New Energy Blue, the clean-energy developer of lowest-carbon biofuel and biochemicals from crop residues, has formed New Energy Chemicals. 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. Then, it will expand operations at its Texas facility to produce sustainable aviation fuel (SAF).
“New Energy Chemicals opens multiple pathways to our exponential growth in biobased fuels and chemicals,” says Albury Fleitas, President of New Energy Blue. “We’re particularly excited by our new end-to-end alternative to Brazilian ethanol for making SAF, which will begin in the American Midwest by refining agricultural waste.”
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. 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.
Dow’s use of bio-based feedstocks from New Energy Blue is expected to be certified by ISCC Plus, an international sustainability certification program with a focus on traceability of raw materials within the supply chain. While Dow intends to mix agriculture-based ethylene into its existing manufacturing process, ISCC Plus’s chain of custody certification would allow Dow’s customers to account for bio-based materials in their supply chains.
Beyond meeting its growing commitments to Dow, New Energy Chemicals’ phase-two expansion can capitalize on both domestic and international demand for SAF since the Port Lavaca site has barge access to deep water shipping.
The HD ethanol-to-ethylene process employed by New Energy Chemicals is most likely compatible with conventional jet fuel methods of production, using a technology pathway similar to Brazilian ethanol-to-SAF conversion.
“Except there’s a significant gap in decarbonization scores,” says Kelly Davis, Vice President, “and that gives our future SAF a dramatic edge in getting the airlines closer to their net-zero goal for GHG emissions. It’s an extra advantage that comes from using American-sourced leftovers from the annual grain harvest.”
“Decarbonizing America is a big ask for a big task,” Corle says. “Those 140 million acres of U.S. grain provide enough stalks and straws and grasses to feed 500 refineries and produce 20 billion gallons of exceptionally low-carbon ethanol annually. That’s how you decarbonize SAF and Dow’s renewable plastic materials, how you make a dent in replacing oil refining with biomass refining.
“We’re already forging partnerships with governments, customers, and developers across Canada, Europe, Asia, and Africa. Inviting them to work collaboratively towards sustainable decarbonization with global impact.”
