Dow to produce plastic from corn-derived ethanol in a new partnership; Benzene market seen expanding at 3% annually until 2028
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Dow to develop renewable plastic materials from corn in partnership
Dow announced on May 25, 2023 a “first of its kind agreement” in North America in which a partner company named New Energy Blue “will create bio-based ethylene from renewable agricultural residues” in association with the Midland, Michigan-based company.
“Dow expects to purchase this bio-based ethylene, reducing carbon emissions from plastic production, and using it in recyclable applications across transportation, footwear, and packaging,” Dow said.
This “is the first agreement in North America to generate plastic source materials from corn stover (stalks and leaves). This is also Dow's first agreement in North America to utilize agriculture residues for plastic production,” according to the Dow press release.
"We are unlocking the value of agriculture residues in this new partnership with New Energy Blue," said Karen Carter, Dow President of Packaging & Specialty 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," she said.
"Together, we're building a future not only in the farm fields of Iowa using corn stover, but across America and around the world using a variety of biomass from grain straws to tall perennial grasses, wherever there's an opportunity to reduce carbon emissions from farming (…)," said Thomas Corle, CEO of New Energy Blue.
Dow is supporting the design of a new facility in Iowa with about 275,000 tons of corn stover per year of processing capacity and produce commercial quantities of second-generation ethanol and clean lignin. According to Oxford Languages, lignin is an organic polymer deposited in the cell walls of many plants, "making them rigid and woody."
Nearly half of the ethanol will be turned into bio-based ethylene feedstock for Dow products, according to the release.
This agreement would play a role in Dow's approach to building material ecosystems that “value, source, and transform waste into circular products,” according to the statement.
South American Braskem has long had vegetable-based plastic production
Braskem, the biggest petrochemical company based in Latin America and also the biggest polypropylene producer in North America, uses ethanol (obtained from sugar cane) for the manufacture of vegetable-based plastics.
In Sao Paulo, Brazil, where plastic straws became prohibited in 2019, all hydrocarbon-based bags were banned in 2015. Many Sao Paulo retailers have since switched to plant-based bags. Much of Braskem production capacity is in the greater Sao Paulo area.
Braskem had in operation in 2020 a 200,000-tonnes annual capacity “green” polyethylene plant, that polymerized sugar cane-based ethylene, according to a report at the time.
Petrochemical companies worldwide have long sought to become more friendly to the environment amid increased public concern about pollution in ocean and rivers with plastics. Public concern has even led to the creation of indices and funds that help investors avoid exposure to plastic.
Benzene market seen expanding at 3% annually until 2028
The global benzene market may expand about 3% per year during the 2023-2028 period, according to a press release by ResearchAndMarkets.
“Increasing demand for styrene polymers from various end-user industries, such as textile, packaging, and building and construction, is expected to drive the market's growth,” according to the May press release.
Yet, “detrimental effects of benzene exposure may hinder the market's growth,” it added.
Ethylbenzene, derived from benzene, is mainly used to make styrene, that helps produce goods like polystyrene, acrylonitrile-butadiene-styrene (ABS), styrene-acrylonitrile (SAN) resins, styrene-butadiene elastomers, latexes, and unsaturated polyester resins.
Styrene polymers “are used in many things, like TVs, IT equipment, one-time use medical products (like test kits), consumer electronics, portable speakers, and the housing for cassette tapes,” the research company said.
The U.S. exported in a recent year 97,730 tonnes of styrene polymers (expansible polystyrene) in primary forms worth nearly $200 million, according to the report.
According to the World Bank, “in 2021, the top exporter of styrene polymers was the Netherlands with $ 620 million. Dow, based in the U.S., has operations in the Netherlands (Terneuzen) in addition to production assets in many other countries worldwide.
Besides helping produce styrene, ethylbenzene is also used as a solvent in fuels and as an intermediate in other applications. These uses "are likely to keep the demand for ethylbenzene high and help it grow, which will boost the benzene market in the coming years," according to the report.
Asia-Pacific currently leads worldwide benzene consumption, accounting for roughly half of the total. The region is also expected to be the fastest-growing of all surveyed.
Benzene is also widely used as raw material to produce construction goods like adhesives, paints, flooring, and fiberglass.
BASF, Braskem, Eastman Chemical, Exxon Mobil, INEOS, LyondellBasell, Marathon, Shell are some of the companies that produce and market benzene, the report said.
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