With the acquisition, Covestro expands its production footprint for HDI derivatives and reaffirms its commitment in two important regions, while strengthening its ability to serve customers in the coatings and adhesives industry with greater flexibility and reliability.

HDI derivatives are essential building blocks for high-performance polyurethane coatings, adhesives and sealants. They are used in a broad range of applications, including automotive coatings, protective coatings for infrastructure, marine coatings, wood furniture, electronics and other demanding industrial applications.

“By adding these sites in Thailand and the US, we are strengthening our regional production capabilities and improving our ability to supply customers from locations close to them,” said Thomas Roemer, Head of the Business Entity Coatings and Adhesives at Covestro. “Reliable supply, regional availability and technical expertise are critical for our customers, especially in a challenging market environment. This acquisition helps us deliver even better on those needs.”

The two sites complement Covestro’s existing production network for HDI derivatives in major regions including Europe, Asia and North America. The additional capacities will further enhance Covestro’s ability to respond to customer demand and support long-term growth in high-performance and more sustainable coatings and adhesives applications.

“Strong customer relationships are built on trust, reliability and the ability to deliver value over time,” said Monique Buch, Chief Commercial Officer of Covestro. “This acquisition strengthens our position in a business where customers count on us for consistent quality, regional supply and application expertise.”

The acquisition follows Covestro’s earlier acquisition of the Resins & Functional Materials business from DSM and continued investments in organic growth, underlining the company’s commitment to the coatings and adhesives industry.

ISCC PLUS-certified chlorine from Covestro is produced by using electricity from renewable sources, supporting a more sustainable production process and contributing to lower greenhouse gas emissions.

As of January 2026, the entire CR production of ARLANXEO is based on ISCC PLUS-certified chlorine, marking an important milestone in the company’s sustainability journey and its commitment to a more sustainable value chain. 
This transition is resulting in an average reduction in global warming potential (GWP) of approximately 20% compared to 2025 levels¹, depending on the specific product grade.

“Integrating ISCC PLUS-certified materials into our production is a key step in reducing the environmental footprint of our CR rubber products,” said Niels van der Aar, Head of Sustainability at ARLANXEO. “It underlines our commitment to supporting customers with more sustainable material solutions while advancing transparency along the value chain by supplying corresponding product environmental footprint data for ARLANXEO’s entire CR product portfolio.” 
As a key chemical supplier to ARLANXEO, Covestro plays a crucial role in enabling this transition by supporting the availability of ISCC PLUS-certified chlorine.

“At Covestro, we support our customers in reducing emissions along the value chain by supplying more sustainable basic chemical raw materials from our multiple ISCC PLUS-certified production sites,” said Moritz Winterstein, Head of Trading Cluster Basic Chemicals EMEA at Covestro. “Our collaboration with ARLANXEO demonstrates how certified raw materials and renewable electricity can contribute to lowering the product environmental footprint of downstream applications and support customers in achieving their sustainability targets.”

The introduction of ISCC PLUS-certified feedstock, like ISCC PLUS Chlorine, strengthens the position of ARLANXEO as a leading supplier of more sustainable elastomer solutions, particularly for industries with ambitious climate targets, such as automotive, construction, industrial and adhesive applications.

In addition, ARLANXEO can also offer Baypren® Eco grades combining ISCC PLUS-certified chlorine and ISCC PLUS-certified butadiene, enabling further reductions¹ in environmental impact and supporting customers in achieving their sustainability targets without any compromise in performance.

_{¹ Relative changes in Global Warming Potential – GWP100 incl. biogenic [kg CO₂e] 
Example of the relative change of the Global Warming Potential (GWP100 incl. biogenic [kg CO₂e] for Baypren^® 116 M45 as from January 2026. In the graph also the Baypren^® Eco 116 M45 is added as Eco option. A full Product Environmental Footprint report is available upon request.}

Across industries, companies must increasingly demonstrate sustainability progress to meet market requirements, Scope 3 reporting needs, and comply with growing regulatory requirements. ”The CQ-Configurator supports these needs by enabling rapid, data-based environmental performance assessments and by improving transparency along the polyurethane value chain.”, said Patrizia Wegner, VP Sales Flex Foam EMLA, Covestro.

“Companies can now compare material choices and reach their desired product sustainability profile in just a few clicks — eliminating the need for time-consuming calculations and lengthy alignment processes”, said Dennis Wagner, Marketing Manager Soft Furniture, Covestro.

From data to decisions: Making sustainability tangible

The CQ-Configurator intuitively allows users to select between flexible or rigid foam applications — such as mattresses, insulation panels, or even special formulations — define technical properties and specify shares of mass-balanced isocyanate and polyol options. The tool then calculates the associated CO₂ impact and sustainable material share of each formulation scenario.

By translating formulation choices into clear, application-specific sustainability results, the CQ-Configurator provides companies with a transparent fact base to support internal decision-making. It enables rapid comparisons of different material options with exportable results that facilitate cross-functional alignment and customer discussions. At the same time, the tool links material choices to market-relevant sustainability benefits, supporting both product development and marketing strategies.

Designed for broad industry use

The tool supports various professional roles involved in product development, including R&D specialists, procurement teams, sales managers, marketing professionals, and sustainability experts. Its intuitive interface ensures that both technical and non-technical users can leverage the insights effectively.

“As sustainability becomes a key differentiator across markets such as bedding, furniture, construction, and appliances, the CQ-Configurator helps companies to make informed choices that align product performance with economic considerations,” added Dennis Wagner.

With the launch of the CQ-Configurator, Covestro is the first European PU materials supplier to offer a comprehensive digital sustainability assessment tool focusing on multiple polyurethane foam applications. Built on third-party verified raw material LCA data¹ and long-standing PU expertise of Covestro, the tool provides transparent and credible sustainability metrics that support informed decision-making across the value chain. The company continues to expand its digital portfolio to support customers in meeting their sustainability targets.

For more information and to request a demo, please visit the CQ-Configurator landing page.

_{1 Methodology for LCA data calculation certified by TÜV Rheinland}

Latest info on Covestro’s K fair presence:

• Experience “The Material Effect” at K 2025 at Covestro | Covestro AG

Additional Press Releases:

• From Materials to Solutions: Covestro Brings "The Material Effect" to K 2025
• Digital Material Twins in Automotive Design: Imagio^® of Covestro Now Integrated into Autodesk VRED
• Covestro deepens collaboration with Ausell to advance end-of-life automotive plastics recycling
• More speed from design to series production
• From old tires to new car parts: Covestro, Neste and Borealis aim at closing loop for automotive industry 
• Covestro and Deloitte jointly develop Monetization Framework for Circular Economy
• Life Cycle Assessments digitalized: boosting transparency

Covestro at a Glance:

Are you looking for more information? Here you could find further facts about Covestro.

The announcement aligns strongly with this year’s World Green Building Week¹ motto, “Business goes better when you're bold on buildings,” as partners Covestro, Recticel and Brightlands all work towards bold, more sustainable solutions that do not compromise on technical performance but enable the building industry to reduce its ecological footprint and accelerate its transition to circularity.

“The construction sector is responsible for about 37% of global CO₂ emissions, with around a quarter stemming from embodied carbon², e.g. emissions associated with the building materials before a building is even in use,” says Fernando Resende, Marketing Manager Building & Construction EMEA-LATAM at Covestro. “This urgently needs to change. Through our collaboration with Recticel, we’re able to offer a compelling alternative.”

Brightlands Circular Space: Platform for circular collaboration

The 7,500 m² Circular House will serve as a living lab for demonstrating, co-creating and piloting zero-waste plastic technologies. It integrates sustainable design at every level, using innovative materials to reduce both operational and embodied carbon. As part of its mission, Circular House aims to share best practices in circular solutions in its Experience Space and host events in which Covestro and Recticel could share knowledge about circular building materials with students and peers as well.

“In the Circular House, we chose insulation boards that incorporate more sustainable raw materials, meeting both performance and sustainability requirements,” states Lia Voermans, chair of the Steering Board at Brightlands Circular Space. “This way, we apply the same circular principles driving Brightlands Circular Space by embedding them into the design of our demonstration facility for circular plastics, showing how circular and low-carbon materials can be integrated into real-world building projects.”

The building, located on Brightlands Chemelot Campus in Sittard-Geleen, the Netherlands, is part of the Brightlands Circular Space. The facility is the first of its kind: an open-access, circular plastics demonstration hub where R&D can be scaled and integrated with real-world industrial infrastructure.

Jointly furthering sustainability

Covestro has enabled Recticel to use Desmodur^® CQ MS into its Recticel’s “Eurothane^® Silver Impact” insulation boards, which are now used to insulate the roof of the Circular House at Brightlands. Desmodur^® CQ MS is based on climate-neutral³ methylene diphenyl diisocyanate (MDI), produced using bio-circular feedstocks, certified via the mass balance approach. As a result, the “Eurothane^® Silver Impact” boards used in the Circular House contain 43%⁴ less embodied carbon compared to standard versions, while maintaining the trusted technical and thermal performance.

“The buildings of tomorrow must be measured by more than just energy efficiency. They must address embodied carbon, material circularity and long-term environmental impact across their entire lifespan,” says Benedikt van Roosmalen, Commercial Manager at Recticel. “The collaboration with Covestro allowed us to create Eurothane^® Silver Impact insulation boards, which have a reduced carbon footprint compared to conventional insulation boards.”

About Recticel:

Recticel is a Belgian insulation Group with a strong presence in Europe and the USA. It offers smart insulation solutions that advance a carbon-free economy and a better quality of life.
Recticel delivers upon a portfolio of Insulation Boards, Insulated Panels and Acoustic Solutions.
Recticel Insulation designs polyurethane thermal and thermo-acoustic boards for optimal building comfort and energy efficiency. This includes vacuum insulation panels (VIP) by Turvac.
Trimo enables the highest aesthetic standards and extends architectural capabilities with its mineral wool insulated panels and modular space solution, primarily in non-residential applications. With the recent acquisition of REX Panels & Profiles, the portfolio now includes PIR insulated panels.
Soundcoat provides acoustic solutions used in some of the world’s leading technological innovations.
At the end of 2024, Recticel employed 1,275 people and had achieved sales of EUR 610.2 million. Its operations are spread over seven countries.
The Science Based Targets initiative (SBTi) approved Recticel’s near-term targets for the reduction of scope 1, 2 & 3 greenhouse gas emissions by 2030 (from base year 2021) and net-zero targets for 2050.
CDP added Recticel to its 2024 A list for Climate Change.
Recticel is listed on Euronext in Brussels (Euronext: RECT - Reuters: RECT.BR - Bloomberg: RECT:BB).

About Brightlands Circular Space:

Brightlands Circular Space (BCS) is in Sittard-Geleen (NL) and is a cooperation between Brightlands Chemelot Campus, Maastricht University and TNO (the Dutch Organization for Applied Scientific Research).
BCS is part of the Brightlands ecosystem of 30.000 innovators and 350 companies and addresses sustainability by advancing the circular reuse of plastics, transforming them into raw materials for new products and closing the loop on an industrial scale. Currently BCS is building a first of a kind open innovation R&D demonstration center, designed with sustainability and circularity as priorities and with the aim to foster the development and scaling of circular plastic solutions in fields as packaging, automotive and electronics. From here, BCS facilitates collaboration across the entire plastics value chain.

_{¹ World Green Building Week is an annual global campaign organized by the World Green Building Council (WorldGBC) to accelerate sustainable buildings for everyone, everywhere. The 2025 edition takes place from September 8–12, with activities coordinated by Green Building Councils and partners worldwide.}

_{² According to the Global Alliance for the Building and Construction from United Nations Environment Programme}

_{³ Climate neutrality is the result of an internal assessment based on the TÜV reviewed EcoPAss LCA method (ID No. 0000083440), of a partial product life cycle from raw material extraction (cradle) to the factory gate (of Covestro), also known as cradle-to-gate assessment. The calculation takes into account biogenic carbon sequestration based on preliminary data from the supply chain. No compensation measures were applied.}

_{⁴ Internal LCA calculation according to EN15804+A2 standard, for modules A1 - A3 (cradle to gate), based on the mass balance method.}

The more than 20 innovation stories that Covestro presents at its booth are closely linked to this guiding idea and the company's long-term vision of becoming fully circular. This vision is gaining additional importance under the current circumstances – short-term challenges and overlapping crises that require resilience and adaptability.

Covestro’s CEO Markus Steilemann emphasized this at the traditional K pre-press conference: "The world seems to have gone off track, and the chemical industry is feeling the full force of the current multiple crises. At the same time, the future will be ever greener and smarter. At Covestro, we are paving the way for that for many sectors with our recyclable, climate-neutral high-performance plastics – whether in e-mobility and autonomous driving, efficient buildings, or digitalization. We are excited to showcase the diverse and beneficial effects of our materials for our customers and partners at this year's K trade fair."

Covestro's Guiding Idea: "The Material Effect"

At booth A75 in Hall 6, Covestro will place special emphasis on progress and innovations in the areas of Sustainable Future, Automotive, Electronics, Healthcare, and Sports & Leisure. Among the highlights at the booth will be a new concept vehicle for public transportation: The SUE "People Mover". The self-driving urban e-shuttle has been developed by UE | STUDIOS. It features full polycarbonate glazing, polycarbonate for lidar sensors, as well as the lightweight and highly durable mono-material Arfinio^® and TPU. Also among the exhibits is the digital sampling tool IMAGIO^®, which enables realistic digital visualization of product designs, thereby replacing physical samples with digital material twins in early development phases.

With these and many other stories and exhibits at the booth, Covestro demonstrates under this year's guiding idea "The Material Effect" what role high-performance materials play in a sustainable world. "The Material Effect" combines best in class materials with process and innovation expertise, enabling the leap from laboratory to industry. "It is precisely this unique combination of material science, process- and application development that makes the decisive difference," said Jochen Hardt, K 2025 project lead and Vice President Global Marketing Mobility in the Engineering Plastics business entity at Covestro, at the press conference. “'The Material Effect' enables our customers and partners to achieve more – in terms of sustainability, circularity, and performance of their products.”

Progress Towards Corporate Vision and Strategy

Covestro pursues a clear strategic vision: to become fully circular and make the circular economy a global guiding principle. This includes the use of alternative raw materials, switching to green energy, and developing advanced recycling technologies. The company has set a goal to become climate-neutral in its own operations (Scope 1 and 2) by 2035 and to achieve complete climate neutrality along the entire value chain (Scope 1-3) by 2050. To this end, Covestro has already signed eleven power purchase agreements (PPAs) and now covers around 16 percent of its global electricity needs from renewable sources.

Furthermore, Covestro is consistently expanding the use of alternative raw materials – with the goal of largely avoiding the use of fossil primary raw materials in the long term. The company is to that end currently developing and testing novel recycling technologies for polyurethanes, polycarbonates, and elastomers.

The commitment to the circular economy is furthermore reflected in the product portfolio: Products with the brand suffix "CQ" – which stands for Circular Intelligence – contain at least 25 percent alternative raw materials. For polycarbonates, Covestro differentiates its offering with specific labels: "RE" stands for products based on renewable raw materials and produced with renewable electricity.^* "RP" identifies products with chemically recycled post-consumer waste.^* "R" designates products with mechanically recycled material content.

Such products aFor more information about the trade fair presence, visit:

For more information about the trade fair presence, visit:
Experience “The Material Effect” at K 2025 at Covestro | Covestro AG

_{* attributed via mass balancing}

Latest info on Covestro’s K fair presence:

• Experience “The Material Effect” at K 2025 at Covestro | Covestro AG

Additional Press Releases:

• Covestro deepens collaboration with Ausell to advance end-of
• More speed from design to series production
• From old tires to new car parts: Covestro, Neste and Boreali
• Covestro and Deloitte jointly develop Monetization Framework
• Life Cycle Assessments digitalized: boosting transparency

Covestro at a Glance:

Are you looking for more information? Here you could find further facts about Covestro.

Hanno Bruemmer, Head of Supply Chain and Logistics EMLA at Covestro, stated: “The entire value chain must be involved to achieve our joint goal of climate neutrality by 2050. Reliable, efficient and sustainable logistics for our ever more sustainable products are integral to this effort. We collaborate with our customers and transport companies to optimize the supply chain. This includes improving load capacity, selecting the best transport modes and routes, and introducing using sustainable and future-oriented energy sources like green electricity or HVO to replace fossil fuels.”

As part of the collaboration, DB Cargo BTT provides Covestro with an end-to-end transport solution that combines several sustainable approaches: First, the chemicals are transported in tank containers from the production sites of Covestro in Germany to a nearby railway terminal using bio-fuel (HVO 100)-driven trucks. The tank containers are then transported to a distribution center in Poland via rail, keeping trucks off the road and saving respective emissions. From there, bio-fuel (HVO 100)-driven trucks are again deployed to distribute the chemicals to end customers in Poland to ensure on-time delivery. This particular bio-fuel is one of the most sustainable alternatives to fossil diesel. Altogether, the combination of these modes of transport saves at least 70% of CO₂ emissions compared to conventional road transport methods.

Torsten Lüders, Managing Director of DB Cargo BTT GmbH, points out: “At DB Cargo BTT, we also rely on working with external partners across all modes of transport in order to arrange traction or first and last mile services as efficiently as possible for our customers. For Covestro, we have recently transported essential chemical products to Poland and we’re now happy to combine our rail expertise with bio-fuel-driven trucks for the first and last mile. This collaboration exemplifies our commitment to enabling more sustainable supply chains and supporting the transformation of the chemical industry. Projects like these demonstrate how we, as part of the DB Cargo group, offer our customers a significant degree of added value and are an essential part of European supply chains.”

The collaboration is designed to be flexibly scaled in the future to accommodate growing business needs. It also sends an important signal to customers of Covestro, such as the Polish Selena Group, a global manufacturer of construction chemicals and materials, who benefit from the delivery of MDI with a lower carbon footprint, as it helps to reduce their Scope 3 emissions.

Bernd Hennig, Head of Trading Cluster MDI at Covestro remarked: “Together with Selena Group, we are committed to advancing sustainable solutions across the entire value chain, offering our valued customers not only more sustainable materials but also sustainable transportation solutions.” Michal Specjalski, Member of the Management Board of Product and Innovation at Selena Group added: “Today, sustainable business no longer means having to compromise between efficiency and quality. In Selena Group we are constantly increasing our commitment to the development of sustainable construction. We carefully follow trends and changes in the world around us. We are constantly working on minimizing our environmental impact and rational resource management. That’s why we are delighted to have Covestro and DB Cargo BTT at our side as strong partners who share our commitment to reducing emissions and achieving climate neutrality targets in Europe and worldwide.”

Selena Group and Covestro are already collaborating in multiple ways to advance the circular economy. For instance, they are developing polyurethane (PU) foams for improved thermal insulation in buildings which are based on MDI of the Desmodur^® CQ product range. It is ISCC Plus-certified, using plant-based raw materials through mass balancing. As a result, these products have a lower carbon footprint compared to those derived from fossil raw materials—and now, thanks to the transport solution, they will also be delivered to Selena in a more sustainable way.

¹ _{The reduction in CO₂ emissions is based on a comparison between the use of HVO100 renewable diesel and conventional fossil diesel}

For the highly competitive construction sector, the product sold by Selena offers clear advantages: It can be used with various types of blocks (ceramic, silicate, ACC) with high accuracy and allows for a higher yield compared to traditional cement mortars. The product also improves construction efficiency by curing twice as fast as traditional cement mortars. Additionally, it can be used in a wide range of operating temperatures from -5 degrees Celsius to +30 degrees Celsius, which helps reduce temperature-induced work stoppages.

“Materials play a decisive role for an ever more climate neutral and circular economy”, said Bernd Hennig, Head of Trading Cluster MDI EMEA at Covestro. “If materials providers early in the value chain join forces for climate neutrality, the impact on end products will be significant. In this spirit, we are therefore very happy to deepen our collaboration with our like-minded partner Selena to help the construction sector bring down emissions and meet its climate neutrality targets in Europe and worldwide.”

Buildings are responsible for over one third of greenhouse gas emissions in the EU alone. As about 75% of the buildings in Europe do not meet energy efficiency requirements, the building sector faces a wave of renovations over the coming years. In fact, the EU has just recently updated the Energy Performance of Buildings Directive (EPBD). It states that by 2050, all buildings in the EU should be net-zero emission buildings².

More sustainable adhesive instead of cement

“With existing and upcoming climate neutrality regulations for the construction sector, we expect a steeply rising demand for sustainable building materials”, said Miroslaw Truchan, Senior Category Development Manager, Selena Group. “With a great partner like Covestro, we jointly drive innovation in the construction materials industry. We both believe that innovative products can play a vital role in achieving climate neutrality targets and put us ahead of the curve.”

The Tytan Professional^® Adhesive for Bricklaying uses Desmodur^® CQ MB of Covestro, a bio-based MDI (methylene diphenyl diisocyanate), of which the plant-based feedstock is mathematically attributed to the final product via the mass balance approach certified by the ISCC Plus standard.

Tytan Professional^® Adhesive for Bricklaying is the third product launched from the collaboration between Selena and Covestro. The partnership was deepened in 2023, aimed at collaborating to craft a more sustainable range of polyurethane (PU) foams for enhancing thermal insulation of buildings. Bio-attributed methylene diphenyl diisocyanate (MDI) of the Desmodur^® CQ MB-series of Covestro is already being used in an enhanced version of Selena’s Ultra Fast 70 one-component foam, primarily applied in the installation of windows and doors. Also, this product is ISSC Plus certified to include plant-based feedstocks through mass balancing and allows for an up to 45% reduced carbon footprint compared to fossil-based products.

_{¹Comparison of 1 can of Tytan Adhesive for Bricklaying (750ml) with the data for generic cement mortar for 1,5 x 25 kg bags.
²https://www.consilium.europa.eu/de/infographics/fit-for-55-making-buildings-in-the-eu-greener/#:~:text=Mit%20der%20%C3%9Cberarbeitung%20der%20Richtlinie,in%20der%20EU%20Nullemissionsgeb%C3%A4ude%20sein}

Covestro will supply Carlisle with methylene diphenyl diisocyanate (MDI) that is based on ISCC PLUS certified mass balanced bio-circular raw materials and features up to a 99%¹ lower product carbon footprint than fossil-based MDI. It specifically has a CO₂ reduction potential of 2.4 KG per KG of MDI produced.² This will enable Carlisle to produce its high-performance polyiso insulation boards with lower embodied carbon.

The collaboration between Covestro and Carlisle extends a legacy of joint innovation in the construction industry that spans decades. As sustainability targets for the built environment stand to increase, the two companies are prepared to develop and introduce the next generation of insulation materials.

“Covestro’s vision to become fully circular requires R&D advancements that directly support the scope 3 goals of our customers, like Carlisle,” said Hermann-Josef Doerholt, global head of the segment Performance Materials at Covestro. “Covestro has some of the most aggressive sustainability and climate targets in the chemical industry, and the further we progress in developing solutions to achieve them, the more the effects resonate along the supply chain.”

Covestro will supply its Mondur^® CQ 489 MS isocyanate to Carlisle. The CQ, or “Circular Intelligence” designation represents a broad family of Covestro’s circular products with an attribution of at least 25 percent alternative raw materials derived from biomass or recycled plastics.

Carlisle Construction Materials, a global leader in building envelope solutions, aims to be net zero by 2050. Carlisle will produce its bio-based rigid foam insulation, which contains 5% bio-circular content, for the SynTec, Versico, Hunter Panels and WeatherBond brands. This state-of-the-art bio-based insulation is the latest addition to Carlisle Construction Materials' portfolio of sustainable building products.

"Carlisle Construction Materials has always been at the forefront of developing high-performance construction products that lead the way in sustainability," said Steve Schwar, President of Carlisle Construction Materials. "With our new bio-based rigid foam insulation, we are demonstrating our unwavering commitment to environmental responsibility while ensuring that our customers have access to the most advanced building materials available. Our partners play a pivotal role in the realization of our bio-based isolation," added Steve. "Together, we're not only pushing the boundaries of material science, but also supporting the construction industry's transition to a more sustainable future."

“At Covestro, we have long understood the unparalleled performance attributes of polyurethane insulation,” said Julia Rubino, head of sales for Performance Materials at Covestro North America. “The ability to provide an innovative, bio-circular raw material solution to a long-time partner and a leader in the construction industry, like Carlisle, shows that future-focused sustainable solutions are available today.”

Covestro has ISCC PLUS certified facilities in every major global market, including its manufacturing facility in Baytown, Texas. In support of its vision to be fully circular, Covestro aims to be operationally climate neutral (scope 1 and scope 2) by 2035 and climate neutral for scope 3 by 2050. The company currently has hundreds of circular CQ products and is continuously expanding its product portfolio.

_{¹ Exact percentage depends on the amount of allocated raw material. 
² Bio-circular attributed MDI contains ~60% ISCC PLUS certified feedstock. The calculation is based on Covestro-specific production and supply chain data, replacing fossil raw material with ISCC PLUS certified renewable feedstock via the mass balance approach.}

At its booth (C20), Covestro will present materials and solutions that support the corporate vision of achieving a circular economy. Climate neutrality¹ is a core element of that, for which the company just recently announced its “Scope 3 emission” targets, encompassing anything from the raw material base of products to their transport, the performance during their lifetime and the end of their life. By 2035, Covestro intends to reduce 30% of those emissions, while being entirely climate neutral across all scopes by 2050. Working towards that goal, the company’s product portfolio will become ever more sustainable.

“As provider of polyurethane raw materials and solutions, including for example systems for Elastomers, we are at the forefront of circularity and climate neutrality. We take that responsibility seriously and develop recycling technologies, switch to renewable energy and already started the switch to an alternative raw material base,” says Thomas Braig, Head of Elastomers at Covestro. "All the while we ensure maximum quality and performance of our products and to enable our customers to be successful to meet the needs and demands of the market. At our booth at UTECH Europe, customers and interested parties can get a glimpse of how we combine circularity and climate neutrality with product and innovation quality.”

To achieve full circularity, collaborations across value chains in and beyond core industries such as Automotive, Building and Construction or Furniture and Appliances will be key. The motto of Covestro’s booth therefore is “Crafting Solutions For You”, inviting for in-depth exchanges and discussions. It is divided into three core areas:

Crafting Sustainability

In the area dubbed “Crafting Sustainability”, Covestro will be showcasing innovative products and solutions from the fields of alternative raw materials, innovative recycling and renewable energies that tile the way to circularity. One example among the exhibits is Desmodur^® CQ MS. This climate-neutral MDI (cradle-to-gate assessment) is a key component in the production of low-carbon PU insulation boards, specifically designed for thermal insulation purposes.

Crafting Innovations

In the area “Crafting Innovations”, Covestro shows that innovative materials and solutions will be key to answer an ever more demanding market in terms of properties and reliability while striving to cope with the commanding challenge of a more circular and climate neutral world. At the booth, the company will for example showcase a Baulé^® alpha low pressure dispensing machine for cast PU processing. This machine is notably equipped with catalyst and pigment direct injection and allowing an output up to 10 kg/min. To demonstrate automated production capabilities, the company will also showcase a 3-axis robot equipped with sensors and camera allowing automatic mould detection and casting frame selection as well as safety alarms to improve and secure the casting process.

Covestro will furthermore give a glimpse on the latest in terms of recycling with its Evocycle^® CQ program. The goal of the Evocycle^® CQ Mattress initiative is to bring end-of-life polyurethane (PU) mattress foam back to its building blocks polyether polyol and toluene diamine (TDA), a key precursor of toluene diisocyanate (TDI), via chemical recycling. These shall then again be used just like virgin materials.

Crafting Performance

Circularity won’t happen unless sustainable products provide at least equal value and quality for customers and industries. Covestro aims to provide its customers with exactly that – and will showcase some examples how it “crafts performance” during UTECH Europe. For example several products made with Desmodur^® 15 prepolymer based systems. On top of improving safety and comfort in the railway sector, these cost-effective and safe solutions can also boost the sewing process in the loom shuttle or reduce maintenance costs in the offshore wind industry.

¹ _{Climate neutrality is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (of Covestro), also known as cradle-to-gate assessment. The methodology of our LCA, for which an external audit and certification will soon be available, is based on the ISO 14040 and 14044 standards. The calculation takes into account biogenic carbon sequestration based on preliminary data from the supply chain. No compensation measures were applied.}

"Collaborations along the value chain with like-minded partners are key to enable a circular and climate neutral world. Materials play an important role for example in reducing the carbon footprint of buildings. With Henkel’s new wood adhesive based on Covestro’s ever more sustainable raw materials, we jointly contribute to the circular transformation of the construction industry", says Dr. Thomas Roemer, Head of the Coatings and Adhesives Business Entity at Covestro. 

Materials are key for sustainability of various sectors 

By enabling timber construction, load-bearing adhesives already contribute to sustainability of building structures. Since timber is a natural material, its properties inherently underly bigger variations than most synthetically produced materials. It is for example prone to deformation, inhibiting aesthetics as well as functionality, usually limiting its use in load-bearing or other demanding applications. The solution: Utilizing technologies and processes to bond different layers of wood, like cross-lamination or glue-lamination with polyurethane adhesives. Thereby it is possible to create wood panels that maintain strength, form and functionality over time. By increasing the use of alternative raw materials, the carbon footprint of such material can further be improved. 

"This is another step towards an ever more sustainable and circular future. Thanks to our work with Covestro, we are able to supply two of our best-selling polyurethane adhesives now being manufactured using alternative raw materials. In addition and by using the mass balance approach, there is no change in product performance and all load bearing certificates of the adhesives remain. With this, we provide our direct customers as well as architects and construction companies with a solution that contributes to their aim of reducing the impact of materials on the overall carbon footprint of buildings", says Dr. Claudia Meckel, Head of Product Development Engineered Wood at Henkel. 

Henkel and Covestro both treat sustainability and fostering a circular economy with high priority. For Covestro, broadening its raw material base with bio-based or recycled solutions is key part of that endeavor. Since such alternatives are blended with conventional raw materials in the manufacturing process, segregation and allocation are challenging. To attribute the used alternative feedstock to a final product, the mass balance approach is therefore used. That is a chain of custody method allowing to mix traditional and alternative raw materials during production, but separating and allocating them to products in bookkeeping. The soundness and compliance of this approach is certified externally by the internationally recognized ISCC PLUS scheme. For the wood adhesive, all involved sites and partners of Henkel and Covestro are certified according to this scheme. 

^{1 share of the organic mass excluding inorganic materials}

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 towards full circularity. It also helps reduce scope 3 emissions for Covestro and its customers.

"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 in Covestro’s manufacturing processes used for the production of methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI), respectively. MDI and TDI are critical raw materials used to produce rigid and flexible polyurethane foams, which are used in applications such as household appliance and building insulation as well as furniture and car seats.

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

Encina’s proven proprietary catalytic technology produces circular feedstock with a lower carbon footprint when compared to those based on fossil fuels and an exceptionally high yield.

"Encina is proud to be working with Covestro, a company with a long track record of innovation and commitment to sustainability. 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," said David Roesser, Chief Executive Officer of Encina.

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

Thanks to its long history in polyurethanes chemistry, Covestro boasts a portfolio of insulation material solutions renowned for exceptional thermal and weather resistance. Initially used in refrigeration, they have great potential to enhance energy efficiency in construction.

“Covestro is devoted to becoming fully circular. At the same time, we help our customers and major industries to achieve climate neutrality through our material innovations.¹ The construction industry, particularly in China, is central to this mission. With our new partnerships we will expedite the adoption of more sustainable construction practices in China and jointly play a vital role in mitigating climate change,” said Dr. Markus Steilemann, CEO of Covestro, during the signing of agreements with named companies at the China International Import Expo (CIIE), an event dedicated to promoting imports and international trade.

One key collaboration involves PDG Group and insulation integration specialist Collodin, working on an innovative polyurethane exterior wall insulation system designed to be thinner and lighter than conventional alternatives. This system, named the ‘carbon-optimized composite wall insulation structural integration system’, combines polyurethane insulation with low thermal conductivity and a lightweight non-combustible layer, further reinforced by composite tie bars, ensuring superior insulation. A comprehensive study will evaluate its energy efficiency, safety, and economic viability before implementation on the developer’s future projects, provided it meets all compliance conditions.

“We look forward to partnering with sustainable material expert Covestro in promoting this innovative solution, which could also set new standards in the industry. We believe this collaboration will facilitate the transformation and upgrade of the construction sector, promoting low-carbon, high-quality development in line with China’s dual carbon goals,” emphasized Li Junlan, Chairman of PDG Group.

Another groundbreaking partnership involves Lujiazui Group and Chinese composite profile maker Deyilong. Together, they are developing a low-carbon, energy-efficient window and door system tailored to meet Shanghai’s requirements on ultra-low energy buildings. This system will leverage Covestro’s Baydur^® Pultrusion, a composite material with exceptional thermal insulation, mechanical strength, and durability. The whole window system thereby can be made thinner for better aesthetics.

“We look forward to working with partners including Covestro, which has a proven track record in the field of efficient insulation in windows and doors. We aim to leverage Lujiazui Group’s property development strengths in Pudong, Shanghai to promote these excellent window and door systems and help elevate the industry’s energy efficiency level,” said Xu Erjin, Chairman of Lujiazui Group.

“We are excited to be connected by the CIIE with Chinese property developers, which provides us with new opportunities that will last long. We intend to promote more sustainable and low-carbon solutions for the construction industry, enhance market penetration of energy-saving building solutions, and make efforts towards China’s infrastructure development and dual carbon goals,” said Holly Lei, President of Covestro China.

For a closer look at Covestro’s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

^{1 Carbon neutrality of Covestro products is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (of Covestro), also known as cradle-to-gate assessment. The methodology of our LCA, for which an external audit and certification will soon be available, is based on the ISO 14040 and 14044 standards. The calculation takes into account biogenic carbon sequestration based on preliminary data from the supply chain. No compensation measures were applied.}

“In the face of global challenges such as climate change, innovative materials like plastics are needed more than ever to drive progress towards a truly sustainable future ,” says Dr. Markus Steilemann, CEO of Covestro. “China, with its ambitious climate targets, is a leader in dynamic markets like electric vehicles and renewable energy. We are eager to contribute our material expertise to aid the nation’s transition, while driving fresh business momentum.”

Under the banner of “Becoming Fully Circular and Climate Neutral,” Covestro’s CIIE booth features dedicated areas, including “Beyond Mobility”, “Green Home”, “Renewable Energy” and “Fully Circular”. Several showcases will highlight the pivotal role of sustainable materials in these sectors. Additionally, a dedicated “Covestro Story” area shall engage visitors, particularly those outside the chemical industry.

Chemical recycling of polyurethane foams

The “Fully Circular” zone will for example demonstrate advancements in recycling technologies and in the use of alternative raw materials. Notably, it will showcase a recycled foam created through Covestro’s proprietary chemical recycling process. This groundbreaking process is capable of transforming end-of-life mattress foam directly into its core building blocks, breathing new life into old foam.

At the center of “Beyond Mobility” stands Chinese EV maker HiPhi’s latest luxury SUV – the HiPhi Y. It extensively incorporates Covestro’s advanced and sustainable material solutions in interior and exterior components. This includes the use of high optical performance polycarbonate in LiDAR lenses, taking advantage of the material’s temperature resistance up to 115 degrees Celsius along with its excellent infrared transmittance, ensuring the reliable and stable operation of the entire system. The strengthened partnership builds upon a cooperation agreement signed between the two sides at last year’s CIIE.

Covestro also aims to foster collaborations for ultra-low energy buildings (ULEB). The company’s materials can support making buildings more energy efficient and causing less emissions – key to the sector, which is one of the major contributors of global emissions. Covestro will for example show polyurethane pultrusion composites for window frames, and highly efficient building insulation solutions at the “Green Home” zone. At this year’s CIIE, the German materials manufacturer will sign agreements with Chinese real estate developers and value chain partners, forming multi-party business collaborations in this vital domain to expedite the adoption of sustainable solutions.

“The CIIE has consistently proven to be a highly rewarding endeavor for Covestro. It offers a unique platform to strengthen partnerships and promote our approach to becoming circular and how we can support downstream industries to do the same,” says Holly Lei, president of Covestro China. “We are committed to delivering versatile solutions and exploring innovative business models in collaboration with value chain partners both within and beyond the CIIE venue, in support of China’s sustainable development.”

The CIIE stands as the world’s first national-level import-themed exhibition, an annual event since 2018. This year, it draws over 3,400 international exhibitors and is expected to host hundreds of thousands of visitors. The CIIE serves as a platform that fosters international procurement, investment promotion, cultural exchange, and open cooperation. China’s ambitious climate goals, including reaching peak carbon emissions by 2030 and attaining carbon neutrality by 2060, carry global significance to meet the Paris’ agreement and remain a consistent focal point in the exhibits and activities at the CIIE.

For a closer look at Covestro’s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

This site of Epurex Films, a wholly owned subsidiary of Covestro, houses research & development, application development and production for the semi-finished products. The company has invested a low double-digit million Euro amount in the expansion of the center of excellence for TPU-Films.

The new capacity is intended to meet the growing global demand for multilayer TPU films. They are used in automotive interiors and construction, among other applications. Breathable, water-impermeable specialty films have also proven their worth in wound care and outdoor clothing.

"With this capacity expansion, we are strengthening our Bomlitz site and our position as a leading supplier of technical specialty films," said Dr. Thorsten Dreier, Covestro's Chief Technology Officer, at the inauguration. "At the same time, we are investing in promising technologies and applications and creating new jobs."

For Aleta Richards, global head of the Specialty Films business entity, the expansion offers opportunities to respond even better to individual customer needs and offer more sustainable products. "For some time now, we have also been developing customer-specific solutions with films made from alternative raw materials, as we are also seeing increasing demand in this area. The development and production of partially biobased products is therefore to become a new focus at the Bomlitz site."

Covestro is fully geared toward the circular economy and aims to become climate-neutral by 2035. In 2022 the Bomlitz site has switched its power supply completely to green electricity. Epurex Films is one of Covestro's three competence centers for specialty films in Germany, along with Leverkusen and Dormagen.

Selena Group, a pioneering figure in construction chemicals since its establishment in 1992, is leading the way by introducing their enhanced Ultra Fast 70 one-component foam, primarily used for window and door installations. This product, with its remarkable yield of up to 77 liters per can and a very short cut time of just 20 minutes, is already recognized for its efficiency.

What makes this innovation even more remarkable is the incorporation of a bio-attributed MDI (methylene diphenyl diisocyanate) from Covestro in its production process. The sustainability aspect lies in the mathematical assignment of plant-based feedstocks to MDI through mass balancing, resulting in a 60 percent reduction in carbon footprint compared to fossil-derived counterparts, after all.

Same quality and properties as fossil counterparts

This pioneering collaboration highlights that sustainability doesn't necessitate compromises in quality. The new-generation foams, despite their bio-based content, boast the same good quality and properties as their fossil counterparts due to their identical molecular composition.

This allows customers to seamlessly integrate them into their existing operations without any loss of quality. The sustainability of these products is validated by the globally recognized ISCC PLUS standard, certifying the use of plant-based raw materials and their precise allocation in the manufacturing process. The products retain their excellent quality, but at the same time meet the requirements of today's environmental protection and correspond to the trends of the future. This action is proof of the effectiveness of building cooperation through innovation.

Selena also offers bio-based polyols

Selena doesn't stop at foam innovation – their commitment to a sustainable future is embodied in their line of BIOSELENOLS^®, own-produced bio-based polyols that complement their foams.

This commitment extends to also including recycled polyethylene terephthalate (PET) as a formulation component for every foam variant. Their Environmental Product Declaration (EPD), verified by the German Institut Bauen und Umwelt e.V. (IBU), leverages life cycle analysis to assess the environmental impact of buildings and serves as a benchmark for Selena's environmental stewardship.

Covestro focuses on circular economy and climate neutrality

Covestro is committed to a circular future, underscored by an unwavering focus on alternative raw materials, innovative recycling technologies, renewable energies, and strategic collaborations, and plans to achieve climate neutrality by 2035 (scope 1 and 2). The company is methodically expanding its portfolio of alternative products, extending invaluable support to its partners in their climate protection pursuits.

Their commitment to creating a circular and sustainable world is also tangibly demonstrated through the "CQ" concept – a testament to "Circular Intelligence". The "CQ" label on the mass-balanced MDI of the Desmodur^® CQ grade utilized by Selena solidifies Covestro's dedication to alternative raw materials and their pivotal role in sustainable innovation. This innovative spirit is a reflection of Covestro's role as a global leader in manufacturing high-quality polymer materials that significantly contribute to sectors such as mobility, construction, electronics, and more.

The façade of the Texoversum is just one example of a brand new technology that could completely revolutionize the construction industry. The sophisticated structure was designed on the computer and is based on carbon fibers wound by robots. Similar to networks in nature, for example in spider webs, beetle wings or palm leaves, the fiber structures are also very lightweight, but at the same time highly resilient, and require very little material. This not only saves resources, but also facilitates transport and assembly of the components.

The co-inventor of the innovative technology is architect Prof. Moritz Dörstelmann, whose company FibR also realized the façade of the Texoversum: "In contrast to conventional steel and concrete structures, we are able to get by with a minimum of material, because the robots only process as many fibers as are needed for the strength of the respective structure. As a result, we also save large amounts of CO₂ emissions." Dörstelmann also sees advantageous applications for the technology in roof structures, supports and, not least, interior fittings.

The necessary strength and durability of the composite is provided by Covestro's aliphatic polyurethane resin system Desmocomp^®, in which the fibers are embedded as if in a matrix. "The resin is highly resistant to weathering and the sun's high-energy UV radiation, making it very suitable for outdoor applications," explains Pejman Norastehfar, architect and specialist for construction applications in Covestro's Coatings and Adhesives segment. “Other plus points in the construction sector are its excellent chemical and flame resistance.”

In the Texoversum, the spun façade performs several important functions at once: it gives the building a unique look and stabilizes the surrounding balconies. It also serves as a railing and provides the necessary shade for the glass front behind it.

The building provides approximately 3,000 square meters of space for workshops, laboratories, a textile collection, think tank space and classrooms. The costs for the construction of the Texoversum amounting to 18.5 million euros were borne by the employers' association Südwesttextil, whose members include FibR GmbH in Kernen, east of Stuttgart.

Kaynemaile’s new RE8 Architectural Mesh will deliver an ISCC PLUS certified sustainable share of up to 88 percent of its architectural product. Moving Kaynemaile’s production away from traditional fossil-based materials to a bio-circular attributed material will offer a reduction of the carbon footprint of the polymer material by up to 80 percent, cradle-to-gate, including biogenic uptake, enabling circular economy efforts while maintaining proven functionality, ISCC PLUS certified and LEED-enabled.

"RE8 is a major milestone in Kaynemaile’s 20-year commitment to circular economy practices," says Kayne Horsham, Founder of Kaynemaile. "From the start we have sought a high-performance sustainable feed-stock material solution that exceeds building compliance standards yet has a lighter environmental footprint. Covestro’s bio-circular attributed polycarbonate portfolio is now able to deliver on this ambition."

"Makrolon^® RE polycarbonate from Covestro offers designers a sustainable material solution, while still maintaining the key benefits of traditional polycarbonate," says Joel Matsco, Senior Marketing Manager, Covestro. "The polycarbonate material enables an unencumbered design experience and provides a second life to upstream waste and residues. We look forward to seeing RE8 from Kaynemaile on buildings and in spaces around the world."

With Kaynemaile’s origins in the Armory department of The Lord of the Rings film trilogy some 20 years ago, the company has evolved into an international business built on its innovative nil-waste liquid-state manufacturing process coupled with a compelling design aesthetic and a team focused on providing bespoke functional design solutions at scale. Kaynemaile’s manufacturing facility is ISCC PLUS certified and the introduction of its RE8 bio-circular material helps position architects, planners, and builders to meet regulated carbon reduction targets.

"RE8 is the most significant initiative by the company since its founding," says Kayne Horsham. "We are proud to be at the forefront of this future proofing circular economy technology."

"Thanks to this new milestone, Covestro will soon be able to serve even more customers around the world with an easily accessible, more sustainable product portfolio," says Sucheta Govil, Chief Commercial Officer of Covestro. "Customers in North America can now reduce their carbon footprint and Scope 3 emissions with drop-in, mass-balanced materials derived from recycled and bio-attributed products."

Learn more about Covestro’s ISCC PLUS certification in the US: https://www.covestro.com/en/company/covestro-worldwide/united-states/covestro-in-the-united-states/sustainability-and-innovation/iscc-plus-certification

Covestro is the first manufacturer of polyurethane and polycarbonate raw materials to receive this certification in the United States. The certification is an important milestone for both Covestro and the industries it serves, including the automotive, construction, comfort, electronics and appliance industries, which will now have access to ISCC PLUS-certified products made from more sustainable raw materials in North America.

To underscore how the products support both the company’s vision to become fully circular and its customers' journey to greater sustainability, Covestro has introduced a specially branded product line with the suffix "CQ". CQ, which stands for ʺCircular Intelligenceʺ, is a portfolio of products with attribution of at least 25 percent alternative raw materials derived from biomass or recycled plastics. 

Covestro is also introducing the name Evocycle^® CQ for all evolutionary recycling processes. The first project of this kind is called Evocycle^® CQ Mattress and denotes an innovative chemical recycling technology for polyurethane mattress foam. Covestro currently has more than hundreds of CQ products and is continuously expanding this portfolio.

The ISCC PLUS certified products produced at Covestro’s Baytown facilities will include: 
• Methylene diphenyl diisocyanate (MDI) – used primarily in the production of rigid polyurethane foam for efficient insulation of refrigeration equipment and buildings
• Toluene diisocyanate (TDI) – used in the production of flexible foam for the automotive and furniture industries
• Makrolon^® RE – polycarbonate, a high-grade plastic used in the automotive, electronics and medical industries, among others
• Hexamethylene diisocyanate (HDI), isophorone diisocyanate (IPDI), Desmodur^® W and Desmodur^® Z – used in various coatings and adhesive applications

Covestro expects to begin supplying select ISCC PLUS-certified products from its Baytown facility in the second half of 2023.

The products will be produced using a mass-balance approach. Sustainable raw materials will be accounted for throughout both the value chain and production process, allowing for an accurate attribution in the end products. The existing production infrastructure will be utilized while reducing the carbon footprint of the final products.

ISCC is an internationally recognized sustainability certification for biomass and bioenergy. The standard applies to all stages of the value chain and is recognized worldwide.

"In our studio, we offer solutions for current challenges, but also want to inspire our customers with visions for ambitious future goals. True to our motto 'Status Next,' we are our customers' partner in driving the circular economy in the coatings and adhesives industry to make our lives more sustainable," says Dickon Purvis, Head of Marketing in the Coatings and Adhesives segment at Covestro. "Only in close exchange with external stakeholders can we identify trends early on and offer products and technologies tailored to future requirements."

In focus: circular economy, productivity and regulations

For the coatings and adhesives sector, as well as downstream industries, the transformation to a circular economy is key to combating climate change and conserving resources. As a leading raw material manufacturer, Covestro is aware of the great responsibility it bears for optimizing these products so that they make an important contribution to the transformation as fundamental building blocks for coatings and adhesives formulations.

At the same time, it is important to maintain or even increase productivity at a high level to ensure growth and profitability in these industries. And last but not least, Covestro wants to support customers in complying with stricter regulations and standards, with the aim of improving occupational safety and industrial hygiene. For all these goals, the company has set up the Status Next Studio platform to ensure lasting and strong customer relationships in an increasingly digitalized world.

The spectrum of applications and industries for Covestro solutions is wide, ranging from future mobility, smart living and infrastructure development to sports and leisure, health and beauty, architecture and construction, printing and packaging. The Status Next Content Warehouse offers highlight topics and best practice examples on the aforementioned focus areas and industries.

Webinars on key trends

Covestro invites customers, partners and anyone interested to dive into the key trends impacting the world of coatings and adhesives. To this end, the company is offering three webinars in English on the following key topics:

Circular Economy 
Tuesday, March 21, 2023, from 14:00 CET. 
Register at https://solutions.covestro.com/en/webinars/2023-03-21-circular-economy/?utm_medium=offline&utm_source=press_release&utm_campaign=ca_2023_status_next&utm_asset=26225&utm_content=status_next_q1_corp_press_release_ce_webinar_registration_page

Regulations 
Wednesday, March 22, 2023, from 14:00 CET 
Register at https://solutions.covestro.com/en/webinars/2023-03-22-regulations/?utm_medium=offline&utm_source=press_release&utm_campaign=ca_2023_status_next&utm_asset=26225&utm_content=status_next_q1_corp_press_release_regulations_webinar_registration_page

Productivity 
Thursday, March 23, 2023, from 14:00 CET 
Register at https://solutions.covestro.com/en/webinars/2023-03-23-productivity/?utm_medium=offline&utm_source=press_release&utm_campaign=ca_2023_status_next&utm_asset=26225&utm_content=status_next_q1_corp_press_release_productivity_webinar_registration_page

In its Status Next Collaboration Suite, Covestro invites participants to further webinars on overarching and strategic coatings and adhesives topics for various industries, where participants can directly exchange ideas with experts from the company.

The chlorine is used on site as a raw material for the production of MDI, a precursor for the manufacture of rigid polyurethane foams as used for producing energy-efficient insulation solutions for buildings and refrigerating devices. In 2019, the global MDI market had a volume of around 7,500 kilotons and is expected to further grow in the long term. In addition to chlorine, the plant will also produce caustic soda for the Iberian and European markets. Both chlorine and caustic soda are two indispensable basic chemicals for the chemical industry, and are also key raw materials for many other strategic sectors. 

Andrea Firenze, General Manager of Covestro in Spain, added: "The arrival of this plant allows us to significantly strengthen Covestro's MDI production in Tarragona. Being able to have our own, independent supply of chlorine gives us the ability to further increase the efficiency and competitiveness of our MDI plant. Moreover, the new plant also strengthens Tarragona’s position as the benchmark for chemistry in southern Europe, promotes the economic and social development of the area and both directly as well as indirectly generates new jobs. I would therefore like to sincerely thank all my colleagues who have contributed to the success of this project with their work."

Such achievement serves as a clear proof point of the company´s commitment towards circularity, leading the transition within the different segments served by Covestro not only in Brazil, but also in important countries such as Chile, Uruguay, Colombia, Argentina and Costa Rica, among others.

"This is an extremely important step for us as it makes the transformation towards the circular economy tangible, supporting our customers in achieving their sustainability goals and accelerating the substitution of fossil raw materials", says Andreas Stumpf, Managing Director of Covestro Brazil.

ISCC PLUS certification contributes to more sustainable production processes and markets, increasingly encouraging the participation of supply chain entities. At a local level, the certification can make fairer work relationships, more efficient processes and promote the reduction of greenhouse gas emissions and the use of fossil resources, while expanding the possibilities for the international market, mainly the European one.

"The Brazilian certification project of Covestro shows that it is possible to contribute to more sustainable production even in complex production chains with materials of different origins and destinations. It is another important step in promoting genuinely sustainable production chains", states Felipe Bottini, founding partner at Green Domus, ISCC recognized certification body in Brazil.

Customer focus: driving mindset change in Brazil

ISCC PLUS certification enables Covestro to supply attributed MDI and TDI, attributable to bio-based as well as bio-circular raw materials, to a variety of industries, for example for composites, flexible foams for mattresses and rigid foams for refrigerators, thus expanding Covestro's supply of more sustainable raw materials, which has a direct impact on reducing greenhouse gas emissions.

"For us, it is of utmost importance to be at the side of our customers and enhance their awareness about climate neutrality. Now, with such products, we can effectively contribute to their sustainability goals and reduction in carbon footprint", says André Borba, Marketing and Sales Manager for the Performance Materials segment in the Latin America region.

In order to reflect this commitment, and to make it even clearer how these products support its circular vision as well as the customers´ path towards sustainability, Covestro created a distinctive branding for products driving circularity.

Products carrying the CQ suffix are produced using partially alternative raw materials today – such as feedstocks from waste, biomass or renewable energy. These material solutions can be implemented via segregated or mass-balanced chains of custody. By activating multiple circular production pathways, we enable clients to increase their use of renewable resources, and lowering their overall environmental impact.

The range of solutions carrying CQ will constantly grow. The first products available are the climate neutral³ products Desmodur^® CQ 44V70L MS and Desmodur^® CQ 44V20L MS from Covestro, as well its Desmodur^® CQ 44V70L MB, Desmodur^® CQ 44V20L MB and Desmodur^® CQ T80 with a significantly improved carbon footprint. The abbreviation ‘CQ’ stands for circular intelligence. Together, C and Q underline how essential thought-leading, innovative solutions can drive circularity forward.

¹ ISCC ("International Sustainability and Carbon Certification") is an internationally recognized system for sustainability certification of biomass and bioenergy, among others. The standard covers all stages of the value chain and is widely used worldwide. ISCC PLUS includes further certification options for technical-chemical applications, among others, including plastics from biomass.   
² Biological and bio-circular attributed MDI and TDI are assigned biological raw materials as well as wastes and residues of biological origin based on a mathematical algorithm using the mass balance method.   
³ Carbon neutrality is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (Covestro gate), also known as cradle-to-gate assessment. The methodology of our life cycle assessment is based on ISO standards 14040 and 14044.

“We believe in the growth of the cast elastomers market and want to meet the increasing demand. With this new production plant, we achieve a significant improvement of our global infrastructure and strengthen our presence for high-performance elastomers in the Asia-Pacific region,” says Sucheta Govil, Chief Commercial Officer at Covestro. “This investment also allows us to better serve our customers, improve our customer service and it supports the growth of applications and industries with high-end performance requirements.”

“The start up of our Map Ta Phut plant is the latest step of several investments in our Elastomers business to support the Vulkollan^® brand,” explains Thomas Braig, Head of the Business Entity Elastomers. “We firmly believe in the strong potential of this historic and well-known brand and are prepared, with this investment, for its future growth and the development of its customers.”

“Our Map Ta Phut site in Thailand has been well prepared to grow and is now proud and ready to contribute to the Elastomers business while supporting Covestro's overall strategy to strengthen its Solutions & Specialties segment," added Dr. Timo Slawinski, Site Manager Map Ta Phut.

The new plant in Thailand now employs more than 25 people. The elastomers produced from the raw material are suitable for a diverse range of applications: from forklift wheels, roller coaster wheels to couplings and seals for the engineering industry, among many others. The product is one of the most powerful elastomers on the market. Its superior durability, stability and thereby lowered maintenance requirements are among the key features of the material and make it a material of choice for ever more customers and applications.

The largest import themed expo in the world, the CIIE gathers a myriad of companies from across industries every year. This is Covestro’s second appearance following its debut in 2021.

"The world is increasingly facing enormous challenges. It is in our hands to meet them and set the course for a green, smart and safe future. Many ideas, concepts and technologies are there, they now need to be realized with determination," says Dr. Markus Steilemann, CEO of Covestro. "At CIIE, we want to raise awareness for building a circular economy and for climate neutrality by presenting particularly innovative and sustainable material solutions. At the same time, we want to strengthen relationships with our partners in China and around the world."

A leading example of Covestro’s successful partnerships comes from Hong Kong-based Sinomax, a manufacturer of polyurethane-based comfort products, which will make the global debut of its first low-carbon mattress at the Covestro booth.

"We are honored to stage the world debut of our new low-carbon sleep system products together with Covestro at the CIIE," says Sinomax President Eric Cheung. "This marks a major step towards sustainable development at Sinomax Group, amid growing market demand for low-carbon products in China and around the globe. We look forward to further cooperating with Covestro on a global scale for more sustainable products."

The mattress uses bio-attributed mass-balanced TDI (toluylene diisocyanate), a key component for the production of flexible foams, purchased from Covestro. This can reduce CO₂ equivalent emissions by about 10 kilograms for a single mattress.

Materials with lower carbon footprint

Covestro offers renewable TDI, among other materials, using the mass-balanced method, under which alternative raw materials are allocated to the products as certified by ISCC PLUS. They uphold the same high quality as their fossil-based counterparts without customers having to change their processing operations, while enabling them to reduce CO₂ emissions.

Other solutions featuring the mass-balanced method at CIIE include low-carbon coatings applied to the wood structure on Covestro’s booth. The coatings, made by Chinese company Baichuan, are based on the Desmodur^® CQ hardener from Covestro. The hardener contains more than 30 percent of biomass according to ISCC PLUS and reduces CO₂ emissions by more than 20 percent from cradle to Covestro’s factory gate.

"We believe mass-balanced solutions, among other low-carbon materials, are crucial to support the sustainable development and climate-neutral future of various industries and society. But to broaden this impact, we rely on the strength of more partnerships, and that’s why we are here at the CIIE," says Covestro China President Holly Lei.

In another example, Covestro and Chinese premium smart EV brand HiPhi are deepening their partnership to create next-generation solutions to make mobility smarter and greener. Under a new agreement to be inked during the CIIE, an array of Covestro’s CO₂-reduced polycarbonates, coating and adhesive solutions are expected to be applied in HiPhi’s future models, enabling new functions while reducing their carbon footprint.

Broad portfolio to promote circular economy

Covestro will showcase its cutting-edge materials, solutions, technologies and collaborative ties at several exhibition areas: Future Mobility, Clean Energy, Green Building and Sustainable Living, on top of a Branding & Culture corner designed to improve visitor engagement.

"We look forward to further advancing our sustainable development agenda in China through advocacy and collaboration with our customers, partners and other key stakeholders here," Lei adds.

To learn more about Covestro’s solutions for a climate-neutral future at the CIIE, visit its booth, 3C3-01, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2022.

¹ Renewable TDI is produced using the mass balance approach using renewable feedstocks – from virgin biomass as well as biowaste and residuals – which are mathematically assigned to the product.

PU rigid foams with MDI provide very efficient thermal insulation in buildings and refrigeration equipment. The soft foams using TDI provide a lot of comfort in mattresses and upholstered furniture, as well as in car seats and shoes. And with these polyols, Covestro is now able to offer selective prepolymers for various adhesive applications. The introduced mass balance approach enables the gradual substitution of fossil-based raw materials by bio-circular alternatives, which further improves the sustainability in these applications.

Covestro produces the polyether polyols in Dormagen, Germany, using the mass-balanced precursor propylene oxide from the shared site with LyondellBasell in Maasvlakte, The Netherlands. There, the two partners produce propylene oxide and styrene monomer as part of a joint venture. Both of the above-mentioned sites are certified according to the internationally recognized ISCC PLUS standard.

"With the introduction of both main components for polyurethanes based on alternative raw materials, we have reached another important milestone on the road to climate neutrality," says Sucheta Govil, Chief Commercial Officer of Covestro. "We can now help customers in a variety of industries meet their climate goals and drive the transition to a circular economy. At the same time, we are reducing the CO₂ footprint in various value chains."

Customers can use the more sustainable polyether polyols and isocyanates as a drop-in solution, meaning the raw materials can be quickly and easily integrated into existing production processes without the need for technical modifications. The products offer the same good quality as their fossil-based counterparts and meet the demands from various industries looking for alternative raw materials. They can be easily distinguished from their fossil counterparts through the CQ suffix in the product name. CQ stands for Circular Intelligence and highlights Covestro´s products and initiatives around circularity.

 ¹ _{The more sustainable polyether polyol as well as the renewable TDI are produced with the help of the mass balance approach using renewable raw materials – from biowaste and plant residues – which are mathematically attributed to the product.}

² _{Climate neutrality is the result of an internal assessment of a partial product life-cycle from raw material extraction (cradle) to Covestro’s factory (gate), also known as the cradle-to-gate assessment. The methodology of our life cycle assessment, which has been critically reviewed by TÜV Rheinland, is based on ISO standards 14040 and 14044. The calculation takes into account the uptake of biogenic carbon. The calculation was based on preliminary data from the supply chain. No compensatory measures were applied.}

"These projects will contribute to the high-quality and sustainable development in China and beyond," said Holly Lei, President of Covestro China. "They will also add to the scale and strength of our Shanghai site, which will be playing a key role in the quest of Covestro to becoming operational climate neutral by 2035."

A leading supplier for sustainable solutions

The new plant for PUDs, as well as a further line for polyester resins, from which PUDs are produced, are due to be completed in 2024. PUDs are used in more environmentally compatible coatings and adhesives for a wide range of applications, including automotive, construction, furniture, footwear and packaging. For instance, Covestro’s Bayhydrol^® and Bayhytherm^® raw materials are used in basecoats for automotive OEM and refinish coatings, as well as in wood and furniture coatings and robust floor coatings, while adhesives formulated with Dispercoll^® U are used in furniture and shoe manufacturing as well as in the automotive industry. Independent of the investment of Covestro in Shanghai, its large portfolio of waterborne polyurethane coating raw materials based on PUDs for various applications also includes products of the Baybond^®, Impranil^®, NeoPac^® and NeoRez^® series. 

"With the new investment, we will be even better positioned to address the rising demand for more environmentally compatible coatings and adhesives across the globe," said Zhong Xiaobin, Senior Vice President of the Coatings and Adhesives segment of Covestro in the Asia Pacific region. "As one of the global leaders in this segment, we will continue to tap the trend where our customers turn to more sustainable waterborne systems with equally good properties to replace solvent-based products."

High performance elastomers to drive sustainable growth

The new facility for polyurethane elastomers, which are widely used in industries ranging from offshore wind to solar energy as well as material handling, is expected to become operational already in 2023. The market for these flexible and durable materials in China and the Asia-Pacific region is growing faster than both gross domestic product and downstream industries.

"The new facility for polyurethane elastomers will ensure that we have a strong capacity to meet the needs of our customers," said Simon Chen, Head of Covestro’s Elastomers segment in Asia Pacific. "Our Desmodur^® based polyurethane elastomers will serve a wider range of applications as they boast excellent performance, particularly in the field of sustainable energy."

Since 2001, Covestro has invested EUR 3.6 billion into building the Shanghai integrated site, which comprises 11 plants and is the company’s largest site in the world. In the past year, the Shanghai site obtained the ISCC PLUS mass balance certification, meaning it can supply customers with larger product volumes from renewably attributed raw materials.

The new MDI enables Pearl to help its downstream customers reduce their carbon footprint by offering a broader portfolio of more sustainable raw materials as part of its newly rebranded EcoPearl product range. The new MDI grades from Covestro can be used in numerous construction, cold chain and automotive applications.

Pearl is the first system house in the EMEA region to receive the carbon-neutral¹ MDI from its former joint venture partner and long-time supplier Covestro. The latter has already received ISCC-PLUS certification for five of its 16 main sites and is able to supply climate-neutral MDI from its sites in Uerdingen, Germany, and Caojing, China.

Following a comprehensive ISCC audit to trace the supply chain and assess raw material sustainability requirements, Pearl became the first local polyurethane systems house to be ISCC certified in March 2022, enabling it to verify the various sustainability credentials for its product formulations and raw materials used. The certification followed an internationally recognized five-step process and allows end users to measure the sustainability performance of the ISCC-certified products they use.

In the context of commercial building insulation, ISCC PLUS certification allows end users and tenants of such buildings constructed with Pearl-supplied insulation products to easily measure and verify the sustainability performance of the buildings they occupy. This is a factor that is becoming increasingly important to businesses as consumer interest in the environmental impact of companies grows.

"This mass-balanced carbon neutral MDI further enriches our broad portfolio focused on the circular economy and responds to the growing demand for more sustainable products," says Sucheta Govil, Chief Commercial Officer of Covestro. "By working with multipliers such as Pearl Polyurethane and helping a growing number of downstream users in various industries achieve their sustainability goals, together we are accelerating the transition to the circular economy." Covestro plans to further expand its portfolio of carbon-neutral products.

Martin Kruczinna, CEO of Pearl Polyurethane Systems, commented, "rigid polyurethane foam, as a superior insulating material, plays an important role in meeting the Paris Agreement to limit the rise in global temperature to 1.5 degrees Celsius at best. Just as Covestro is leading the way among PU raw material producers to achieve carbon neutrality by 2035, Pearl is acting as an agent of change in the PU systems industry, giving its customers a competitive advantage by helping them adapt to greener technologies and improve the thermal insulation performance of their products. The addition of carbon neutral¹ MDI-based solutions to our newly named EcoPearl product range helps our customers achieve their emission reduction and circular economy goals."

¹ _{Climate neutrality is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (Covestro gate), also known as cradle-to-gate assessment. The methodology of our life cycle assessment, which was critically reviewed by TÜV Rheinland, is based on ISO standards 14040 and ISO 14044. The calculation takes into account biogenic carbon sequestration based on preliminary data from the supply chain. No compensation measures were applied.}

This is reason enough for Covestro to further increase the sustainability and insulating performance of its foams and develop innovative solutions for more effective production. At the K 2022 plastics trade show, the company will present promising results that support its vision to become fully circular.

Climate-neutral raw material for insulation

For example, Covestro now offers one of the two main raw materials for PU rigid foam, methylene diphenyl diisocyanate (MDI), in a version that is climate-neutral¹ from the cradle to the factory gate: On balance, no CO₂ emissions are generated in the aforementioned part of the value-added cycle. This increase in sustainability is due to the use of alternative raw materials based on plant waste and residual oils, which are allocated to the products with the help of certified mass balancing according to ISCC PLUS. With such climate-neutral¹ solutions, Covestro helps its customers achieve their own sustainability goals and master the transition to a circular economy. The products can be incorporated into existing process technology at construction, refrigeration and automotive industry customers without any significant changes.

Small refrigerators with plenty of interior space

In the cold chain, too, rigid PU foam has been the insulating material of choice for decades to keep food from spoiling efficiently and permanently. In the future, it will be important to not only further increase the insulation performance, but also to have the largest possible interior space in which to store a lot of refrigerated goods, and yet limited external dimensions of the refrigerator. Here, PU vacuum insulation panels (VIPs) offer an advantageous solution: they take up little space but provide efficient insulation with low energy consumption and CO₂ emissions. Even at the end of their useful life, PU VIPs still reduce the carbon footprint: Thanks to their use, refrigerators are made from only a few different materials and can be recycled more easily.

More effective and sustainable production of insulation elements

For the production of rigid foam insulation boards and metal sandwich elements, customers have to spread a PU reaction mixture on a top layer. Covestro has developed an innovative technology using casting rakes that enables more uniform distribution of the liquid mixture, simplifying the production process but also increasing the quality of the insulation elements. Insulation Board Fastline (IBF) technology also reduces out-of-spec batches and production waste – waste that would otherwise have to be disposed of or recycled. The casting rakes can be easily integrated into the existing production.

Efficiently insulated windows

The efficient thermal insulation of doors and windows naturally makes another important contribution to reducing energy consumption and CO₂ emissions from buildings. While multi-pane windows made of insulating glass have proven themselves in practice, for a few years now, composite materials made of polyurethane resins in combination with glass fibers using pultrusion technology have been providing excellent insulation of window and door frames. They also give them good strength and fire resistance.

_{¹ Climate neutrality is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (Covestro gate), also known as cradle-to-gate assessment. The methodology of our life cycle assessment, which has been critically reviewed by TÜV Rheinland, is based on ISO standards 14040 and ISO 14044. The calculation takes into account biogenic carbon sequestration based on preliminary data from the supply chain. No compensatory measures were applied.}

The goal of a new collaboration with the Zurich-based bag company FREITAG is the unlimited recycling of truck tarps, based on thermoplastic polyurethanes (TPUs) from Covestro. At the end of their useful life, the tarps are to be recycled mainly chemically and used for new tarps or other products. It is important for the success of the project that the tarps are similarly robust, durable and water-repellent as the previous products. FREITAG expects it to be a few years before bags made from the tarps are mass-produced, but plans to put a first prototype on a truck as early as this year.

Sorting of plastics by type

At the K 2022 trade show, Covestro will present these and a number of other developments for the unmixed recycling of used plastics. The company’s focus to date has been on proven mechanical recycling, in which the plastic is chemically preserved, and more recent chemical recycling processes, in which the polymer molecules are broken down chemically. Other technologies of such raw material reprocessing – specifically enzymatic and pyrolytic – are under development.

Mechanical recycling is particularly suitable for polycarbonates. Numerous corresponding products from Covestro are already on the market, including polycarbonate blends for IT applications with up to 75 percent recycled material – besides products based on mass balanced raw materials. To facilitate recycling, the company is increasingly relying on monomaterial solutions for end products that feature simplified material separation. In addition, new plastic products are designed from the outset to be easier to recycle at the end of their useful life.

Chemical recycling on the rise

Polyurethanes (PU) and other thermoset products usually cannot be mechanically recycled. Chemical processes are the obvious choice here. Covestro has developed an innovative technology for recovering both core raw materials PU mattress foam as part of a research project with partners. These are polyols and the isocyanate TDI, which are used in the production of mattress foam. The precursor is recovered from the TDI, and both raw materials can be reused for the production of new foam after reprocessing. The results achieved to date are being tested in a pilot plant at the Leverkusen site. 

To drive the project forward and close recycling cycles, Covestro is cooperating with partners from the chemical and recycling industries. Together with Interseroh, an ALBA Group company, opportunities are to be developed for the collection and processing of the recyclables so that they can ultimately be supplied to Covestro for chemical recycling. Covestro is pursuing a similar goal in its cooperation with the French environmental protection organization Eco-mobilier, which specializes in the collection and recycling of old furniture.

Used PU rigid foams, which provided efficient thermal insulation for buildings and refrigeration equipment, should also be able to be broken down into their constituent parts again by means of chemolysis or even pyrolysis. This is the goal of the CIRCULAR FOAM research project with 22 industrial partners from nine countries, coordinated by Covestro. Over the next four years, experts from science, industry, and society want to develop a comprehensive solution model for the waste management and recycling of such foams.

Here, too, the aim is to recover both raw materials originally used – polyols and an amine used as a precursor for the isocyanate MDI. If the material cycle is successfully closed, up to one million metric tons of waste, 2.9 million metric tons of CO₂ emissions and 150 million euros in incineration costs could be saved in Europe every year from 2040.

"Mankind is facing enormous challenges. In addition to acute crises, we need to overcome long-term challenges such as protecting the climate, nature and resources and thus safeguarding our livelihoods," said CEO Dr. Markus Steilemann. "This can be achieved if business and society consistently orient themselves towards the circular economy. Plastics are indispensable on this long journey, and Covestro is pleased to contribute particularly sustainable new products and materials to this end, tailored to the customer needs of today and tomorrow. Together with our partners, this is how we intend to seize the immense opportunities for sustainable growth."

"Crafting Connections With You"

Under the motto "Crafting Connections With You", Covestro intends to establish new collaborations with customers and partners and strengthen existing ties at booth A 75 in Hall 6 at K 2022 from October 19 to 26, as well as on a digital platform. "Collaboration along key value chains in particular is of great importance for the vision of a full circular economy to succeed," said Dr. Andrea Maier-Richter, Global Head of the TPU Business Entity. "With our more sustainable developments, we support our customers and partners in facilitating their transition to the circular economy and achieving their own climate goals."

To make circular solutions in the product portfolio even more recognizable to customers in the future, Covestro has developed the "CQ" concept. The brand suffix stands for "Circular Intelligence" and indicates the alternative raw material base for the company's products if it is at least 25 percent. Among the first "CQ" products is Desmodur^®CQ. Polyurethane foams based on Desmodur^®CQ are used, for example, in upholstered furniture, mattresses and thermal insulation.

Moving away from fossil resources

Covestro primarily uses mass-balanced, renewable precursors and plastic waste as alternative raw materials, as well as green electricity. To realize its vision of a circular economy and achieve its ambitious climate targets, the company is also focusing on the future supply of "green" hydrogen and the development of innovative recycling technologies.

All these measures help conserve fossil resources and avoid CO₂ emissions. In the long term, Covestro aims to offer all its products in a climate-neutral¹ version. By 2030, the company plans to invest around one billion euros in circular economy projects. To achieve net zero emissions, Covestro also expects to invest between EUR 250 million and EUR 600 million by 2030.

The high-performance plastic polycarbonate and the important polyurethane (PU) raw material methylene diphenyl diisocyanate (MDI) are already available in larger quantities as climate-neutral products. Like the renewable PU raw material toluene diisocyanate (TDI), they are manufactured using renewable² raw materials such as new biomass and biowaste and residual materials, which are allocated to the products by calculation using the mass balance approach. According to a common calculation model¹, no net CO₂ emissions are generated during production from the cradle to the factory gate.

For its own raw material supply, Covestro cooperates with a number of industrial partners who provide renewable precursors such as mass-balanced acetone, phenol and benzene. Suppliers such as Borealis, Total, Mitsui Chemicals and Mitsui & Co. produce these raw materials at sites certified to the internationally recognized ISCC PLUS standard. At the same time, Covestro is gradually converting its production sites to this standard, which is already the case in Leverkusen, Dormagen, Krefeld-Uerdingen, Antwerp and Shanghai.

Most recently, Covestro announced a collaboration with Neste and South Korean petrochemical company SK geo centric to supply mass-balanced benzene for its MDI production in China. MDI is an important raw material for rigid PU foam, which provides efficient insulation for buildings and the cold chain. Certified polycarbonate, in turn, plays a role in the automotive, electrical and electronics, and medical industries, among others. And TDI is a precursor for PU flexible foam, which is used to make mattresses and upholstered furniture.

Covestro has also signed contracts with energy suppliers such as Ørsted, EnBW, ENGIE, Datang Wuzhong New Energy and others to supply sites in Germany, Belgium and China with electricity from renewable sources.

Innovative technologies for chemical recycling

Hermann-Josef Dörholt, Global Head of the Performance Materials segment, emphasized the great importance of recycling technologies in order to really close loops: "Covestro is taking a committed approach here: using various approaches, we can specifically recover the raw materials we need for the production of our plastics. In addition to the established mechanical recycling of polycarbonate and thermoplastic polyurethane, we are focusing primarily on chemical recycling for this purpose." The aim, he says, is to recycle materials completely in order to save fossil raw materials and CO₂ emissions, while at the same time offering recycled products in virgin material quality.

As examples, Dörholt cites innovative processes for the chemical recycling of mattress foam waste and used rigid PU foam. Together with partners, Covestro has developed a process to chemically recover the two main components from PU mattress foam: the polyol and the precursor to the isocyanate TDI used. The results of the tests conducted to date are promising and are currently being tested in a pilot plant at the Leverkusen site. The project is now to be extended to the industrial processing of flexible foams.

Covestro is also coordinating the EU project CIRCULAR FOAM with 22 partners from nine countries, which is dedicated to the chemical reprocessing of rigid polyurethane foam from building insulation materials and used refrigeration equipment. The products make an important contribution to saving CO₂ emissions and reduced energy consumption, but recycling processes and systematic waste management have been lacking until now. The project aims to save up to one million tons of waste and 2.9 million tons of CO₂ emissions annually in Europe by 2040.

_{¹ This climate neutrality is the result of an internal assessment of part of the product life cycle, from raw material extraction (cradle) to the factory gate of covestro. It is also referred to as "cradle-to-gate" assessment.}

_{² Renewable TDI is produced using the mass balance approach using renewable feedstocks – from virgin biomass as well as biowaste and residuals – which are mathematically assigned to the product.}

SK geo centric will process this feedstock into benzene at the company’s facilities in South Korea and supply it to Covestro to use as raw material for methylene diphenyl diisocyanate (MDI) at its site in Shanghai, China. MDI is a key raw material for the manufacture of rigid polyurethane foam, which is a well-proven insulating material for buildings and used in the cold chain helping to save CO₂ emissions and reduce energy consumption during its product life.

The cooperation marks the start of possible future collaborations between the three companies, aiming at replacing fossil feedstocks by more sustainable ones in the production of polymers and chemicals in the APAC region and beyond.

"With renewable solutions available, we are now entering the phase of scaling up their usage in the chemical industry," says Mercedes Alonso, Executive Vice President Renewable Polymers and Chemicals at Neste. "This will be crucial in replacing the vast amounts of fossil resources the industry is currently depending on. To make this ramp-up a success, we’ll need to establish collaborations along the value chain – and this one between three sustainability-minded partners is a prime example of how the industry can do just that."

Replacing the common crude oil-based fossil feedstock with Neste RE provides a significant reduction in greenhouse gas (GHG) emissions, thereby improving the carbon footprint of the polyurethane raw materials produced by Covestro and of downstream industries. Neste RE is produced with renewable raw materials such as waste and residue oils and fats.

"I am much pleased that through this collaboration we continue to ramp up the market for sustainable alternative materials. This enables us to supply our customers in Asia-Pacific with more sustainable MDI based on mass-balanced raw materials," says Sucheta Govil, Chief Commercial Officer of Covestro. "Using such materials is attractive because it will also help them achieve their climate goals. Another core benefit of this line of products is that it is a technical drop-in solution that our customers can use immediately without a major changeover in their plants."

"We are delighted to ship and export our first renewable Benzene produced with 100 percent renewable Neste RE feedstock," says Woohyuk-Choi, Vice President of SK geo centric’s Aromatic Business Unit. "SK geo centric will actively work with Covestro and Neste as we mark the first collaboration of this kind in the Asia-Pacific region. We remain committed to expanding this cooperation."

Under the strategy of "Green for Better Life", SK geo centric announced its ambitious target to become "Net-Zero" before 2050. To fulfill its responsibility, the company will drive its business transformation by expanding its high-quality renewable products portfolio. SK geo centric will respond to increasing global demands in the market by leveraging the strong synergies between collaboration partners.

Covestro intends to focus entirely on the Circular Economy. The company is driving the development of innovative and resource-saving processes to make its products recyclable to meet this goal. That is why Covestro intends to offer more material solutions based on sustainability and circularity in the markets in which it is active. Covestro's own technological development is focused on four recycling approaches. In addition to mechanical recycling, which is already used for the high-performance plastic polycarbonate and thermoplastic polyurethane (TPU), Covestro is developing chemical recycling processes: These include chemolysis, smart pyrolysis and enzymatic recycling. The aim of these processes is to produce recycled plastics in virgin material quality while significantly reducing the environmental footprint compared to the conventional fossil-based production of polymers and polymer raw materials. Covestro applies its core competence in chemistry to process development.

"We see ourselves as the driving force behind the Circular Economy industry that is currently being developed, where the chemical and waste management industries will have to grow closer together in perspective and synergies will have to be created," explains Markus Steilemann, Chairman of the Board of Covestro. "We are moving forward here with vigor for the entire industry: with various recycling approaches, we can systematically recover the different raw materials we need for the production of our plastics. Our goal is to fully circularize materials from end-of-life products to save fossil raw materials and greenhouse gas emissions, while offering recycled high-performance materials in virgin quality." The company plans to invest around one billion Euro in Circular Economy projects by 2030. In Leverkusen, Covestro already operates a pilot plant for the chemical recycling of flexible polyurethane foams.

In addition, Covestro will showcase how circular solutions in the product portfolio can be made even more visible to customers at IFAT in Munich. With the "CQ" concept, in the future Covestro will highlight the alternative raw material base in products if it is at least 25 percent. "CQ" here stands for Circular Intelligence. Among the first "CQ" products is Desmodur^®CQ. Polyurethanes based on Desmodur^®CQ are deployed, for example, in upholstered furniture, mattresses and thermal insulation. They are used, for example, as coatings for cars or household appliances.

 "In order to take meaningful climate protection measures, we need a change, a paradigm shift, for us, our customers and everyone else in the entire value chain. At the same time, the benefits must be clear in the application of such solutions. The chemical industry must fundamentally change as a central part of the value chain - toward alternative raw materials and renewable energies," says Sucheta Govil, Chief Commercial Officer at Covestro. "We have set ambitious targets to make our production fully circular and ultimately independent of fossil resources. In doing so, we are supporting a wide range of industries to reduce the carbon footprint of their own products," Govil said.

Cooperations provide contribution to full Circular Economy

New recycling processes and cooperation with partners from industry and research are making an important contribution to achieving full circularity. For example, Covestro is coordinating the EU project "CIRCULAR FOAM" with 22 partners from nine countries. The aim of the project is to develop innovative chemical recycling processes for rigid polyurethane foams. As an insulating material, rigid polyurethane foams contribute to the energy efficiency of refrigerators and buildings - but coordinated waste management and suitable recycling processes are still lacking for a sustainable life cycle. Chemical recycling could save up to one million tons of waste and 2.9 million tons of CO₂ annually from 2040.

Markus Steilemann and Sucheta Govil at IFAT

To kick off IFAT on Monday, May 30, 2022, Sucheta Govil will be a guest on the show's opening session. The topic will be the role of environmental technologies for a more sustainable future. Participants will include founder Mikela Druckman, an expert on AI in recycling and a member of the WEF Global Future Council; Prof. Dr. Erich Zahn, co-author of the Club of Rome report "The Limits to Growth"; Dr. Johannes Kirchhoff, Board of Management of the Circular Economy Initiative from the Federation of German Industries; and Ren Xiaoyuan, (UNEP) Young Champions of the Earth 2020 and founder of the water information network MyH2O.

CEO Markus Steilemann will discuss the topic "Global Value Creation in the Crisis? The Circular Economy as Europe's Response" on a BDI panel on Tuesday, May 31, at 2:15 p.m. with Delara Burkhardt, environmental policy spokeswoman for the Socialists and Democrats delegation in the European Parliament, Dr. Christoph Epping, head of the Circular Economy subdivision at the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, and Wolfgang Niedermark, member of the BDI's Board of Management. On Wednesday, June 1, Markus Steilemann will give an introduction at 12:15 p.m. to the panel discussion "Chemistry for circular mobility: Chemical recycling as a building block of circular value creation for automotive?" with experts from Audi, Covestro and TU Dortmund University.

Covestro at IFAT 2022 in Munich, Germany

• DGAW booth (Hall/Booth: A6 125/224) and VCI booth (Hall/Booth: A6 231)
• Monday, 30 May, 11:50 a.m. - 1 p.m.: Opening panel "How to create change?" - From activism and politics to environmental solutions and impacts" with Sucheta Govil (Forum Water Hall C3. 139/238)
• Tuesday, May 31, 2:15 p.m., (Hall C6, Room C62a, BDI Initiative Circular Economy), and Wednesday, June 1, 2022 (12:15 p.m., Hall A5 | 317/416 | Waste / Secondary Materials Forum): Markus Steilemann visits IFAT

The new capacity is intended to meet the growing global demand for multilayer TPU Films. They are used in automotive interiors and construction, among other applications. Breathable, water-impermeable specialty films have also proven their worth in wound care and outdoor clothing. The new facilities are scheduled for completion as early as the end of 2023.

"With this capacity expansion, we are strengthening our Bomlitz site and our position as a leading supplier of technical specialty films," said Dr. Klaus Schäfer, Chief Technology Officer of Covestro, at the groundbreaking ceremony. "At the same time, we are investing in promising technologies and applications and creating new jobs."

For Aleta Richards, global head of the Specialty Films segment, the expansion offers opportunities to respond even better to individual customer needs and offer more sustainable products. "For some time now, we have also been developing customer-specific solutions with films made from alternative raw materials, as we are also seeing increasing demand in this area. The development and production of partially bio-based products is therefore to become a new focus at the Bomlitz site."

Covestro is fully geared toward the circular economy and aims to become climate-neutral by 2035. To this end, the Bomlitz site plans to switch its energy supply completely to green electricity starting this year.

Epurex Films is one of three Covestro competence centers for specialty films in Germany. The other two centers in Leverkusen and Dormagen are focused on research, production and application of polycarbonate films.

More than 50 years of manufacturing experience of Covestro have also played a key role for this development. Going forward, solutions sourced from sustainable materials will be a key component of their overall portfolio. Sustainable coating resins represent an attractive growth market that aligns with the ultimate goal of the company to move to a fully circular economy, meeting the world’s materials and coatings needs while reducing reliance on fossil fuels. Covestro is excited to collaborate with its customers on the journey to the circular economy as new material solutions transform urbanization, mobility, and their impact on climate change.

Alternative raw materials made using biotechnology

One of the most exciting results is the fruit of work of the company with pioneering biotech company Genomatica to successfully produce the first significant volumes of a plant based version of HMDA (hexamethylene diamine). HMDA is a key precursor for several coatings, adhesives, and a widely used type of nylon (nylon-6,6). 2 million tons of HMDA are used each year, but until now it has been manufactured exclusively from fossil feedstocks. This new process is expected to be able to produce ton-quantities of high-quality material in the near future, helping the automotive, construction, furniture, and textile industries become that much more sustainable going forward.

"Our partnership on this innovative technology allows us to significantly reduce our dependence on fossil feedstocks," said Martin Vlak, Head of Sales & Market Development – North America Coatings & Adhesives at Covestro. "With a purely plant-based HMDA, we can significantly advance our corporate objective of CO₂-neutral production."

Several examples of Covestro’s sustainable products are on display in their booth (#2529). Covestro will be showing off Desmodur^® eco N 7300, an isocyanate clearcoat hardener whose carbon content is 70 percent sourced from biomass instead of fossil fuels. This sourcing reduces the carbon footprint of the hardener by around 30 percent, compared to conventional solutions using the same application process, with no compromise in performance or quality.

Partially bio-based resin for high-traffic flooring

A third product, Decovery^®, is an up to 52 percent partially plant-based flooring resin. Covestro has long experience in resin technology for flooring. Their engineers know better than anyone how traditional bio-based paints have struggled to meet the tough criteria required for high-traffic flooring. Extensive testing has shown that Decovery^® has equal performance in durability, chemical resistance and wear resistance when compared with current fossil-based products in the market.

"The emerging line of sustainable and plant-based products of Covestro is the result of our long-term goal of becoming the leading provider of sustainable coating solutions," says Vlak. "Markets are increasingly asking for more environmentally compliant products based on renewable raw materials without compromising functionality. But it’s about more than growth from a margin perspective. It’s about growing sustainably with the right kind of product innovation that brings us to carbon-neutral production. A truly circular economy is within our reach if we remain committed to this level of focus and innovation."

According to a common calculation model¹, on balance no CO₂ emissions are generated in the aforementioned part of the value-added cycle. The climate neutral MDI and its precursors are manufactured at the ISCC PLUS-certified Covestro sites in Krefeld-Uerdingen, Antwerp and Shanghai.

"With the launch of our climate neutral MDI, we are now further expanding our portfolio of climate neutral products," says Sucheta Govil, Chief Commercial Officer of Covestro. "I am pleased that this will enable us to even better support our customers in large parts of the world in meeting their own sustainability goals and transitioning to a circular economy." Only last December, the company announced the launch of its climate-neutral polycarbonate.

Hermann-Josef Dörholt, Head of the Performance Materials segment, adds: "Climate neutral products are an important factor in achieving our sustainability goals. Our climate neutral MDI has another major advantage: it is a drop-in solution – so our customers can use it immediately in their production without any changeover and without compromising on quality."

Even more sustainable building insulation

This is the case, for example, in building insulation. MDI is an indispensable raw material for the production of polyurethane (PU) insulation boards and sandwich panels, among other products. These have proven their value for many years as highly efficient elements in the thermal insulation of buildings. The heating or cooling requirements of buildings can be reduced by up to 70 percent through the use of PU insulation. This saves CO₂ emissions and is good for residents' wallets. Because PU insulation elements can therefore be designed thinner to achieve good insulation performance already, they save resources and make more usable space accessible than other insulation materials.

In addition to the good thermal insulation properties of PU insulating materials, Covestro's climate neutral MDI now provides a further sustainability benefit: It even helps reduce embodied carbon and energy consumption over the life cycle of a building. The use of PU insulating materials made from it in new buildings as well as in the renovation of older real estate can thus make an important contribution to the responsible use of primary resources and to significantly reducing CO₂ emissions.

"I am very pleased that we can now offer our customers even more certified mass-balanced products and thus help them even better to achieve their sustainability goals and drive the transition to a circular economy," says Sucheta Govil, Chief Commercial Officer of Covestro. "In doing so, we are also supporting the use of alternative raw materials and reducing CO₂ emissions along the value chains."

Dr. Klaus Schäfer, Chief Technology Officer at Covestro, adds, "The raw materials we use for these products meet the high sustainability requirements of the ISCC Plus standard all the way back through the supply chain. That's why we want to make greater use of alternative raw materials such as these renewably attributed precursors in our production. In addition to the three German sites, also our plants in Antwerp and Shanghai are already ISCC Plus certified, with more sites to follow."

In the mass balance approach, bio-based or recycled raw materials – in this case reprocessed residual materials – are fed in at an early stage of raw material extraction and mathematically attributed to the finished products. This saves fossil raw materials and reduces greenhouse gas emissions, while the quality of the mass-balanced products remains the same compared to purely fossil-based ones. Manufacturers can continue to use their proven formulations, equipment and processes.

ISCC ("International Sustainability and Carbon Certification") is an internationally recognized system for sustainability certification of biomass and bioenergy, among others. The standard covers all stages of the value chain and is widely used worldwide. ISCC Plus includes further certification options for technical-chemical applications, among others, including plastics from biomass.

HMDA, with a worldwide market of 2 million tons per year, is a key ingredient for a widely-used type of nylon (nylon-6,6), as well as an important component for raw materials for coatings and adhesives from Covestro. Up to now, HMDA has been manufactured from fossil feedstocks. Coatings and adhesives can be produced more sustainably thanks to bio-based HMDA, made from renewable feedstocks. Areas of application include automotive, construction, furniture, textiles and fibers.

Teams from Genomatica and Covestro have been working together to develop a commercial process technology for bio-based HMDA. The companies expect to produce ton quantities of high-quality material over the course of multiple production campaigns. Both partners are already processing and testing material from their initial production campaigns, and the resulting bio-HMDA is of high purity and quality. The companies plan to advance the program to full commercial scale, and Covestro has secured an option from Genomatica to license the resulting integrated GENO™ HMD process technology for commercial production.

Genomatica develops widely-used ingredients and materials using biotechnology and renewable, plant-based feedstocks rather than fossil feedstocks and their associated extractive processing methods. These materials are used by brands and their suppliers in popular goods ranging from apparel to cosmetics. Covestro brings extensive know-how in the field of research, chemical process technology and application development. The cooperation for the development of alternative raw materials based on biotechnology advances Covestro’s global program to achieve the circular economy.

Covestro established an R&D Competence Center for biotechnology to further strengthen its overall know-how in this field. Bio-based raw materials and biotechnology have also been identified as one of five focus areas at Covestro´s Venture Capital (COVeC) approach.

"The increased use of alternative raw materials, including the utilization of biotechnology, is an important pillar of our approach to fully embrace the circular economy and help make it a global guiding principle," says Covestro CEO Dr. Markus Steilemann. "Our program with Genomatica, which complements our internal R&D, is one of our largest external funding of biotechnology R&D to date, and underscores both the field’s importance to Covestro and the results it can deliver."

Replacing fossil-based raw materials

"This program is of great importance to us, because markets are increasingly asking for more environmentally compliant products based on renewable raw materials, which are just as powerful as their fossil-based alternatives," says Dr. Thorsten Dreier, global head of the Covestro business entity Coatings & Adhesives. "We can reduce this dependence on fossil feedstocks with innovative technology and our partnership. With a purely plant-based HMDA, we can significantly advance our corporate objective of CO₂-neutral production."

"Genomatica is committed to delivering a portfolio of sustainable materials that can help any brand reduce the carbon footprint of its products while maintaining the performance customers count on," said Christophe Schilling, Genomatica CEO. "Covestro is a valued partner that is playing a leading role in improving the environmental impact of many of today’s most prevalent materials. Together, we are taking an important step to reduce greenhouse gas emissions for a broad range of products we use in daily life."

About HMDA:

• Hexamethylene diamine is a chemical raw material used to create materials ranging from nylon to coatings.
• The HMDA market was 2 million tons in 2021, nearly all of which is currently produced from fossil fuels. HMDA is a key ingredient in the USD 6.4 billion market for nylon-6,6.
• Each year, the automotive market uses 500,000 tons of polyurethane coating based on HMDA.

Across the decorative coatings market, painters and consumers are increasingly seeking longer-lasting exterior coating systems. Through proprietary painter and consumer market research, Covestro found that adhesion and durability are key issues for painters in exterior paints. Specifically, as the use of multiple substrates becomes more common, painters increasingly need paints to deliver stronger multi-substrate adhesion. At the same time, as the global climate crisis becomes increasingly severe, exterior coatings are more vulnerable than ever to cracking under extreme weather conditions, which cause surfaces to contract and expand more severely. As a result, coatings now need to be more flexible to reach the required levels of durability. In response to the climate crisis, there is also growing demand from end-users and governments for more environmentally friendly coatings with enhanced bio-based content.

To enable its customers to meet both these performance and environmental needs, Covestro has developed Decovery® SP-8310: an acrylic resin designed to formulate easily into multi-purpose paints with up to 37 percent bio-based content. The resin’s combination of UV- and water-resistance with low dirt pick-up gives it excellent long-term outdoor durability, making it well suited to architectural and industrial applications. And its broad adhesion profile means Decovery® SP-8310 is also suitable for a wider range of substrates and application areas. The solution also delivers good water vapor permeability and high elongation, enabling long-lasting paint systems with high breathability and elasticity.

Thanks to its 37 percent bio-based content (verified by ¹⁴C analysis), Decovery® SP-8310 can enable a carbon footprint reduction of up to 8 percent compared with non-bio-based water-based alternatives. Taking the decorative wood coating market’s yearly consumption into account, this impact is equivalent to that of one million football fields of forest. In this way, Decovery® SP-8310 opens new possibilities for longer-lasting exterior coatings with enhanced bio-based content, as well as for a safer, more sustainable coatings industry.

Gerjan van Laar, Marketing Manager Architectural: "I’m delighted to be launching Decovery® SP-8310 – a new-generation exterior solution. By addressing the market need for both improved outdoor durability and enhanced bio-based content, this resin will enable our customers to develop future-proof products, accelerate their growth, and improve their environmental impact. In line with our unique approach to decorative-market innovation, we’ll continue investigating these needs and developing solutions to meet them, helping the coatings industry to accelerate both its performance and sustainability."

To find out more about Decovery® SP-8310, please visit our webpage.

"With our broad portfolio focused on the circular economy in various industries, we are strategically well positioned to support China's sustainable development, particularly the country's ambitions to become carbon neutral," said Dr. Markus Steilemann, Covestro's CEO. "Our vision to become fully circular is in line with China's megatrends, as we recognize that China will play a key role in the transition to a circular economy."

Asia debut of mass-balanced MDI and polycarbonate

A key focus of Covestro's presence at CIIE is the use of alternative raw materials. This includes the Asian debut of two ISCC PLUS-certified mass-balanced products with a lower carbon footprint: these are MDI – a key raw material for polyurethanes (PU) – and the high-performance plastic polycarbonate, with imported raw materials. Both contain a significant proportion of alternative raw materials, including plant waste, residual fats and vegetable oils, which partially replace fossil resources. And both are used in a wide range of applications: polyurethanes in insulation, upholstered furniture and automotive manufacturing; polycarbonates in the electronics, automotive and healthcare industries. Covestro's mass-balanced products help make these end-use applications more sustainable, supporting the circular economy and, in some cases, climate neutrality.

Portfolio with diverse applications to enable circular economy

At CIIE, Covestro will be presenting even more technologies, products and solutions to this end. Here are a few examples:

• The company has developed a new technology for recycling flexible foam from polyurethane mattresses that enables the recovery of both key raw materials. This allows the carbon footprint to be reduced along the entire value chain for PU mattresses.
• Covestro is exhibiting its Triturn® CO₂ technology, which enables carbon dioxide to be reused as a valuable alternative raw material in polyol production, replacing up to 20 percent of fossil feedstock. It can be leveraged for many different types of applications and industries, such as flexible foam for mattresses and binders for sports flooring, as an answer to address consumer demands and the rising environmental awareness.
• In Electronics & Electrical, exhibits ranging from 5G infrastructure to smart devices show how Covestro's low carbon footprint material solutions can enable a new era of smart connectivity. The company's portfolio includes polycarbonates with high post-consumer recycled content and with mass-balanced renewable raw materials that can reduce carbon footprints by up to 80 percent.
• Renewable energy highlights include polyurethane resins that enable lighter wind rotor blades and improve the efficiency of their production, and various other material solutions for effective expansion of this renewable energy.
• In the green building sector, Covestro brings its polyurethane solutions for energy-saving pultrusion windows and as insulating foams for buildings, as well as partially bio-based polyurethane coatings for wood furniture.

To learn more about Covestro's solutions for a carbon-neutral future at CIIE, visit Covestro's booth, number 3B5-005, at the National Exhibition and Convention Center (Shanghai) from November 5-10, 2021.

Across the global decorative coatings industry, there is now unprecedented demand – from regulatory bodies, professional painters and consumers alike – for more sustainable products that protect health and safety while still driving functionality and efficiency. In fact, according to a recent Paint Monitor report, environmentally compatible paints are now the number-one desired innovation among painters in the EMEA region. And, with the decorative industry changing rapidly, it’s increasingly important for paint manufacturers to differentiate themselves by meeting these demands.

Covestro’s ‘Decorative House of resins’ strategy aims to address these requirements through three key pillars: proprietary market insights, its advanced resin technology toolbox, and its frontrunning position in partially bio-based innovation. The organization’s latest initiative – known as ‘A natural home to create more sustainable paints’ – focuses specifically on this last pillar and the plant-based family of Decovery^® resins, which have a bio-based content of up to 52 percent, verified to C14 standards.

In particular, to further drive the decorative market’s adoption of bio-based solutions, Covestro is expanding its Decovery^® family of resins, which will open new sustainable horizons for the decorative coatings market. Together with additional services such as technical advice, sustainability dialog workshops, and marketing support, these solutions will enable Covestro’s customers to deliver a wider range of coatings that protect the planet without compromising performance.

Gerjan van Laar, Marketing Manager Architectural: "I’m thrilled to be introducing ‘A natural home to create more sustainable paints’ and launching our latest Decovery^® innovations! By expanding our range of more sustainable, safer, high-performance partially bio-based solutions that meet the needs of the decorative coatings market, we’re helping our customers differentiate themselves while making a positive impact on our industry. More than ever, for paint manufacturers, the switch to bio-based decorative coatings is within reach!"

"For us, CIRCULAR FOAM is an additional lighthouse project with which we are advancing the realization of the circular economy and taking decisive steps toward a sustainable future," explains Dr. Markus Steilemann, CEO of Covestro. “An important key to this is the development of innovative recycling technologies for as many types of plastic as possible. The chemical recycling of rigid polyurethane foam will be an important link in this chain.”

Chemical recycling is paving the way to a circular economy

Chemical recycling enables the reuse of materials which, at the end of their life cycle, cannot be re-introduced into the material cycle by mechanical recycling due to their properties. This also includes PU rigid foams from refrigerators and buildings. Today, these materials are incinerated for energy recovery. In this process, the raw materials used are lost and high CO₂ emissions are produced.

Thanks to the CIRCULAR FOAM project, this is set to change. Under the leadership of Covestro, the innovation project is investigating and developing two possible recycling paths for PU rigid foams: chemolysis and smart pyrolysis. The aim in developing the two new processes is to obtain polyols and amines as raw materials for the production of PU rigid foams in as high a quality as possible and thus enable their reuse.

To achieve this, Covestro is working closely with RWTH Aachen University and its CAT Catalytic Center, ETH Zurich, BioBTX and the University of Groningen. The project will also explore how the two processes can be transferred to industrial use as quickly as possible. Covestro had previously already developed a chemical recycling process for flexible foams from mattresses and successfully implemented it on a pilot scale in early 2021.

Material cycles pave the way to a sustainable future

One of the preconditions for the recycling of PU rigid foams in the EU is the Europe-wide systematic collection, disassembly and sorting of the material at the end of its useful life. There is significant potential for improvement in this area, as less than half of all discarded refrigerators in Europe are collected to date. Optimizing the product formulation for rigid foam can also promote better recycling.

Covestro will collaborate in all these areas. "We are excited about bringing our expertise in application development, digital R&D and chemical recycling to the project, which will provide an impetus for a new, pan-European circular ecosystem for rigid polyurethane foams," explains Dr. Torsten Heinemann, Head of Group Innovation at Covestro.

The CIRCULAR FOAM project therefore represents a further key building block in Covestro's long-term strategic program to fully align the company to the circular economy. The company only announced at the end of September that it would be investing around one billion euros in projects specifically aimed at circular economy over the next ten years.

Further links:

http://www.circular-foam.eu

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 101036854

With the environmental impact of fossil-based products becoming increasingly clear, recent years have seen an unprecedented demand for sustainable products and brands. Across the global paints and coatings industry, regulatory bodies are setting higher and higher sustainability and transparency standards, while consumers are increasingly applying their spending power to choosing eco-friendly solutions. For example, a recent European Painter Insight Monitor¹ report found that environmentally friendly paints are now the number-one desired innovation among painters, with 36 percent of France’s professional painters selecting this as a desired innovation/ranking this as their most desired innovation.

Market insights from artificial intelligence and Big Data

To address these changes in the market landscape and help shape more sustainable high-performance paints and coatings industries, Covestro is launching a new plant-powered approach marked by transparency, dialogue and collaboration – called ‘Paint with Nature’. Leveraging its proprietary market insights gained through artificial intelligence and big data, Covestro will work closely with partners across the value chain to provide education and support on biobased raw materials. Additionally, it will implement a ‘Sign the Sustainability Pledge’ initiative.

Through these initiatives and its Decovery® family of resins, whose biobased content is verified to C14 standards, Covestro will drive awareness of biobased solutions as an alternative to fossil-based products and accelerate their adoption across the paints and coatings industries.

Tim Gratzke, Marketing Manager Decovery®: “At Covestro, we are very excited and proud to be launching a new approach to further drive plant-based resins for paints and coatings, and better connect the needs of end-users and manufacturers to environmentally friendly technologies. Using our market leadership in biobased solutions, we’ll be able to provide education and support to accelerate our customers’ sustainability journeys. This will help them to better address market needs, as well as protect the environment.”

No compromise on performance

He continues, “More than ever, the transition from fossil-based paints and coatings to biobased ones is within reach and involves no compromise on functional performance. And we’re committed to continuing to push the boundaries on sustainability – as such, a new, exciting plant-powered paints and coatings age awaits!”

To learn more about Decovery® paints and coatings, and Covestro’s new approach, please visit the dedicated landing page here: Paint with Nature

¹ https://www.usp-mc.nl/files/painter-insight-monitor-2020-report-impression.pdf

In the cross-sectoral project funded by the European Union (grant agreement no. 768919 ), 14 industrial and academic partners from seven countries investigated new technologies that allow converting gas streams from steel mills into polyurethane products. The consortium led by materials manufacturer Covestro investigated how carbon monoxide (CO) and -dioxide (CO₂) containing blast furnace gas from steel production can be used as a carbon source for polyols. Polyols are intermediates and key components of polyurethane-based insulation materials and coatings, and are typically derived from crude oil.

The conclusion: Ecologically as well as economically, the new technology was evaluated as beneficial. "Supposed waste gas can be efficiently used once again as a valuable material and fed back into the cycle: The results of the research project have the potential to revolutionize production processes. This is a great discovery and a significant milestone on the road to a circular economy. Alternative raw materials become a reality," says Dr. Markus Steilemann, CEO of Covestro.

New polyol can be produced from gas mixture

A key achievement of Carbon4PUR is the identification of novel catalysts that enable the production of new polyols. With the help of these catalysts, the research partners succeeded in producing polyols using carbon monoxide (CO) from gas mixtures at a laboratory scale. In the new intermediate, 27 percent CO could be bound.

Insights gained from Carbon4PUR could also have implications for the CO₂ technology developed by Covestro. The sustainable polyol cardyon® developed on this basis contains up to 20 percent carbon dioxide instead of crude oil and is used, for example, in the production of flexible polyurethane foam in mattresses, binders for sports flooring or elastic fibers. With the new knowledge the technology could possibly be extended to the use of CO₂-containing gas mixtures such as blast furnace gas from steel production.

Findings as groundwork for future research & development

As part of the research project, Carbon4PUR technology was successfully upscaled to a semi-industrial scale. First examples of applications have already been demonstrated by the Insulation business line of the Recticel Group (Belgium) and the chemical manufacturer Megara Resins (Greece), who have further advanced their product development on the basis of the research results. "We demonstrated that polyols based on the new Carbon4PUR technology can be successfully incorporated into rigid foams to make insulation boards with technical specifications comparable to the market reference," said Dr. Geert Snellings, Innovation Manager at Recticel. Megara Resins has succeeded in incorporating the new polyols into waterborne polyurethane dispersions for wood coatings.

In addition, as part of Carbon4PUR, RWTH Aachen University has investigated the acceptance of carbon capture and utilization (CCU) using the example of insulation boards in a scientific study. The term stands for the capture of carbon dioxide and its use for further chemical processes. "We found that the public still knows far too little about CCU technology. However, when end users receive adequate information, a generally positive attitude emerges," explains Prof. Dr. Martina Ziefle, Chair of Communications Science at RWTH Aachen University. "Nevertheless, there is still a remaining need to increase awareness of CCU to strengthen the technology’s and product’s acceptance."

Research alliance can create jobs

Carbon4PUR is a unique example of cooperation between partners from the entire value chain. As such, the novel collaboration between the steel and chemical industry was evaluated at the Marseille-Fos site in France. There, an ArcelorMittal steel mill and a Covestro production plant are located in immediate proximity. "The cross-sectoral project has once again strengthened the idea of alliance in European industry," said Dr. Alexis Bazzanella from DECHEMA. "At the same time, projects like Carbon4PUR show that European commitment to climate protection and resource efficiency can create and secure jobs."

“Especially in buildings with high foot traffic, it’s important to have an abrasion-resistant and durable flooring so that it still looks appealing after several years,” explains Contardo Pafumi, Industrial Marketing Manager Construction at Covestro. “For such applications, polyurethane-based sealers have proven their worth. They are very robust and also easy to clean.”

More environmentally compliant coating

For these and other reasons, Covestro chose the elastic terrazzo system from the Swiss installation company TEXOLIT AG. It is also particularly low in emissions and complies with AgBB regulations for indoor air emissions. It is also suitable for environmental certification under the LEED Gold Standard (Leadership in Energy & Environmental Design).

In total, an area of 1,800 square meters was equipped with the terrazzo floor. The coating comes from coatings manufacturer KLB Kötztal Lacke + Beschichtungen GmbH and is based on an aqueous polyacrylate dispersion from Covestro´s Bayhydrol® range and a polyisocyanate crosslinker from the Bayhydur® series.

"Buildings are responsible for a large share of global energy consumption and greenhouse gas emissions. This makes it all the more important for us at Covestro to contribute to the Circular Economy and make insulation even more sustainable and efficient in the future. Our goal is to end the use of fossil fuels and make our production processes more sustainable," says Sucheta Govil, Chief Commercial Officer at Covestro.

Using innovative CO₂ technology, Covestro already produces the CO₂-based precursor cardyon®, which is utilized in the manufacture of mattresses, sports flooring, textile fibers and components for vehicle interiors.

New, promising approach thanks to CO₂ technology

Covestro has now succeeded in combining the petroleum derivative ethylene oxide with CO₂ in a chemical reaction to produce first polyols and finally rigid polyurethane foam. Up to 20 percent of petroleum-based raw materials are expected to be replaced by this process in the future. "With the development of these materials, we are endowing the greenhouse gas CO₂ with a new use with versatile applications," says Dr. Christoph Gürtler, Head of Catalysis and Technology at Covestro.

Together with Covestro's industrial partners puren gmbh, BYK-Chemie GmbH and PSS Polymer Standard Service GmbH, it proved possible not only to investigate a wide range of applications but also to develop new analytical methods for the CO₂-based materials. With RWTH Aachen University and the Technical University of Berlin, the ecological and economic potential of this expanded CO₂ technology was investigated along with the in-depth characterization of the novel materials. "The results of DreamResource very clearly demonstrate the diverse opportunities that arise from the use of CO₂ as a basic building block for polyols to produce a wide variety of polyurethane types. The interaction between industry and science plays an essential role in this innovative field," says Dennis Krämer, project manager for national and international research projects for CO₂ utilization at DECHEMA e.V.

Versatile and sustainable insulation

"This renewed expansion of the product range yields enormous leeway," continues Gürtler. Thanks to the promising combination of ethylene oxide and CO₂, surface-active substances can also be produced through this new route in addition to CO₂-based rigid polyurethane foam, which can be used in insulating boards for buildings, for example.

Lake Constance-based puren gmbh is one of the pioneers of rigid polyurethane foam technology and investigated the use of CO₂ polyols in the rigid foam segment in this research project.

Following more than three years of joint research in the collaborative project, over 400 kilogram of the CO₂-based polyol was successfully delivered to puren for further processing. "These initial rigid foam insulation boards made with a CO₂-based rigid foam polyol conform to standards and are already comparable with the market standard in terms of their key technical specifications. During further cooperation, we plan to manufacture additional prototypes and to enhance the properties with the aim of taking a giant step closer to the use of CO₂ as an alternative raw material in rigid foam insulation boards and ensuring rapid final development to market readiness," says puren Managing Director Dr. Andreas Huther. Thanks to this successful collaboration, CO₂ can now be used as an alternative raw material in the rigid foam sector. This will make building insulations even more sustainable and will further reduce the dependence on fossil raw materials.

FISCO GmbH was able to implement the idea of the Dutch construction supplier fischer Benelux B.V. for a completely new force-bearing fixture through the already installed insulation material: The ThermoBracket fastening element was specially developed for rear-ventilated facades with very efficient thermal insulation. It is based on the aliphatic polyurethane (PU) composite Desmocomp^® from Covestro and is easy to install.

“Our composite material is highly resistant to UV radiation, making it ideal for long-term outdoor use,” explains Andreas Hecking, an Aliphatic Composites Specialist at Covestro. “It also meets the high flame retardancy requirements for this application, making it attractive to the construction industry.”

Desmocomp^® has a similar mechanical strength to aluminum, but its thermal conductivity is 1,000 times lower than with the standard metallic product. Therefore, even a low layer thickness of the composite material is sufficient to achieve good insulating performance. This both leads to a gain in the usable surface area on the building and contributes to the saving of CO₂ emissions and material – and thus to the conservation of resources.

“Through the partnership with Total, we are supporting our customers in the rigid foam sector to make their production even more sustainable and to position themselves accordingly,” says Daniel Meyer, Global Head of the Polyurethanes segment at Covestro. “They can use this drop-in solution immediately in their existing manufacturing processes without any technical conversion. The product quality is on par with that of petrochemical-based products.”

“This commercial partnership with Covestro demonstrates Total's goal to produce and commercialize new sustainable products, helping our clients to reduce their carbon footprint,“ says Jean-François Renglet, Vice President Marketing Base Chemicals Division at Total Refining and Chemicals. “It is in line with Total’s ambition to achieve carbon neutrality by 2050 for all its activities worldwide, from production to the energy products used by its customers.”

Gradual transition to alternative raw materials

By gradually transitioning its production to alternative raw materials, Covestro aims to replace fossil raw materials and make its value chains more sustainable. Just recently, the company itself received ISCC Plus certification for the production of renewable aniline in Antwerp and MDI in Uerdingen, as well as for the production of polycarbonate at both sites. For Covestro, the project is part of a comprehensive program with which the company, together with partners, aims to propel the transition to a circular economy and ultimately become fully circular itself.

Mass balance certification across the entire value chain makes production more sustainable – reducing the product's CO₂ footprint and the use of fossil raw materials – and more transparent. The acronym ISCC stands for International Sustainability and Carbon Certification, an internationally recognized system for the sustainability certification of biomass and bioenergy.

"With the mass balance certification across the entire value chain, we want to achieve complete transparency, also for our customers," says Sucheta Govil, Chief Commercial Officer (CCO) at Covestro. "At the same time, we are helping them to reduce their own carbon footprint and are offering them a drop-in solution that they can instantly implement in their existing production processes without the need for technical modifications.”

Systematic tracking of the supply chain

"With the gradual conversion of our production to renewable raw materials, we are helping to drive carbon in circles and are coming closer to our vision of circularity," explains Dr. Klaus Schäfer, Chief Technology Officer (CTO) at Covestro. "The raw materials we use meet the high sustainability requirements of the ISCC Plus Standard throughout the entire supply chain."

As part of a strategic cooperation, Covestro received a first shipment of ISCC-Plus certified phenol from Borealis in October, which was produced from renewable hydrocarbons from Neste. Phenol is an intermediate product for polycarbonate. Consequently, this means that the supply chain from the originally used waste and residual oils and fats to the plastic is now fully ISCC Plus certified. Polycarbonate is used in high-quality applications in the automotive and electronics industries, among others.

Gradual conversion to renewable raw materials

The certification of the plastic as well as the intermediate product MDI strengthens the use of alternative raw materials at Covestro. MDI is used to produce rigid polyurethane foam, which has been providing efficient thermal insulation for refrigeration appliances and buildings for decades. Gradually converting to renewable raw material sources is part of a comprehensive program with which Covestro, in collaboration with its partners, aims to drive forward the transition to a Circular Economy and become fully circular itself.

ISCC ("International Sustainability and Carbon Certification") is an internationally recognized system for the sustainability certification of biomass and bioenergy. The standard applies to all stages of the value chain and is recognized worldwide. ISCC Plus includes further certification options for technical-chemical applications, including plastics made from biomass.

During the JEC World 2020 trade fair in Paris from March 3-5, Covestro will be presenting innovative and sustainable material solutions for various industries at Booth K6 in Hall 5. One important application is lightweight and robust components for vehicles that reduce fuel consumption and CO₂ emissions or increase the range of electric cars. With such products, Covestro is also contributing to the fulfillment of the UN goals for sustainable development (UN-SDGs).

In cooperation with customers and partners and through own developments, the range of applications for Covestro composites has again been expanded in comparison to the previous year. The range extends from pultruded profiles and facade mounting elements to large rotor blades for wind turbines, miniaturized electronic components and sports articles produced in large quantities with short cycle times.  

Robust, lightweight, aesthetic – thermoplastic composites in focus

Covestro has developed a new composite technology that facilitates the industrial-scale production of particularly thin, lightweight, high-strength yet aesthetic parts. It is based on Continuous Fiber-Reinforced Thermoplastic Polymers (CFRTP) and is marketed under the name Maezio™. Thermoplastics like polycarbonate are used as substrate material, and carbon or glass fibers are used for reinforcement.

One current example of an application is the redesigned wheels of the ES8 and ES6 SUVs of the Chinese electric car start-up NIO. At the K 2019 plastics trade fair, Covestro presented decorative wheel blades made of CFRTP composites with which the wheels can be optionally equipped. The benefits mentioned above, including aesthetics, play an important role here.

Another project is the design of an ultra-thin but very robust table as part of a new car interior concept, which Covestro developed together with partners and presented at K 2019. The table requires minimal design space and impresses with its high aesthetic and surface finish.

In addition to the innovative thermoplastic composites, Covestro is also presenting a particle foam made of expanded polycarbonate (EPC) at the JEC World 2020, which is characterized by very good mechanical properties over a wide temperature range, excellent impact strength and good fire protection. The material can be used in high-quality lightweight construction applications and is also recyclable.

High-strength, effective, durable – focus on thermoset composites

Polyurethane (PU) composites have also long been one of Covestro's core competencies. Together with partners along the value chain, the company is pushing ahead with the development of industrial production of these composites using the effective pultrusion process.

The highly reactive and aromatic PU matrix Baydur^® PUL is noted in various applications by outstanding mechanical properties and good wetting of the reinforcing glass or carbon fibers. At the JEC World 2020, Covestro will be exhibiting an example of a chassis component for light commercial vehicles developed and manufactured by Carbon Truck & Trailer GmbH using pultrusion.

The same material can be used to produce profiles for the lower part of the battery box of electric vehicles, for example. These profiles show their highest strength in the longitudinal direction and hold battery modules securely in shape, as has been proven in standard industrial tests for side impact protection. At the same time, the components can be produced efficiently and cost-effectively and can be easily combined with other materials.

The aliphatic PU system Desmocomp^® AP is particularly recommended for outdoor pultrusion applications due to its unique UV and weather resistance. One of Covestro's customers, Fisco GmbH, has used it to produce pultruded mounting elements for exterior facades that are not only weather-resistant but also inherently flame-retardant and mechanically robust. In addition to these elements, Fisco GmbH is able to fulfill the strict thermal efficiency requirements of this application. This property combination is well achieved with Covestros matrix material Desmocomp^®.

Efficient production of rotor blades

The expansion of renewable energies, especially wind power, plays a decisive role in effective climate protection. More intensive use in this area will require more cost-effective production of wind turbines with even longer rotors and thus even greater power output.

A polyurethane resin developed by Covestro allows lighter, longer and more robust rotor blades than the established systems used so far. This is the finding of a recent study by WINDnovation Engineering Solutions GmbH, a leading company in rotor blade design. In combination with glass fiber mats and an efficient vacuum infusion process, the resin can be used to achieve short cycle times in production and thus achieve significant cost savings.

PU dispersions to optimize the sizing of fiber reinforcement

Covestro's wide range of products exhibited at the JEC World 2020 also includes aqueous PU dispersions. They are used as film formers and crosslinkers in the formulation of sizings for glass, carbon, basalt, natural or other types of fibers. Baybond^®, the front-runner in the fiber sizing portfolio, is highly suitable for both thermoplastic and thermoset matrixes.