In Michigan, chemicals major Dow has secured biobased ethylene supply from New Energy Blue for production of renewable polyethylene. The PE will be used in applications such as transportation, footwear, and packaging.
New Energy Blue’s ethylene is produced from corn crop waste, including stalks and leaves, and has a significantly lower carbon footprint compared to ethylene produced from fossil fuels. It is Dow’s first agreement in North America to utilize agriculture residues for plastic production.
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 275,000 tons 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 biobased ethylene feedstock for Dow products.
The deal 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 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.