Earlier today, the American Midwest’s Dow Chemical Company announced its new joint venture with Mitsui Chemicals of Tokyo. They plan to produce ethanol—and eventually biopolymers (a.k.a. bio-based plastics) —using sugar cane as a feedstock.
This will put them in competition against Brazil’s Braskem, the current leader in biopolymer & sugarcane ethanol research and production.
This kind of increasing competition in the green plastics field is a good sign for investors looking to see future growth. Competition will push innovation in research & development as biopolymers become more widely used.
It’s no small undertaking for Dow/Mitsui, though– the process will cost more than $2 billion!
Together, the two companies aim to: