Covestro signs recycled raw material deal with Encina

The German manufacturer of polymers, Covestro, announced on Wednesday that it has reached a deal with the US company Encina to supply chemically recycled raw materials.

Encina, a circular chemicals producer, is set to establish a world-scale production facility in Pennsylvania, supplying Covestro with benzene and toluene. The facility, set to open at the end of 2027, would be completed after Encina's process development unit in Texas is completed.

The feedstocks would be derived from end-of-life plastics that meet the ISCC PLUS (International Sustainability & Carbon Certification) standard.

Covestro would use the feedstocks to manufacture methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI). Benzene can also be used to synthesis phenol and acetone.

“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, the company’s chief technology officer.

In an effort to lower scope 3 emissions for its clients as well as the company, Covestro has inked its first significant raw material procurement contract for chemically recycled materials.

Source: Covestro AG