New Energy Chemicals to Provide Bio-based Ethylene for Dow's Plastics

New Energy Chemicals, a recent addition to the corporate portfolio of New Energy Blue, a distinguished developer specializing in biofuels and biochemicals, has forged a strategic partnership with Dow, a global leader in material science, to furnish biobased ethylene for the production of environmentally friendly plastics. This collaboration marks a pivotal step towards advancing sustainable solutions within the plastics industry. The ethylene supply will originate from New Energy Chemicals' extensive range of biobased fuel and chemicals, meticulously crafted from agricultural residues, underscoring their commitment to environmental stewardship and resource optimization.

Set to commence operations in the latter part of 2025, New Energy Chemicals' state-of-the-art biomass refinery, situated in Mason City, Iowa, USA, is poised to undergo a transformative process. The facility will be geared towards converting locally sourced corn stalks into an estimated annual output ranging from 16 to 20 million gallons of highly decarbonized (HD) cellulosic ethanol, alongside approximately 120,000 tons of pristine HD lignin. This high-quality HD lignin presents a viable alternative to conventional fossil fuels across various sectors, notably contributing to the decarbonization initiatives within steel production processes and beyond.

A substantial portion of the produced HD ethanol is slated for transportation to Texas, where New Energy Chemicals will undertake the conversion process, transforming it into bio-based ethylene. This ethylene, derived from sustainable sources, will subsequently traverse a dedicated pipeline network, spanning the distance to Dow's operational hubs along the US Gulf Coast. Here, it will play a pivotal role in the synthesis of renewable plastics, fulfilling the burgeoning demand stemming from dynamic markets such as packaging.

In alignment with Dow's unwavering commitment to sustainability, stringent measures are in place to ensure that the utilization of bio-based feedstocks sourced from New Energy Blue adheres to the rigorous standards set forth by ISCC Plus (International Sustainability and Carbon Certification Plus). This globally recognized sustainability certification framework places paramount importance on fostering transparency and accountability throughout the entirety of the raw material supply chain.

By securing ISCC Plus chain of custody certification, Dow is poised to empower its clientele with the ability to meticulously track and evaluate the utilization of bio-based materials within their respective supply chains. Such certification serves as a testament to Dow's overarching strategy, which seeks to seamlessly integrate agriculture-based ethylene into its existing manufacturing processes, thereby catalyzing the widespread adoption of sustainable practices across its operational landscape.

An illustrative embodiment of Dow's steadfast dedication to championing sustainable packaging solutions is exemplified by the introduction of ionomer grades tailored specifically for perfume and cosmetic packaging applications, debuting in the latter stages of 2023. These pioneering initiatives underscore Dow's unwavering commitment to fostering innovation in the realm of environmentally conscious product development, catering to the ever-evolving needs of discerning consumers and industry stakeholders alike.