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.

Source: Dow

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 agricultural residues for plastic production.

"We are unlocking the value of agriculture residues in this new partnership with New Energy Blue. 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."

Karen S. Carter, Dow President of Packaging & Specialty Products

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.

"We're excited to be working with Dow to find solutions that create bio-based plastics from renewable resources. 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." 

Thomas Corle, CEO of New Energy Blue

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.

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.