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Dow and UPM partner to produce plastics made with renewable feedstock

Press Release 24.9.2019 15:00 EEST

Dow (NYSE: DOW), in partnership with UPM Biofuels, a producer of advanced biofuels, announces the commercialization of a plastics offering for the packaging industry made from a bio-based renewable feedstock.

Dow is integrating wood-based UPM BioVerno renewable naphtha – a key raw material used to develop plastics – into its slate of raw materials, creating an alternative source for plastics production. Dow is using this feedstock to produce bio-based polyethylene (PE) at its production facility in Terneuzen, The Netherlands, for use in packaging applications such as food packaging to reduce food waste. Following a successful year-long trial program, Dow is now planning to scale production and address the increasing global demand for renewable plastics.

“The partnership between UPM and Dow illustrates our ambition to ensure the products we sell support the shift from a traditional linear economy towards a circular economy,” said Carsten Larsen, Dow’s recycling commercial director for Europe. “At the end of their useful life, products and materials are recovered as efficiently as possible so they can be used again. We are focusing on the sustainability properties of every polymer we bring to market by working with partners like UPM to source alternative feedstocks to minimize the amount of fossil resources required for production.”

UPM BioVerno naphtha is produced at UPM’s biorefinery in Lappeenranta, Finland, from crude tall oil, which is a residue of paper pulp production. Unlike many other alternative renewable feedstocks, no extra land is required for the feedstock production. The feedstock originates from sustainably managed forests.

This process also significantly reduces CO2 emissions, especially by carbon sequestration, compared to standard fossil derived PE resins[1], and the plastics produced can help brand owners meet their sustainability packaging goals. The entire supply chain is International Sustainability & Carbon Certification (ISCC) certified, based on mass balance approach, meaning all steps meet traceability criteria and reduce negative environmental impacts.[2]

Packaging made from this renewable feedstock can be fully recyclable as demonstrated through a collaboration with brand owner Elopak, an international supplier of paperboard-based packaging for food and beverage. Dow’s bio-based low-density polyethylene (LDPE) resins are used to coat Elopak’s liquid carton containers and in the production of carton caps, resulting in a 100 percent renewable beverage carton. This was achieved without compromising the benefits of the original form of plastic-coated packaging in addition to reducing the CO2 footprint of the packaging during production and use.

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UPM BioVerno naphtha is produced from crude tall oil, a residue of pulp making process, and is used by Dow to produce bio-based polyethylene. UPM BioVerno replaces fossil raw materials in plastic production and helps the customers to reduce their carbon footprint.

“It’s exciting to work with Dow and Elopak in the production of a truly sustainable consumer product,” stated Panu Routasalo, vice president for UPM Biofuels. “We are pleased to help meet value chain demand for increased sustainability in packaging by providing a high-quality renewable naphtha for the market.”

This agreement with UPM is the latest example of Dow’s strategy to enable a shift to a circular economy for plastics by focusing on resource efficiency and integrating recycled content and renewable feedstocks into its production processes. Dow also recently partnered with the Fuenix Ecogy Group, based in Weert, The Netherlands, for the supply of pyrolysis oil feedstock, which is made from recycled plastic waste.

Through these efforts, post-consumer plastics will continue to have value through an extended lifespan. These agreements also contribute to Dow’s commitment to incorporate at least 100,000 tonnes of recycled plastics in its product offerings sold in the European Union by 2025.

Dow is showcasing the “tall oil” project with UPM at K 2019, the world’s largest plastics and rubber trade fair from 16-23 October in Dusseldorf, Germany.

[1] (up to 57% based on C2G analysis for bio-LDPE completed with UPM, Elopak and Anthesis)
[2] https://www.iscc-system.org/certificates/all-certificates/

About Dow
Dow (NYSE: DOW) combines one of the broadest technology sets in the industry with asset integration, focused innovation and global scale to achieve profitable growth and become the most innovative, customer centric, inclusive and sustainable materials science company. Dow’s portfolio of performance materials, industrial intermediates and plastics businesses delivers a broad range of differentiated science-based products and solutions for our customers in high-growth segments, such as packaging, infrastructure and consumer care. Dow operates 113 manufacturing sites in 31 countries and employs approximately 37,000 people. Dow delivered pro forma sales of approximately $50 billion in 2018. References to Dow or the Company mean Dow Inc. and its subsidiaries.
For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

About UPM Biofuels
UPM Biofuels produces renewable and sustainable products for the transport and petrochemicals industries. We offer our customers ways to replace fossil raw materials and reduce their carbon footprint. UPM's innovative, bio-based products are frontrunners in quality, usability and sustainability. In addition to renewable diesel, the UPM Lappeenranta Biorefinery produces renewable naphtha - an excellent raw material for plastics, film materials or glues. www.upmbiofuels.com

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For further information, please contact:
Judith Hicks (Dow)                                  
+41 44 728 2319                                      
jchicks@dow.com

Anneli Kunnas (UPM)
+358 40 520 7605
anneli.kunnas@upm.com

UPM, Media Relations
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