Covestro Enters Agreement with US Company Encina for Supply of Recycled Raw Materials

Covestro, a worldwide frontrunner in the production of high-performance polymers, has forged a substantial long-term supply deal with Encina, an American company recognized for manufacturing ISCC PLUS certified circular chemicals. The agreement revolves around the procurement of chemically recycled, circular feedstock derived from post-consumer end-of-life plastic. Specifically, Encina is set to supply Covestro with benzene and toluene, pending the completion of Encina's world-scale production facility, expected to be operational by the end of 2027.

This collaboration signifies a pivotal move for Covestro as it marks the first major procurement agreement involving chemically recycled, circular-based raw materials for the company. It underscores Covestro's commitment to advancing sustainability and moving towards a fully circular model. The agreement also contributes to the reduction of scope 3 emissions for Covestro and its customers, aligning with global efforts to address environmental concerns.

Thorsten Dreier, Chief Technology Officer at Covestro, emphasized the significance of sourcing raw materials from used plastics in realizing the company's vision of a circular economy. He highlighted that these recycled raw materials not only enable the reuse of used plastics but also boast a lower carbon footprint, leading to more sustainable end products.

Benzene and toluene, the key raw materials supplied by Encina, play crucial roles in Covestro's manufacturing processes. They are integral to the production of methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI). These compounds are essential for manufacturing rigid and flexible polyurethane foams, widely utilized in various applications such as household appliances, building insulation, furniture, and car seats.

Furthermore, benzene can be utilized in the synthesis of phenol and acetone, serving as raw materials for producing polycarbonate plastics like Makrolon®. These plastics find applications in high-quality products for industries such as automotive, electronics, and information technology.

Encina employs a proven proprietary catalytic technology that yields circular feedstock with a lower carbon footprint compared to those derived from fossil fuels. This innovative approach aligns with Covestro's commitment to sustainable practices, making it a fitting partner for this venture.

David Roesser, Chief Executive Officer of Encina, expressed pride in collaborating with Covestro, highlighting the latter's long track record of innovation and dedication to sustainability. He sees this agreement as the beginning of a potentially enduring partnership, as both companies strive to create a truly circular economy where nothing goes to waste.

Covestro's vision for full circularity is built on four key drivers: the use of alternative raw materials, innovative recycling, renewable energy, and engagement in joint solutions. The agreement with Encina serves as a pioneering milestone, incorporating innovative recycling technologies, particularly chemical recycling of end-of-life plastic, into Covestro's production processes. This move reflects the company's commitment to embracing sustainable practices and contributing to a more circular and environmentally friendly future.