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.
This is for plastic materials made from corn residue, in a bid to move towards renewable energy sources for production.
"We are unlocking the value of agriculture residues in this new partnership with New Energy Blue," said Karen Carter, Dow president of packaging & speciality products.
"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."
As part of the agreement, Dow will support the designing of New Energy's upcoming facility in Iowa that is expected to process 275 kilotons of corn stalks and leaves per year to produce ethanol.
Nearly half of this ethanol will be turned into bio-based ethylene feedstock for Dow products.
Ethylene, which is generally made from naphtha, is a basic feedstock for petrochemicals that are processed into products such as plastics.
Dow aims to reduce its fossil fuel sourcing for production and subsequent greenhouse gas emissions by using bio-plastic made from agricultural residues, the company said.
The agreement also gives Dow similar commercial supply options for the next four future New Energy Blue projects.
In April, Dow announced a partnership with industrial gas maker Linde Plc (LIN.DE) for clean hydrogen and nitrogen supply for a proposed net-zero carbon emissions ethylene and derivatives complex in Canada.
Chemical maker Dow signs feedstock agreement
