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Material sciences company Dow has entered into a feedstock agreement with Freepoint Eco-Systems to procure around 65,000 tonnes (t) a year of circular feedstock.
The certified-circular, plastic waste-derived pyrolysis oil will be sourced from a new chemical recycling facility in Eloy, Arizona, US, which will be owned and operated by Freepoint Eco-Systems Eloy Recycling, an affiliate of Freepoint Eco-Systems.
To be built on 40 acres of undeveloped land, the plant is designed to process approximately 180,000t of end-of-life plastic waste annually.
Once operational, the facility is expected to convert approximately 70% of each tonne of plastic waste into pyrolysis oil.
The first phase, scheduled to begin in 2026, will process 90,000t of waste, resulting in 65,000t of pyrolysis oil for exclusive sale to Dow.
The plant is also anticipated to achieve International Sustainability and Carbon Certification-Plus certification upon completion.
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By GlobalDataDow plans to utilise the circular liquid supply to manufacture new products with the same quality as virgin-grade plastics, substituting conventional feedstock.
These circular products can be used for a range of applications, including food-grade packaging for items such as pet food and snacks, as well as medical and pharmaceutical packaging, noted Dow.
Dow Packaging and Specialty Plastics North America commercial vice-president Victor Zapata said: “Our agreement with Freepoint Eco-Systems marks another important step in Dow’s pursuit to source circular supply and transform end-of-life plastic waste into products that help our customers meet their recycled content goals.
“The Dow team is energised to work with an innovative partner like Freepoint Eco-Systems that shares our commitment to building a much-needed infrastructure for circular plastics.”
In a related development, Dow and SCG Chemicals have signed a memorandum of understanding to create a circularity partnership in the Asia-Pacific region.
This partnership aims to transform 200 kilotonnes per annum of plastic waste into circular products by 2030.
The initial phases will focus on enhancing the value growth partnership for post-consumer recycled materials with existing suppliers and developing technological solutions in waste sorting and recycling in Thailand.
In March this year, Dow entered into a joint development agreement with Procter & Gamble Company to develop new proprietary recycling technology for hard-to-recycle plastic waste.