Dow Announces Bio-Based NORDEL(TM) REN EPDM

Rhea-AI Summary

Dow (NYSE:DOW) has launched NORDEL™ REN EPDM, a bio-based version of its EPDM rubber material used in automotive, infrastructure, and consumer applications. This new product aims to support industries in lowering their Scope 3 emissions and achieving sustainability goals. Key features include:

- Made from bio residues from other industries, avoiding competition with food resources
- Produced through an ISCC PLUS certified mass balance system
- Offers identical performance to virgin material without requalification
- Part of Dow's commitment to deliver 3 million metric tons of circular and renewable solutions by 2030

The production process uses 24% less energy and has a 39% lower carbon footprint compared to conventional methods, as validated by a third-party life cycle analysis.

Positive

• Launch of bio-based NORDEL™ REN EPDM to support customers' decarbonization efforts
• Product offers identical performance to virgin material, requiring no requalification
• Production process uses 24% less energy and has 39% lower carbon footprint than conventional methods
• Contributes to Dow's goal of delivering 3 million metric tons of circular and renewable solutions by 2030

Negative

• None.

Insights

Market Research Analyst

Dow's launch of NORDEL™ REN EPDM represents a significant step forward for the company and its clients in terms of sustainability. For investors, this launch indicates Dow's proactive approach to environmentally friendly innovations, which can be a strong market differentiator. The emphasis on bio-based materials and the ISCC PLUS certification suggests Dow is not just following industry trends but setting them.

From a market perspective, this product can help Dow capture a greater share in the growing market for sustainable materials. Industries such as automotive and construction are under increasing pressure to reduce their carbon footprints, making NORDEL™ REN EPDM an attractive option. This could also lead to new long-term contracts and a stable revenue stream for Dow.

In the short term, the launch may not significantly boost revenues but positions Dow favorably for future growth as industries continue to pivot towards sustainability. This strategic alignment with global decarbonization goals could also enhance Dow's brand reputation and stakeholder trust, potentially leading to a positive impact on stock prices over time.

Sustainability Expert

The introduction of NORDEL™ REN EPDM highlights Dow's commitment to sustainability and carbon neutrality. By using bio residues and an ISCC PLUS certified mass balance system, Dow ensures that the product helps reduce Scope 3 emissions without compromising performance. This approach aligns with global sustainability trends, making Dow a leader in the move towards greener materials.

For investors, this is more than just a new product; it is a validation of Dow's long-term sustainability strategy. The efficient production process of NORDEL™ EPDM, which already boasts a lower carbon footprint, further underscores Dow's innovative capabilities. Such innovations are critical as regulatory pressures on carbon emissions intensify worldwide.

In the long term, NORDEL™ REN EPDM could drive down costs associated with carbon taxes and compliance, offering a competitive edge. It exemplifies how Dow is positioning itself as a forward-thinking, environmentally responsible company, which could enhance its attractiveness to eco-conscious investors and funds.

Financial Analyst

Dow's announcement regarding NORDEL™ REN EPDM is impactful from a financial analysis standpoint. The product is likely to support Dow's goal of delivering 3 million metric tons per year of circular and renewable solutions by 2030, indicating a strong future revenue stream from sustainable products. This aligns well with Dow's broader 'Path to Zero' strategy, potentially lowering long-term operational risks and costs associated with carbon emissions.

Financially, launching a bio-based EPDM that does not require requalification means Dow can quickly supply the market without incurring additional costs for new production lines or customer requalification. This efficiency could result in higher margins for the new product line.

Investors should keep an eye on how quickly and effectively Dow can scale the production of NORDEL™ REN EPDM and capture market share. While immediate financial impacts might be modest, the strategic move positions Dow well for increased market share and profitability as sustainability becomes a key purchase driver across industries.

Recent addition to Dow's growing portfolio of sustainable materials aims to help automotive, infrastructure and consumer industries lower their Scope 3 emissions

WIESBADEN, GERMANY / ACCESSWIRE / July 23, 2024 / Dow (NYSE:DOW) recently announced the launch of NORDEL™ REN Ethylene Propylene Diene Terpolymers (EPDM), a bio-based version of Dow's EPDM rubber material that goes into automotive, infrastructure and consumer applications.

A key component of automotive weatherseals and hoses, Dow aims to support not just the automotive industry in achieving its sustainability goals with the launch of NORDEL™ REN EPDM, but as EPDM also goes into building profiles, roofing membranes, wire and cable, among others, NORDEL™ REN EPDM can help the decarbonization of building and construction and more.

"At Dow, we recognize the necessity to support our customers in their decarbonization journeys, as we drive towards our own carbon neutrality," said Zshelyz Lee, Global Automotive Plastics Circularity Team Leader. "With our commitment to deliver 3 million metric tons per year of circular and renewable solutions by 2030, we are proud to bring NORDEL™ REN EPDM as the newest offering to help our customers achieve their ambitious sustainability goals and create a better tomorrow."

By using bio residues from other industries as raw material, NORDEL™ REN EPDM can further support Dow customers in the rubber industry to offer their own customers a lower-carbon product. As only waste residues or by-products from an alternative production process are utilized, these raw feedstock materials will not consume extra land resources nor compete with the food chain.

The plant-based EPDM will be made through an ISCC PLUS certified mass balance system which traces the flow of bio-based raw material through a complex value chain and attributes it through verifiable bookkeeping. Crucially, the resulting product offers identical performance to virgin material with no requalification required, helping customers accelerate their transition to more sustainable options without the need for additional time or carbon emissions from the construction and maintenance of a new parallel production stream.

Dow's Path to Zero

The arrival of NORDEL™ REN EPDM is part of Dow's continuous endeavors towards carbon neutrality. The technology behind NORDEL™ EPDM production, Dow's Advanced Molecular Catalyst, already results in a highly efficient process that uses 24% less energy than the conventional Ziegler-Natta process, and thus 39% lower carbon footprint for the standard NORDEL™ EPDM grades, which has been validated by a third-party life cycle analysis (LCA).

Aside from extending its range of innovative low-carbon options to help customers reduce their Scope 3 emissions, the company is also accelerating investments in renewables and transformative next-generation technologies to reduce its own Scope 1, 2, and 3 emissions, achieve net zero and protect the planet.

About Dow
Dow (NYSE:DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 31 countries and employ approximately 35,900 people. Dow delivered sales of approximately $45 billion in 2023. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.

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For further information, please contact:

Patrick Kennedy (Porter Novelli)
+32.49.97.303.96
patrick.kennedy@porternovelli.be

View additional multimedia and more ESG storytelling from DOW on 3blmedia.com.

Contact Info:
Spokesperson: DOW
Website: https://www.3blmedia.com/profiles/dow
Email: info@3blmedia.com

SOURCE: DOW

View the original press release on accesswire.com

FAQ

What is Dow's new NORDEL™ REN EPDM product and how does it contribute to sustainability?

NORDEL™ REN EPDM is a bio-based rubber material launched by Dow (NYSE:DOW) for automotive, infrastructure, and consumer applications. It helps lower Scope 3 emissions by using bio residues as raw materials, offering identical performance to virgin material without requalification, and is produced through an ISCC PLUS certified mass balance system.

How does the production of NORDEL™ REN EPDM compare to conventional methods in terms of energy efficiency?

The production of NORDEL™ REN EPDM uses Dow's Advanced Molecular Catalyst technology, which results in 24% less energy consumption and a 39% lower carbon footprint compared to the conventional Ziegler-Natta process. This has been validated by a third-party life cycle analysis.

What is Dow's (NYSE:DOW) commitment to circular and renewable solutions by 2030?

Dow (NYSE:DOW) has committed to delivering 3 million metric tons per year of circular and renewable solutions by 2030. The launch of NORDEL™ REN EPDM is part of this commitment, supporting customers in achieving their sustainability goals and creating a more sustainable future.