Dow has entered into a long-term supply agreement in North America with biomass refineries operator New Energy Blue, which is set to create bio-based ethylene from renewable agricultural residues. 

The chemicals corporation indicates that it expects to purchase this bio-based ethylene to reduce carbon emissions from plastic production and use it in recyclable applications across packaging, transportation and footwear.

“Dow is in close discussions with New Energy Blue on project progress and milestones and will consider this successful when we begin incorporating this renewable feedstock into our production,” Manav Lahoti, global sustainability director for Olefins, Aromatics & Alternative at Dow, tells PackagingInsights.

“The first of five planned New Energy Blue processing facilities will source leftover corn stover from farmers near the site. Dow will have supply rights for bio-ethylene from all five of New Energy Blue’s facilities.”

“We expect to see demand increase over the next few years.”

Renewable plastics
The agreement would ensure bio-based ethylene supply for Dow’s US Gulf Coast assets to produce renewable plastics across fast-growing end markets. 

It is reportedly the first agreement to generate plastic source materials from corn stover (stalks and leaves), and Dow’s first agreement in North America to utilize agriculture residues for plastic production.Dow expects demand for renewable plastic to grow over the coming years.

Karen S. Carter, president of Packaging & Specialty Products at Dow, says: “We are unlocking the value of agriculture residues in this new partnership. By committing to purchase 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.”

Innova Market Insights identified “Renewable rebellion” as a top packaging trend for 2023, noting that pollution and climate change fears and geopolitical uncertainties around the availability of oil and gas – exacerbated by the war in Ukraine – are driving a movement toward renewable packaging made from paper and bioplastics.

Under the terms of the agreement, Dow is supporting the design of New Energy Freedom – a new facility in Mason City, Iowa, US – that is expected to process 275 KT 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.

Scalability support
This agreement also gives Dow similar commercial supply options for the next four future New Energy Blue projects, supporting the biomass refinery operator’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 expectedly lead to a reduction in its sourcing of fossil fuels and subsequent GHG emissions. The agreement is Dow’s first in North America to convert agricultural residues into plastic.

“There will be no change in product performance once we begin using the renewable feedstock,” Lahoti tells us.

“By incorporating this bio-based feedstock into our product lines, we are not negatively affecting product recyclability. Since we will be using this in a wide variety of plastic products, we can safely say that if the product is currently recyclable in the North American recycling infrastructure, then it will continue to be recyclable after we begin using the renewable feedstock.”

Certification expected
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 the traceability of raw materials within the supply chain.

While Dow intends to mix agriculture-based ethylene into its existing manufacturing process, ISCC Plus’ chain of custody certification would allow the chemical leader’s customers to account for bio-based materials in their supply chains.

Favoring farmers
Moreover, the supply agreement is expected to 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 yearly.

Since US 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, according to Dow.

Thomas Corle, CEO of New Energy Blue, adds: “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.”