Covestro and Encina Reach Recycling Material Supply Agreement

Covestro has reached a long-term supply agreement with Encina, a US-based producer of ISCC PLUS certified circular chemicals, for chemical recycling feedstock derived from post-consumer end-of-life plastics. Specifically, Encina will supply benzene and toluene to Covestro upon completion of Encina's world-class production unit, which is expected to be put into operation by the end of 2027.

Building on previous sustainable sourcing efforts, this marks Covestro's first major purchasing agreement involving chemically recycled feedstock, an important step in the company’s move towards full circularity. It also helps reduce Scope 3 emissions for Covestro and its customers.

Thorsten Dreier, Chief Technology Officer at Covestro, said: "Obtaining raw materials from waste plastics to manufacture our products makes a decisive contribution to realizing our vision of a circular economy. This is because such raw materials not only reuse waste plastics , and has a lower carbon footprint, resulting in a more sustainable end product."

Benzene and toluene are important raw materials in Covestro's manufacturing process and are used to produce methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI) respectively. MDI and TDI are key raw materials used to produce rigid and flexible polyurethane foams, which are used in applications such as household appliances and building insulation, as well as furniture and car seating.

Benzene is also used in the synthesis of phenol and acetone, which are raw materials for making polycarbonate plastics such as Makrolon®, which are used in high-quality applications in the automotive, electronics, IT and other industries.

Encina's proven, proprietary catalytic technology produces recycled feedstocks with a lower carbon footprint and extremely high yields compared to fossil-based feedstocks.

David Roesser, CEO of Encina, said: "Encina is proud to partner with Covestro, which has a long track record of innovation and sustainability. This agreement marks the beginning of what we hope will be a long-term partnership between the two companies as we work to create a truly circular economy and enable a future without waste."

Covestro's vision to become fully circular is based on four key drivers: the use of alternative raw materials, innovative recycling technologies, renewable energy and participation in joint solutions. The agreement with Encina represents a groundbreaking milestone in the integration of innovative recycling technologies, in this case the chemical recycling of end-of-life plastics, into Covestro's production.