Dow Chemical plant to add biomass energy

Dow Chemical Co. said Wednesday that its largest manufacturing facility will start processing biomass fuel by the end of 2012.

The chemical company said the plant, called the Aratu Complex, will start burning Eucalyptus wood biomass to power its chemical processing facilities.

Dow signed a supply agreement with Brazilian firm Energias Renovaveis do Brasil to help install and operate the biomass generation plant. The plant is expected to reduce the site's carbon dioxide emissions by 180,000 metric tons annually.

Eucalyptus biomass is waste wood or pulp from trees that can be burned to make energy.

Shares of Dow rose $1.02, or 3 percent, to $32.20 during afternoon trading.