GERMANY – Covestro, a global leader in high-performance polymers, and Encina, a US-based producer of ISCC PLUS certified circular chemicals, have entered into a long-term supply agreement for chemically recycled, circular feedstock derived from post-consumer end-of-life plastic.
Specifically, Encina will supply Covestro with benzene and toluene, pending the completion of Encina’s world-scale production facility, anticipated to come online at the end of 2027.
This agreement marks the first major procurement deal for Covestro involving chemically recycled, circular-based raw materials, representing a significant step in the company’s journey towards full circularity. It also contributes to the reduction of scope 3 emissions for Covestro and its customers.
Thorsten Dreier, Chief Technology Officer at Covestro, highlighted the importance of sourcing raw materials from used plastics for manufacturing products, emphasizing its contribution to realizing the vision of a circular economy.
Such raw materials enable the reuse of used plastics and have a lower carbon footprint, leading to more sustainable end products.
Benzene and toluene are crucial raw materials in Covestro’s manufacturing processes, used for producing methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI), respectively.
MDI and TDI are critical raw materials for the production of rigid and flexible polyurethane foams, utilized in applications such as household appliances, building insulation, furniture, and car seats.
Encina employs a proven proprietary catalytic technology that produces circular feedstock with a lower carbon footprint compared to those based on fossil fuels, along with an exceptionally high yield.
David Roesser, Chief Executive Officer of Encina, expressed pride in working with Covestro, emphasizing the importance of the agreement in creating a truly circular economy and minimizing waste. He sees this as the beginning of a long-standing partnership between the two companies.
Covestro’s vision to become fully circular is based on four key drivers: the use of alternative raw materials, innovative recycling and renewable energy, as well as engaging in joint solutions.
The agreement with Encina represents a pioneering milestone in incorporating innovative recycling technologies, specifically chemical recycling of end-of-life plastic, into Covestro’s production.
New elastomer plant in China
Last year, the company began production in its new Shanghai plant for polyurethane elastomers systems following the groundbreaking in the summer of 2022.
The investment, in the double-digit million Euro range, is part of a series of investments in the elastomers raw materials taken by the business in the past years with sites in Thailand and Spain.
The new plant is planned to meet the demand for materials in the APAC region for renewable energy applications in offshore cable protection, silicon wafer-cutting rollers of photovoltaic panels, and more.
The polyurethane elastomer systems produced at the site can be used in offshore wind energy, protection of submarine cables, the manufacturing process of photovoltaic panels, and screening media in the mining industry.
The new plant is the latest addition to the Covestro Integrated Site Shanghai (CISS), Covestro’s single largest production site worldwide.
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