Covestro and Encina Reach Agreement for Circular Raw Materials

Circular Raw Materials Agreement. Thorsten Dreier, CTO of Covestro (right) and David Roesser, CEO of Encina, agree to a long-term supply of chemically recycled raw materials.
Thorsten Dreier, CTO of Covestro (right) and David Roesser, CEO of Encina, agree to a long-term supply of chemically recycled raw materials.

Encina, a U.S.-based producer of ISCC Plus-certified circular chemicals, has reached a long-term supply agreement with Covestro for chemically recycled, circular feedstock derived from post-consumer end-of-life plastic.

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. 

Building upon previous sustainable sourcing efforts, this marks the first major procurement agreement involving chemically recycled, circular-based raw materials for Covestro, a major step in the company’s journey toward full circularity. It also helps reduce scope 3 emissions for Covestro and its customers, according to a news release. 

“The ability to source raw materials from used plastics for the manufacture of our products makes a decisive contribution to realizing our vision of a circular economy,” said Thorsten Dreier, chief technology officer at Covestro. “This is because such raw materials not only enable the reuse of used plastics, but also have a lower carbon footprint, which leads to more sustainable end products.”

Benzene and toluene are important raw materials to produce methylene diphenyl diisocyanate and toluene diisocyanate. Covestro uses MDI and TDI to manufacture rigid and flexible polyurethane foams, which go in household appliances and building insulation as well as furniture and car seats.

Encina’s proprietary catalytic technology produces circular feedstock with a lower carbon footprint when compared to those based on fossil fuels as well as an exceptionally high yield, company officials said.

“Encina is proud to be working with Covestro, a company with a long track record of innovation and commitment to sustainability,” said David Roesser, CEO of Encina. “This agreement represents the beginning of what we hope to be a long-standing partnership between our companies as we work to create a truly circular economy and realize a future in which nothing is wasted.”

Covestro’s vision to become fully circular is based on four key drivers: using alternative raw materials, innovative recycling and renewable energy, as well as engaging in joint solutions. The agreement with Encina is a milestone for incorporating innovative recycling technologies — the chemical recycling of end-of-life plastic — into Covestro’s production.

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