Dow Inc. and New Energy Blue have announced a long-term supply agreement to produce bio-based ethylene from renewable ag residues, specifically corn stover, which comprises stalks and leaves. The financial specifics of the deal were not disclosed.
This agreement is a first in North America, as it enables the production of plastic source materials from corn stover. It also marks Dow’s inaugural agreement in the region to use ag residues for plastic production.
Under the agreement, Dow will aid the design of New Energy Freedom, a new Iowa facility that aims to process 275 kt/year of corn stover. This facility is expected to yield commercial quantities of second-generation ethanol and clean lignin. Almost half of the produced ethanol is planned to be converted into bio-based ethylene feedstock for Dow’s products.
The agreement includes potential commercial supply options for the next four New Energy Blue projects, aiming to expand production and support farmers by providing a stable market for ag residues. The five projects combined are projected to reduce over 1M tons/year of greenhouse gas emissions.
