Performance polymer company Covestro has entered into a long-term supply agreement with Encina, a USA-based producer of ISCC Plus-certified circular chemicals. The deal involves the provision of chemically recycled, circular feedstock derived from post-consumer end-of-life plastic.
Covestro will be supplied with benzene and toluene by Encina, contingent upon the completion of Encina’s world-scale production facility, expected to be operational by the end of 2027.
This agreement marks Covestro’s first major procurement deal involving chemically recycled, circular-based raw materials.
Thorsten Dreier, CTO at Covestro, highlighted the importance of sourcing raw materials from used plastics, emphasizing the positive impact on realizing a circular economy. Chemically recycled raw materials not only enable the reuse of plastics but also contribute to lower carbon footprints, resulting in more sustainable end products.
Benzene and toluene, the materials Covestro will receive from Encina, are crucial components in Covestro’s manufacturing processes. They are used for producing methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI), essential for manufacturing rigid and flexible polyurethane foams. These foams find applications in various sectors, including automotive components.
David Roesser, CEO of Encina, said, “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.”