Dow signs four renewable power agreements to achieve 2025 Goal and lead petrochemical industry
- Solar and wind energy purchases expected to reduce more than 225,000 metric tons of CO2e
- Advances Dow’s position as leading user of renewable power in the chemical industry and among the top 25 global corporations for renewable energy use
MIDLAND, Michigan – Dow, Inc. (NYSE: DOW) announced today that it has signed four new renewable power purchase agreements which provide the company with access to 338 megawatts of installed solar and wind capacity. The renewable energy generated from these agreements will reduce more than 225,000 metric tons of CO2e, while producing approximately 800,000 megawatt hours per year of energy.
The renewable energy purchase agreements offset power usage from other sources and increase the use of renewables to power Dow’s operations. They include three solar energy agreements near Dow sites in Brazil, Kentucky and Texas and an agreement to provide Dow’s site in Bahia Blanca, Argentina with access to wind capacity.
"Renewable energy is an important immediate step as part of our ongoing efforts to reduce greenhouse gas emissions of our manufacturing operations, and one we’re able to implement in a cost-competitive way,” said Jack Broodo, president Dow Feedstocks and Energy business. “These agreements also support our customers’ ability reduce their value chain emissions, while supporting the continued development of renewable energy markets.”
The renewable energy purchases reflect Dow’s commitment to pursue renewable energy supply in support of its recently announced targets to reduce its net annual carbon emissions by 5 million tons by 2030 on its path toward achieving carbon neutrality in 2050. The Company is on track to exceed one of its 2025 Sustainability Goals, to obtain 750 megawatts (MW) of its power demand from renewable sources.
In 2019, Dow obtained approximately 13 percent of its total electricity consumption from renewable sources. With these new agreements, this amount is expected to increase as these projects are approved and come online over the next few years.
The new purchased power agreements supplement hydroelectric, wind energy, biomass and other renewable power agreements the Company already has in place around the world.
Each of the long-term renewable power agreements reduces Dow’s Scope 2 carbon emissions, can help Dow customers meet their value chain emissions reductions objectives, and support additionality, which enables new renewable power generation capability in the region. The PPAs will provide Dow and local consumers with increased access to renewable power and a stronger foundation for sustainable economic growth.
The agreements are with Central Puerto for Dow’s site in Bahia Blanca, Argentina; Kentucky Utilities for Dow’s Carrollton, Kentucky (USA) site; First Solar to supply Dow’s Texas power pool; and Atlas Renewable Energy in Brazil for Dow’s Aratu site.
Dow products made at these sites include:
- Silicone-based materials in Dow Consumer Solutions, manufactured at the business’ largest facility in Carrollton, Kentucky
- Ethylene and propylene derivatives in Dow’s Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure and Performance Materials & Coatings operating segments produced at Texas Operations, the largest manufacturing complex in the western hemisphere
- Polyurethane products manufactured at the Aratu site, Brazil
- Packaging & Specialty Plastics materials at the Bahia Blanca site, which already meets Argentina’s 2025 renewables requirement for large sites with the wind agreement that covers 20% of the site’s power needs
Dow continues to partner with suppliers to secure cost-effective renewable power for its operations while supporting additionality and producing products that enable a lower carbon future. The solar panels manufactured by First Solar for the Texas-based PPA will use Dow’s ENGAGE™ PV polyolefin elastomers (POEs), which offer the opportunity to increase power generation, reliability and service life for solar modules.
Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure and consumer care. Dow operates 109 manufacturing sites in 31 countries and employs approximately 36,500 people. Dow delivered sales of approximately $43 billion in 2019. 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.
For further information, please contact: