, Dow President of Packaging & Specialty Products, said: "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 maize 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 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."
