New Energy Chemicals to produce bio-based ethyne for Dow’s low carbon plastics

In Pennsylvania, New Energy Blue formed New Energy Chemicals. In phase one, the new biochemical subsidiary will produce American-sourced and American-made bio-based ethylene to enable Dow’s production of low carbon plastics used in everyday life; in phase two, it will expand operations at its Port Lavaca, Texas, facility to produce sustainable aviation fuel (SAF).

In late 2025, the New Energy Freedom biomass refinery in Mason City, Iowa, will begin converting local corn stalks into 16-20 million gallons a year of highly decarbonized (HD) cellulosic ethanol and 120,000 tons of clean HD lignin. Lignin has high value as a fossil substitute in markets like paving American roads and decarbonizing steel production.

Some of Freedom’s ethanol is destined for California and Oregon auto fuel markets; by meeting their strict low-carbon standards, it will reduce greenhouse gas emissions by over 100% per gallon of gasoline displaced. Millions of HD gallons will also head to Texas, where New Energy Chemicals will convert it into bio-based ethylene, transported via pipeline to Dow’s U.S. Gulf Coast operations for production of renewable plastics across fast-growing end markets.