Dow announces agreement with Freepoint and MOU for Asia Pacific market with SCGC

Midland, Michigan-based Dow has announced two partnerships designed to advance its circularity goals.

In the U.S., the company has agreed to consume an estimated 65,000 metric tons of pyrolysis oil from the recycling facility Freepoint Eco-Systems Supply & Trading LLC, Stamford, Connecticut, is building in Eloy, Arizona, on 40 acres of previously undeveloped land. Dow will produce virgin-grade equivalent plastics at its Gulf Coast operation using the oil.

In the Asia Pacific (APAC) region, Dow and Bangkok-based SCG Chemicals Public Co. Ltd., or SCGC, have signed a memorandum of understanding (MOU) to partner to transform 200,000 tons of end-of-life plastics into circular products by 2030 by accelerating technology development to enable mechanical recycling and advanced recycling and convert a broader range of plastic into high-value applications.

Freepoint partnership

Dow says it will be the sole off-taker from phase one of Freepoint’s Arizona facility and will transform the certified-circular liquid supply into virgin-grade equivalent plastics and develop new products to meet customer demand for recycled content through a mass balance approach.

The pyrolysis oil will be produced at the advanced recycling facility in Eloy that is owned and operated by Freepoint Eco-Systems Eloy Recycling LLC, a Freepoint Eco-Systems affiliate. The facility will have 180,000 tons of nameplate recycling capacity, equivalent to the weight of approximately 9,000 fully loaded semitrailer trucks. For every ton of plastic the facility processes, approximately 70 percent is expected to be converted into pyrolysis oil. Phase one, expected to start up in 2026, will process 90,000 tons of plastic, yielding 65,000 metric tons of pyrolysis oil to be sold exclusively to Dow. Once completed, the advanced recycling facility will be ISCC Plus-Certified.

Dow’s resulting circular products will be suitable for use in various applications, including food-grade packaging (such as pet food, confectionery and snacks) and medical and pharmaceutical packaging, while maintaining existing product performance and reducing reliance on fossil feedstocks. 

"This agreement with Dow represents a substantial step toward accelerating the circular economy in the region and helps to scale what will be an important advanced recycling facility in the U.S.," says Jeff McMahon, managing director at Freepoint Eco-Systems. "We are expanding capabilities for more circular economy solutions for plastic waste globally." 

"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," adds Victor Zapata, North America commercial vice president of Dow Packaging and Specialty Plastics. "The Dow team is energized to work with an innovative partner like Freepoint Eco-Systems that shares our commitment to building a much-needed infrastructure for circular plastics." 

"Through this collaboration, Dow is redefining how we source raw materials for our products while tackling the challenge of plastic pollution," says Issam Lazraq, Dow global sustainable feedstocks director, Feedstocks and Commodities. "By converting locally available plastic waste that was destined for landfills or incineration into pyrolysis oil supply for our U.S. Gulf Coast operations, we are building a reliable circular feedstock supply portfolio." 

"The development of this advanced recycling facility by Freepoint Eco-Systems and its affiliates, supported by the agreement with Dow, furthers Arizona's position as a leader in the circular economy evolution for the region, creating quality green jobs and fueling continued sustainable economic growth for Eloy," Mayor Micah Powell says. 

SCGC partnership

The initial phases of the Dow-SCGC partnership are expected to include establishing a value growth partnership for postconsumer recycled materials with current suppliers and developing technology solutions for sorting recyclables, mechanical recycling and advanced recycling in Thailand to build a robust materials ecosystem in Southeast Asia that enables better plastic collection, recycling and management, accelerating plastic circularity.

The parties say they anticipate subsequent phases of the partnership to include sourcing plastic feedstocks in Southeast Asia, including potential expansion into other parts of the region such as in China, Korea, Japan, Taiwan, Australia and New Zealand.

Bambang Candra, APAC commercial vice president, Packaging & Specialty Plastics, Dow, says, "Asia has one of the largest sources of convertible plastic waste. We want to disrupt how the region currently handles waste and structure a new model that values, sources, and transforms plastic waste. Our partnership with SCGC will enable both companies to be key players in enabling greater circularity in the region by leveraging our complementary portfolio, research and development capabilities and technology licensing. Combined with our existing technical expertise in producing high-performance resins, our customers will also find value in the optimization of total cost in use, availability and quality of plastic waste across the materials ecosystem."

Sakchai Patiparnpreechavud, chief executive officer and president of SCGC, adds, "SCGC is ready to leverage its expertise in green polymer and compound technology to enhance the performance of plastic resins. This initiative aims to restore the value to used plastics according to circular economy principles through mechanical recycling and advanced recycling processes while maintaining properties that satisfy customers' needs. This will enhance business potential and support the growing demand for high-quality PCR in the global market, from packaging to electrical appliances, reflecting SCGC's ‘Low Waste, Low Carbon approach concretely."

"Our 37 years of shared commitment to excellence and sustainability make SCGC the ideal partner to explore the new joint business opportunities, and, together, we aim to further enhance the value we deliver to our customers and contribute to a sustainable future for the region," Chatchai Luanpolcharoenchai, Dow Thailand president, says.

The partnership addresses SCGC's sustainability goals under its "Low Waste, Low Carbon" initiative, striving for carbon neutrality by 2050. SCGC is also reducing greenhouse gas emissions by 20 percent and expanding its production capacity for its green polymer portfolio with a sales target of 1 million tons per year by 2030.

Dow says the Freepoint and SCGC partnerships support its "Transform the Waste" target which aims to transform end-of-life plastics and other forms of alternative feedstock to commercialize 3 million metric tons of circular and renewable solutions annually by 2030.