U.S. chemical maker Dow has signed a long-term supply agreement with bioconversion company New Energy Blue for plastic materials made from corn residue, in its move to renewable energy sources for production.
Under the agreement, Dow will support design of New Energy’s Iowa ethanol facility which aims to process 275 kilotons of corn stalks and leaves per year. Nearly half of this will be turned into ethylene, a basic feedstock for products such as plastics.
Dow said it aims to reduce its fossil fuel sourcing for production and subsequent greenhouse gas emissions by using bio-plastic made from agricultural residues.
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The agreement also gives Dow similar commercial supply options for the next four future New Energy Blue projects.
