On May 16, 2024, Dow and Freepoint Eco-Systems Supply & Trading LLC ("Freepoint Eco-Systems") unveiled a pact for approximately 65,000 metric tons annually of certified-circular pyrolysis oil derived from plastic waste. This oil will be used to manufacture new, virgin-grade equivalent plastics at Dow's U.S. Gulf Coast facilities. Collaboratively, Dow and Freepoint Eco-Systems are constructing a recycling infrastructure that transforms plastic waste into valuable materials, advancing the circular economy for plastics in North America.

The pyrolysis oil will originate from a cutting-edge recycling plant owned and managed by Freepoint Eco-Systems Eloy Recycling LLC, an affiliate of Freepoint Eco-Systems. This new facility, slated for construction in Arizona, will achieve ISCC Plus Certification upon completion. Its primary function will involve processing end-of-life plastic waste within the region, thus diverting it away from landfills or incineration by transforming it into recycled pyrolysis oil. It is anticipated that approximately 70% of each ton of plastic waste will be converted into pyrolysis oil, which will be exclusively supplied to Dow during phase one of the facility's operations, commencing as early as 2026.

By leveraging the circular liquid supply, Dow will manufacture novel products using virgin-grade equivalent plastics, thereby substituting those crafted from traditional feedstock. These resultant circular products will find applicability across diverse sectors, encompassing food-grade packaging (such as pet food, confectionery, and snacks), as well as medical and pharmaceutical packaging. This transition will maintain existing product standards while reducing reliance on fossil-based feedstocks.

"This partnership with Dow marks a significant advancement in driving the circular economy forward within the region, while also contributing to the growth of a pivotal advanced recycling facility in the U.S.," stated Jeff McMahon, managing director at Freepoint Eco-Systems. "We are broadening our capabilities to offer additional circular economy solutions for plastic waste on a global scale."

"Our collaboration with Freepoint Eco-Systems signifies another significant stride in Dow's mission to secure circular sourcing and convert end-of-life plastic waste into products that assist our customers in achieving their recycled content objectives," remarked Victor Zapata, North America commercial vice president of Dow Packaging and Specialty Plastics. "The Dow team is enthusiastic about partnering with a forward-thinking ally like Freepoint Eco-Systems, which shares our dedication to constructing essential infrastructure for circular plastics."

"In this partnership, Dow is revolutionizing our approach to raw material sourcing for our products, simultaneously addressing the issue of plastic pollution," stated Issam Lazraq, Dow's global director of sustainable feedstocks, Feedstocks and Commodities. " By converting easily accessible local plastic waste, which was previously slated for disposal in landfills or incineration, into a source of pyrolysis oil for our U.S. Gulf Coast operations, we are creating a reliable portfolio of circular feedstock supply.”

As previously disclosed by Freepoint Eco-Systems, upon reaching full operational capacity, the new facility will be capable of recycling approximately 180,000 tons of plastic waste annually – a quantity equivalent to the weight of roughly 9,000 fully loaded semi-trailer trucks. Phase one, slated to commence in 2026, will initially handle 90,000 tons of waste, resulting in the production of 65,000 metric tons of pyrolysis oil exclusively destined for Dow. The facility will be situated in Eloy, Arizona, encompassing 40 acres of undeveloped land.

"The establishment of this state-of-the-art recycling facility by Freepoint Eco-Systems and its affiliates, bolstered by the partnership with Dow, reinforces Arizona's role as a frontrunner in the regional transition towards a circular economy. This initiative generates valuable green employment opportunities and propels sustained, environmentally conscious economic development for Eloy," commented Micah Powell, Mayor of Eloy.

Dow and Freepoint Eco-Systems are dedicated to promoting environmentally sustainable, economically viable, and inventive solutions that foster the development of a worldwide circular economy. This collaboration exemplifies Dow's collaborative approach with proficient partners to expand a materials ecosystem, striving to extract value from waste and establish a forward-thinking recycling infrastructure for plastics.