The plant, which shall create 35 new jobs, will be built at Chemical Park Delfzijl at the northern Coast of the Netherlands. It will use BioBTX's proprietary ICCP technology, which converts the type of mixed plastic waste that would otherwise be incinerated or put to landfill via catalytic pyrolysis into aromatic oil consisting of benzene, toluene and xylenes (B-T-X). These are the same building blocks the chemical industry uses today in coatings, pharmaceuticals and performance materials. They can also be used for the isocyanate production (MDI/TDI) of Covestro, out of which soft foam for e.g. mattresses or rigid foam for insulating refrigerators are made.

"We've followed BioBTX's progress for years and are very happy to now see the point where the technology proves itself at industrial scale," says Dr. Thorsten Dreier, Chief Technology Officer at Covestro. "This marks a very important step. Moreover, it processes mixed plastic waste instead of a single sorted stream, which is exactly the kind of recycling we need more of at scale to make a circular economy become reality."

In total, the plant is expected to recycle about 20,000 tonnes of waste and produce around 10,000 tonnes of renewable aromatic oil and 8,000 tonnes of sustainable by-products from it annually. Compared to conventional, fossil-based BTX production, the process is expected to cut greenhouse gas emissions of the resulting chemical building blocks by 70 to 80 percent.

“Reaching this key milestone in the development of BioBTX marks an important step in our journey towards our mission of making circular chemistry possible. I am very proud of the full BioBTX team and shareholders whose dedication and commitment has made this achievement possible. We are going to build our world’s first fully sustainable aromatic plant. A great accomplishment!” says Ton Vries, Co-founder and CEO of BioBTX.

This milestone concludes a 14-year journey from an idea in 2012 through lab- and pilot-scale to commercial execution. While this first plant focuses on mixed plastic waste, the ICCP technology is feedstock-flexible, with the potential to expand to other sources in the future, such as biomass.

The new compressor operates on the principle of a heat pump: Water vapor is generated during the production processes for TDI, a component of flexible foam. Covestro requires steam for many production processes, but the steam produced during TDI manufacturing is not hot enough. Therefore, some of it is released into the environment as waste heat. The compressor raises the steam to a higher temperature and pressure level, making it suitable for use in production processes.

“Energy efficiency is a key lever for transforming our production towards climate neutrality and a circular economy. The principle is: the less energy we need, the better,” says Thorsten Dreier, CTO of Covestro. “That’s why we’re using every opportunity to make our production even more energy-efficient with modern, innovative process technologies.” From 2005 to 2022, Covestro already reduced its energy consumption by around 40 percent. The next goal: By 2030, the company aims to consume 20 percent less energy per ton of product produced than in 2020.

This project is part of an energy efficiency strategy with which Covestro is driving its transformation to climate-neutral production. As part of the master plan, the company is continuously searching for further potential energy efficiency measures. “With these projects, we are not only reducing our CO₂ emissions, but also saving on energy costs,” says Andreas Doerfer, Global Energy Excellence Manager. “To achieve our energy efficiency target, we must utilize all available options for using the waste heat generated in our processes to manufacture our products.”

Following the installation of an energy-efficient reactor at the TDI plant last year, the new compressor for the Dormagen site is the next major project to future-proof the location: “This investment clearly demonstrates Covestro’s long-term belief in the Dormagen site and its commitment to investing here,” says Philip Bahke, Head of Operations in Dormagen and North Rhine-Westphalia.

Construction is scheduled to begin at the end of this year, with the compressor expected to go into operation in mid-2027.

The initiative was launched in May 2024 and successfully certified by the end of 2025. Covestro Thailand’s Managing Director formally received the certification on April 1, 2026. Covestro achieved verification across all three emission scopes: Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (indirect emissions across the value chain). Notably, Scope 3 remains voluntary, and only a limited number of organizations in Thailand have been able to comprehensively collect and analyze carbon data from upstream to downstream operations.

This project marks a significant milestone in the company’s sustainability journey. The path to success involved overcoming several challenges, including establishing carbon footprint data collection for the first time, where existing data formats and reports were not initially designed to support greenhouse gas calculations. Additionally, Scope 3 assessment presented considerable complexity, requiring extensive collaboration with external stakeholders and coordination across multiple internal departments.

Ms. Nisa Suttipornphaisankula, Managing Director of Covestro (Thailand) Co., Ltd., stated: “Developing our organizational carbon footprint is not merely about compliance—it is about building a critical foundation of data and management systems for the future of our business. We recognize the importance of starting today to prepare for evolving expectations from customers, partners, and global environmental regulations.” “Our ability to cover Scope 1 and 2, and the more complex Scope 3, which requires collaboration across the value chain, along with achieving both CFO and ISO 14064-1 certifications, reflects a robust system aligned with both national and international standards. We see this as a vital foundation for our future business operations”, she added.

Looking ahead, the company has outlined a roadmap toward its “Road to Net Zero” goal for Thailand. In 2026, the plan is to implement Phase 2 of its solar rooftop project, alongside ongoing energy conservation initiatives and systematic greenhouse gas management. The company is also aligning its emission reduction strategies with Covestro’s global targets and aims to maintain continuous CFO certification with TGO in the coming years to further strengthen sustainable carbon management practices.

In addition, this year, Covestro’s Map Ta Phut production site in Rayong was recognized by the Industrial Estate Authority of Thailand (IEAT) as a “Sustainability Network Factory” under the “Sustainability Network Factory Enhancement Project,” highlighting the company’s role in driving sustainability within the industrial sector.

For Schleswig-Holstein, the project represents an important step on the path to climate-neutral transformation of the state. This was emphasized by Tobias Goldschmidt, Minister for Energy Transition, Climate Protection, Environment and Nature of the state, at the groundbreaking ceremony: “The energy transition is Schleswig-Holstein's project of our time. The rapid expansion of renewable energies is a booster for our business location Schleswig-Holstein and makes future-oriented projects like the heat battery possible in the first place. Covestro and Rondo impressively demonstrate how they are driving the energy transition forward with innovative strength, technological know-how, and full confidence. Projects like this contribute significantly to energy sovereignty and to achieving our climate neutrality goals.”

The 100 MWh Rondo Heat Battery (RHB) is scheduled to go into operation by the end of 2026. Breakthrough Energy Catalyst and the European Investment Bank (EIB) are supporting the project. The battery will produce ten percent of the required steam at the site, saving up to 13,000 tons of CO₂ emissions per year.

"As an innovation company, we are always excited when we can further develop and test promising ideas that can bring us closer to our goals of a circular economy and climate-neutral production," says Dr. Thorsten Dreier, CTO of Covestro. "The heat battery is such an idea: a new technology that enables us to take another step forward on our path to a sustainable future."

The Rondo Heat Battery combines centuries-old materials with modern automation: electrical energy is stored in the form of heat – with the help of bricks that have been used as heat storage in steel mills for centuries. The heat drives an ordinary boiler that delivers emission-free steam. With electricity from renewable energy sources, a constant amount of steam can thus be continuously generated.

“This project shows how two of Europe’s central challenges can be solved together,” said Eric Trusiewicz, CEO of Rondo Energy. “As renewable power expands, it increasingly creates daily periods of abundant, low-cost electricity. At the same time, European industry needs reliable, affordable energy to remain competitive. Together with Covestro, we are demonstrating that clean industrial heat can be both highly reliable and a powerful tool for balancing the grid — while building the energy infrastructure needed to strengthen Europe’s industrial base and energy security.”

For Covestro, steam generation is an essential part of the production process and accounts for a large portion of energy consumption. The steam at the Brunsbüttel site is currently still generated with natural gas. Based on the experience with using the Rondo Heat Battery in Brunsbüttel, Covestro is evaluating whether deployment on a larger scale is possible.

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Covestro's Pingtung site is the only production site within the Covestro Group responsible for global supply of powder coating resins, with major customers in the construction materials, automotive, and electronics industries. Powder coatings already have lower carbon emissions than traditional industrial coatings. Now, with ISCC PLUS certification, the Pingtung site can supply traceable low-carbon powder coating resins containing bio-based, bio-circular, or recycled alternative raw materials, officially becoming an important part of the green supply chain.

"In response to global carbon reduction trends, the Pingtung site has completed internal energy transformation and moved toward environmental-friendly processes in recent years, actively supporting the group's green supply chain initiatives," stated CF Tsai, Pingtung Site Manager. "Obtaining ISCC PLUS certification will enhance the Pingtung plant's value in the sustainable supply chain, facilitate regional production portfolio optimization within the group, and secure more international low-carbon product orders."

"The Pingtung site is the second facility among our Taiwan production bases to receive ISCC PLUS certification, following our TPU-producing Changhua site, and is also the group's first powder resin facility in Asia to receive this certification," stated Annie Chen, Managing Director of Covestro Taiwan. "This milestone not only represents Covestro's sustainability strategy in Taiwan, but also demonstrates to customers that Covestro is a value chain partner that can help customers achieve sustainable transformation and contribute to Scope 3 emissions reduction."

In addition to existing low-carbon product lines such as EasyCure, the Pingtung site has also been producing NIA-PFAS[3] super-durable flexible powder coating resin since earlier this year. With ISCC PLUS certification, the site can now provide traceable powder coating resins containing alternative raw materials, demonstrating more comprehensive influence in the sustainable materials market.
 

[1] Covestro's Pingtung site is a powder resin factory jointly invested by Covestro and Eternal Materials Co., Ltd. The joint venture, Covestro Eternal Resins (Far East) Ltd., is located in Pingtung, Taiwan.

[2] Covestro publishes climate neutrality targets for scope 3 emissions

[3] Covestro Expands Advanced Production technology for NIA-PFAS Super-durable Flexible Powder Coating Resin in APAC

The launch and signing ceremony took place at Covestro’s Map Ta Phut production site, attended by Covestro executives led by Nisa Suttipornphaisankula, Managing Director, and Chaiyut Changjenrob, Map Ta Phut Site Manager, along with school administrators, teacher from partner school, representatives from the Map Ta Phut Industrial Estate, tripartite committee members, and Covestro team members. A key highlight was the signing of a Memorandum of Understanding (MOU) between Covestro and five schools: Wat Chak Louk Ya School, Wat Ta Kuan School, Wat Krok Yai Cha School, Ban Nong Fab School, and Wat Map Chalut School, reaffirming the commitment to collaborate throughout the project. The event concluded with a group photo symbolizing the strong partnership and shared vision for sustainability.

This program is more than a CSR initiative— it reflects Covestro’s commitment to supporting the tripartite network and meeting Environmental Impact Assessment (EIA) requirements. At the same time, it helps strengthen trust and relationships with local communities. By working closely with schools, we create meaningful opportunities for engagement and demonstrate that Covestro is a responsible and caring neighbor. These efforts enhance the company’s reputation and reinforce our long-standing presence in the region.

For Covestro employees, Green Guardians is also an opportunity to volunteer, share expertise, and develop new skills—from project coordination and community engagement to sustainability education.

Samaporn Ubonban, Principal of Wat Chak Luk Ya School, added:
“With the collaboration of Covestro, teachers, students, and all stakeholders, we are confident that the ‘Green Guardians’ project will create positive and lasting impacts for our youth and community. We are ready to support every activity Covestro organizes to equip children with the knowledge, understanding, and skills they need to care for the environment responsibly. We sincerely thank Covestro for initiating this project.”

The Green Guardians project aligns with Covestro’s global vision “To make the world a brighter place” and supports the United Nations Sustainable Development Goals (SDGs):

• SDG 4: Quality Education – Enhancing environmental education and resource management skills
• SDG 11: Sustainable Cities and Communities - Building sustainable communities starting from schools and families, extending to the wider community.
• SDG 13: Climate Action – Promoting awareness and behaviors that help mitigate climate impact
• SDG 17: Partnerships for the Goals – Strengthening collaboration between business, schools, and communities for sustainable outcomes

Nisa Suttipornphaisankula, Managing Director of Covestro Thailand, shared:
“Covestro’s community engagement focuses on two key pillars: education and the environment, aiming to create lasting positive impact. Our approach emphasizes meaningful collaboration—not just assistance, but strong partnerships between the company, schools, and the community. We thank all stakeholders, including school teams, local authorities, and Covestro employees, for making this project a reality.”

This launch marks more than just a CSR activity—it is an investment in the future of youth and communities, working together to build a society that values environmental responsibility and is prepared to meet sustainability challenges ahead.

Annie Chen, Managing Director of Covestro Taiwan stated: “ We are grateful to be recognized by the Chemical Administration for Covestro's performance in emergency response practical demonstrations. Safe production is the cornerstone of Covestro's operations and our most important corporate culture. Preventing disasters and establishing substantial response capabilities is Covestro's commitment to protecting our employees and community." 

Covestro Zhangbin Site Manager Hsieh Ming-hsun added: "This award recognizes the enhanced strategies that Covestro's Zhangbin Site has implemented in recent years regarding emergency response drills, including advance planning, personnel coordination, protective equipment checks, and drill implementation. Through continuous drills of critical processes such as disaster control, evacuation, and rescue under different scenarios, we can develop more robust and efficient emergency response capabilities." 

The Zhangbin Site is Covestro Group's largest energy-curing resin synthesis production base and also produces energy-curing monomers. Energy-curing resins can be widely applied in various coating applications, such as optical fibre cables, solar panels, electronic materials, printing inks, flooring, and wood protective coatings. 

As a German polymer materials manufacturer committed to sustainable operations, Covestro not only conducts regular internal safety training but also ensures that each facility conducts multiple emergency evacuation drills annually, regularly inventories the quantity and effectiveness of protective equipment, regularly reviews staffing across all functional teams, and actively participates in regional mutual aid groups to enhance overall factory and regional disaster prevention and response resilience. 

This initiative integrates academic knowledge with real-world industry experience through a variety of activities, including expert-led lectures, off-site field visits, and hands-on workshops. Covestro has supported the learning journey throughout the program, offering insights from its experts and organizing field trips to Covestro’s production center in Map Ta Phut and local communities in Rayong.

In addition, students were given the opportunity to showcase their potential through the Creative Design for Sustainability Contest 2025, which challenged participants to develop concepts based on circularity. Covestro sponsored a total of 60,000 THB in scholarships for the contest, which attracted over 50 submissions.     

A panel of esteemed judges, comprising faculty members and Covestro professionals, selected three outstanding projects based on creativity, practical feasibility, alignment with sustainability principles, and the effectiveness of their presentation and communication.

The Best Design Award – Winner was presented to “Coral Wave”, a project by architecture students inspired by marine life struggling with plastic pollution. The design features an experiential space with physical barriers that simulate the challenges sea creatures face in polluted environments. It aims to raise awareness about plastic waste and coral bleaching, while using recycled plastic bottles as the primary material—demonstrating circularity in action and contributing to waste reduction. The Design Excellence Award – 1st Runner-Up went to “Reform – Plastic Waste into Wearable Art”, created by students from the Communication Design program. This project transforms plastic waste into artistic accessories, reflecting the idea of turning discarded materials into meaningful, wearable design. The Distinction Award – 2nd Runner-Up was awarded to “Second Nature”, another project by architecture students. The design features a modular structure that can be folded and easily relocated, incorporating reused plastic bags that have been cut, woven, and reshaped into sunshades. Installed in the faculty’s central courtyard, the piece explores the relationship between nature and human impact through its interaction with wind and natural light.

All three winning projects received scholarships sponsored by Covestro, with prizes of 20,000 THB, 15,000 THB, and 10,000 THB respectively. In addition, several recognition awards were granted, each accompanied by a 5,000 THB scholarship.

“Sustainable design is a core focus of our faculty, as our students will one day shape the built environment. Through this collaboration with Covestro, they gained valuable insights into circular design, material selection, and carbon footprint reduction—skills essential for responsible architecture,” said Asst. Prof.Waraluk Pansuwan, the Dean of SOA+D, KMUTT. “we’re grateful to Covestro for their support in enriching our curriculum and inspiring our students to turn ideas into real-world solutions.”

Khawissara Wattanapisit, Head of Corporate Communications - Covestro Thailand added, “this collaboration is more than just a competition—it’s a platform to shape future leaders in sustainable design. By working closely with KMUTT, we’re helping students connect classroom knowledge with real-world impact, ensuring they’re equipped to drive change in their communities and industries.”

This initiative reflects Covestro’s global commitment to sustainability, which is embedded in its vision to become fully circular. Through innovation and collaboration, Covestro aims to reduce environmental impact across industries and empower future generations to build a more resilient and resource-efficient world. We believe that great design doesn’t just shape spaces — it inspires change, drives impact, and builds a better future.

Beyond Covestro's recycled polycarbonate roof, the charging station also features EGAT AshNova concrete flooring made from fly ash, a by-product from Mae Moh Power Plant in Lampang province. This reduces cement usage and cuts Covestro (Thailand) Co., Ltd. reinforces its leadership in sustainable innovative materials by collaborating with the Electricity Generating Authority of Thailand (EGAT) to develop an environmentally friendly Electric Vehicle (EV) charging station. The company has provided high-quality recycled polycarbonate solutions for the station's roof, demonstrating its commitment to driving the circular economy and reducing carbon emissions.

Located at the EGAT Learning Center in Thap Sakae, Prachuap Khiri Khan province, the charging station was designed under the "Enlightened EcoCharge" concept, aiming to be more than just an EV charging point but also a learning resource and model for clean energy. The station is equipped with two DC fast chargers of 180kW and 120kW capacity, accommodating up to four vehicles simultaneously. Users can access the service through the EleXA application, with future plans to connect with the Charge+ application and roaming system to support users from Singapore and Malaysia. The station was officially launched on September 26, 2025.

Innovative Recycled Polycarbonate from Covestro

One of the highlights of this charging station is its environmentally friendly and sustainable materials, particularly the roof made from Covestro's recycled polycarbonate, Makrolon® RE, produced at Covestro Map Ta Phut site in Rayong province. Covestro's RE Series polycarbonate is manufactured from bio-circular renewable raw materials that replace fossil-based resources, containing 72-89% bio-based content verified through ISCC PLUS certification. These materials can reduce carbon emissions by up to 100% in select grades, making it the world's first carbon-neutral polycarbonate. The RE Series offers identical properties to conventional fossil-based polycarbonates, allowing for direct substitution without modifying existing manufacturing processes. It is ideal for electronics, automotive, and medical industries seeking to reduce environmental impact while maintaining high performance.

Covestro leads in developing both mechanical and chemical recycling technologies for polycarbonate, enabling plastic reuse while maintaining properties equivalent to new materials, suitable for high-performance applications.

Collaboration for Sustainability

Beyond Covestro's recycled polycarbonate roof, the charging station also features EGAT AshNova concrete flooring made from fly ash, a by-product from Mae Moh Power Plant in Lampang province. This reduces cement usage and cuts carbon dioxide emissions from cement production by up to 58%. Additionally, the station uses low-VOC polyurethane paint from Nippon Paint (Thailand) Co., Ltd.

"This collaboration between Covestro and EGAT not only supports electric vehicle adoption in Thailand but also demonstrates the potential of high-quality recycled materials in practical applications, aligning with Covestro's goals of fully embracing the circular economy and becoming a carbon-neutral organization. Covestro is committed to expanding the use of recycled materials in various products and continuously developing recycling technologies to create a sustainable future for everyone," said Ms. Nisa Suttipornphaisankula, Managing Director of Covestro (Thailand) Co., Ltd.

Since 1987, the European Youth Parliament has brought together thousands of young people from all over Europe in various forums. The flagship events are more than one hundred international sessions held two to three times per year in different countries. In a format similar to the EU’s European Parliament, participants discuss a wide range of socio-political topics in committees, develop ideas, and pass resolutions.

Promoting Discussion and Collaboration

As a socially responsible company, Covestro is committed to supporting the networking, exchange, and creativity of young people – thus strengthening their understanding of democratic values. "Showing commitment and civil engagement is more important than ever," says CEO Markus Steilemann. "That’s why we actively participate in the Youth Parliament and are excited to hear the impulses young Europeans will bring."

At the 102nd international session in Turku, Finland, starting July 21, a Covestro representative will speak with participants about circular economy in the EU. Covestro sees circularity as a key to climate neutrality, environmental protection, resource conservation, and sustainable value creation—and aims to establish it as a global guiding principle.

The 103rd session in Málaga, Spain, kicking off in late October, will focus on strengthening Europe’s capacity for innovation. Covestro will speak in a committee on innovation and the knowledge society and engage with young participants. "It’s especially important to us that in times of populism and misinformation, a fact-based dialogue prevails and democratic values are not eroded," says Steilemann.

At the conclusion of these sessions, participants adopt resolutions at a general assembly to present viewpoints and propose specific solutions. These resolutions often reach political institutions and actors such as the European Parliament, the EU Commission, the Council of Europe, or UNESCO.

While global population growth is slowing slightly, the number of people over 65 is expected to double by 2050. Older people want to remain mobile, independent, and socially integrated. At the same time, already overburdened healthcare systems must become more efficient and accessible. High-performance plastics enable medical innovations and intelligent environments that help seniors maintain independence and participate actively in society. Materials developed by Covestro support for example self-tracking with wearables and smartwatches, as well as telemedicine and remote monitoring.

Solutions for an Aging Global Population and Growing Middle Classes

Alongside the increasing number of seniors, the global middle class is also growing steadily. Despite regional differences, this population segment is expanding fastest – especially in Asia – and is expected to grow by more than one billion people this decade. With rising prosperity, the demand for high-quality products as well as expectations around comfort and sustainability are also increasing. Plastics featuring Covestro materials enable durable, smart, and resource-efficient goods that improve quality of life while reducing environmental impact.

A common factor across much of humanity is increasing connectivity. Over the next decade, we’re likely to live in a hyperconnected world enabling up to one million 5G-enabled digital devices per square kilometer. However, the digital revolution also brings growing levels of electronic waste and sharply rising electricity demand, particularly from data centers. Powerful, highly energy-efficient, and environmentally friendly devices and networks are therefore essential. Robust, recyclable plastics with versatile functions are indispensable in this regard.

Covestro is closely observing global trends such as socio-demographic change, urbanization, and developments in mobility, nutrition, and healthcare. The company provides forward-thinking plastics and their precursors, acting as a driver of progress across key industries.

This project replaces diesel vehicles with five new electric trucks in a first phase for the transportation between Covestro's facility and Katoen Natie warehouse in Rayong. With this, Covestro Map Ta Phut site becomes the first among Covestro sites in the Asia-Pacific region to use electric bulk trucks. Starting from July 2025, the shuttle trips, covering more than 200,000 kilometers annually will be performed by electric vehicles (EVs).  The transition is expected to reduce greenhouse gas emissions around 400 tons per year, equivalent to the environmental impact of planting 20,000 trees.

The initiative reflects Covestro’s and Katoen Natie’s long-term partnership and shared environmental goals. By integrating electric trucks into their daily operations, they are actively contributing to a cleaner, more sustainable future.

“The transition to clean energy is a cornerstone of our sustainability strategy,” stated Kenny Van der Beken, CEO at Katoen Natie Services (Thailand) Company Limited. “These EV trucks, combined with other initiatives such as solar panel expansion and electric forklifts, will help us achieve a 33% reduction in CO₂ emissions across our operations.”

To achieve scope 3 greenhouse gas emissions goal - net zero tons of CO₂ by 2050, Covestro is scrutinizing every part of its supply chain. Cutting indirect emissions from both upstream and downstream activities is essential for this goal, as these sources account for approximately 80 percent of the company's overall emissions footprint.

"This partnership between Covestro and Katoen Naties demonstrates our tangible commitment to reducing emissions across our entire supply chain. The project aligns with Thailand's sustainability goals and creates a scalable solution that could be implemented across other Covestro operations globally", added Chaiyut Changjenrob, Site Manager - Covestro Map Ta Phut site, Covestro (Thailand) Co., Ltd.

As part of the next steps on green logistics journey, Covestro is exploring the feasibility of implementing a standalone electric pellet conveying system at the Covestro Map Ta Phut site to replace the current diesel-powered system.  This initiative, developed in close collaboration with Katoen Natie, represents a strategic move to reducing emissions across our logistics operations. Through dedicated partnership with Katoen Natie, Covestro is advancing its sustainability agenda while maintaining economic efficiency.

According to a memorandum of cooperation, the two companies will jointly trial and apply low-emission fuels, new energy vehicles—such as electric heavy-duty trucks—and other sustainable logistics technologies tailored to Hasco’s primary logistics operations in and around Shanghai. Their goal is to create demonstration projects for green supply chains, supported by a comprehensive evaluation mechanism that will enable continuous optimization and scalable deployment.

“We look forward to exploring forward-looking green logistics solutions through this cooperation with Covestro,” said Cheng Heming, Senior Director of Procurement and Supply Chain Management at Hasco Vision. “By leveraging both parties’ expertise and real-world business scenarios, we aim to develop a logistics model that balances environmental and cost benefits, building replicable experience to promote the low-carbon transformation of the automotive industry supply chain and contribute to China’s dual carbon goals.”

As long-term partners, Covestro and Hasco Vision have already collaborated closely on green, low-carbon materials—such as advancing the use of Covestro’s more sustainable polycarbonates in automotive lighting systems and functional interior and exterior trim components—jointly creating innovative sustainable solutions for the automotive industry.

“Promoting supply chain decarbonization is not only a cornerstone of our sustainability strategy but also a key way to create customer value,” said Kevin Mao, Head of Sales and Market Development for Mobility in China, Engineering Plastics, Covestro. “Through this deepened cooperation with Hasco Vision, we aim to help our customer build more competitive and sustainable supply chains by offering green logistics services for the delivery of our low-carbon materials, together driving progress toward climate neutrality.”

The two parties plan to carry out a year-long green logistics pilot, focusing on commercial implementation planning, test program evaluation, resource readiness, technical feasibility and stress testing. They will jointly collect, share and analyze data to lay the groundwork for subsequent large-scale adoption.

“Green logistics is vital to achieving climate goals and a circular economy, and it relies on support and collaboration across supply chains. With more customers joining, we’re building the experience and business models needed to ensure green logistics solutions are economically and technologically viable, so they can scale sustainably,” said Daniel Wen, Head of Integrated Logistics Asia Pacific, Covestro.

Covestro launched its green logistics initiative in Asia Pacific in 2022, focusing on identifying effective low-carbon transportation solutions for truck logistics, the dominant mode of transport for the company in the region. The initiative supports Covestro’s ambition to achieve net-zero Scope 3 emissions by 2050. These emissions include indirect sources such as transport and raw material processing, accounting for roughly 80 percent of Covestro’s total greenhouse gas emissions.

As part of this effort, Covestro first adopted electric trucking for short-haul transport at its integrated site in Shanghai, delivering chemicals to nearby warehouses. More recently, the company introduced a commercial route using an electric heavy-duty truck to transport raw materials from its Shanghai site to China Jushi’s fiberglass plant in Tongxiang, Zhejiang province—marking the first time regular e-truck logistics services have been extended to a customer.

Covering a round-trip of over 200 kilometers, the e-truck is expected to reduce CO₂ emissions by approximately 36.9 metric tons annually—a 47 percent cut compared to conventional diesel transport, based on estimates from Covestro’s third-party logistics service provider.[1]

This marks the first time Covestro has extended electric transport beyond its own operations to reach a customer site on a regular basis. It builds on experience drawn from short-haul transport using e-trucks to move chemicals between its Shanghai site and nearby warehouses.

“Supply chains play a crucial role in the chemical industry’s path to climate neutrality,” said Marius Wirtz, Head of Supply Chain & Logistics Asia Pacific, Covestro. “This commercial rollout with China Jushi proves that sustainable logistics is both viable and scalable. We’re committed to growing a network of partners to explore and expand transport solutions that bring environmental and business value.”

Pioneering scalable solutions

This cooperation also marks the first time China Jushi has systematically adopted a new energy logistics solution with a partner. The e-truck transports Covestro’s sustainable waterborne polyurethane dispersions to produce fiberglass, which is widely applied in wind turbine blades, new energy vehicles and smart home appliances.

Liao Xinlin, Assistant to President of China Jushi, said: “As a global leader in fiberglass manufacturing, we are committed to driving emission reductions across our operations. The green logistics initiative with Covestro represents a shift in our partnership—from a traditional, materials-based collaboration to a strategic alliance aligned with China’s dual carbon goals. It not only deepens our relationship but also opens new opportunities for broader cooperation.”

“China Jushi has shown exceptional commitment by making this a high-priority project,” said Anand Khot, Head of Coatings and Adhesives Asia Pacific, Covestro. “Our collaboration with Jushi goes beyond supplying high-performance materials—we’re delivering added value by aligning logistics with their climate goals. This differentiated service approach not only supports sustainability, but also deepens customer collaboration and create long-term business value.”

Driving scope 3 emissions reduction

The initiative is part of Covestro’s green logistics program, launched in 2022 in Asia Pacific, where approximately 70 percent of product shipments are transported by truck. The program explores scalable low-carbon options such as electric vehicles, subsidized biodiesel for long-hauls, and hydrogen-powered trucks.

With roughly 80 percent of Covestro’s total emissions stemming from scope 3 sources—including transport and raw material processing—addressing logistics-related emissions is a strategic priority. Covestro has committed to reaching climate neutrality for scope 3 emissions by 2050.

[1] Estimates are based on local emission factors for diesel and electric trucks, and on Covestro’s assumed transport volumes for the current e-truck operation.

"This new line of polycarbonate represents a significant step in supporting the automotive industry's transformation towards a circular future," said Lily Wang, Global Head of the Engineering Plastics Business Entity at Covestro. "By offering high-quality PCR materials derived from end-of-life headlamps, we're enabling our customers to meet increasingly stringent regulatory requirements while contributing to closed-loop recycling of automotive plastics."

Under this initiative, Covestro has been collaborating with partners, including Chinese recycler Ausell and leading automakers, to establish closed-loop pathways for high-value plastics from end-of-life vehicles (ELVs). This program focuses on strengthening recycling processes and establishing reliable supply chains for high-quality recycled materials from automotive waste streams. Through this partnership, Covestro and its value chain allies have developed practical solutions for collecting and mechanically processing end-of-life headlamps into high-quality PCR grades suitable for a range of automotive applications.

"This partnership underscores the importance of cross-sector collaboration in driving the circular economy forward," said Martin Hansen, Regional Director of GIZ in East Asia. "By bringing together key industry players, we are not only creating viable solutions for recycling high-value plastics from end-of-life vehicles but also fostering innovation that supports a sustainable, closed-loop material flow in the automotive industry."

The introduction of these new PCR grades comes at a critical time as the automotive industry, one of the most resource-intensive sectors, faces increasing environmental challenges and regulatory pressures. The EU's End-of-Life Vehicle Directive, which sets recycling targets, along with China's Extended Producer Responsibility (EPR) program and growing sustainability requirements in key global markets, are pushing automotive manufacturers worldwide to seek innovative and sustainable material solutions that comply with evolving regulations.

Covestro’s new PCR grades meet the high-performance standards required for demanding automotive applications, offering excellent surface quality for superior aesthetics and adhering to strict Vehicle Interior Air Quality (VIAQ) requirements. This combination of sustainable content and premium performance empowers automotive manufacturers to meet both regulatory demands and environmental goals without compromising on product quality.

As part of its broader commitment to sustainability and the circular economy, Covestro continues to expand its portfolio of recycled-content materials. In recent years, the company has introduced PCR polycarbonates with up to 90 percent recycled content, and opened its first dedicated mechanical recycling compounding line for polycarbonates in Shanghai. Last year, it introduced a new range of polycarbonates based on chemically recycled, attributed material from post-consumer waste via mass balance for the first time.

Coffee is one of Ethiopia’s most important trade commodities and provides a livelihood for many smallholder farmers. However, changing climate conditions—such as rising temperatures and irregular rainfall—are significantly impacting coffee cultivation. Yields are decreasing, and plants are becoming more susceptible to diseases. This is where the Covestro and GIZ project comes in, working to make coffee production more efficient and resilient.

To achieve this, Covestro has supported to develop solar dryers—parabolic structures that function like greenhouses but offer better control over temperature and humidity. Instead of glass, lightweight, transparent, and insulating polycarbonate multiwall sheets are used, which also provide UV protection. This technology enables fast and hygienic drying of coffee while protecting the harvest from rain, pests, and mold.

GIZ supports the project as part of the German development program develoPPP, which promotes sustainable initiatives in developing and emerging countries. The goal is to combine private sector engagement with development policy objectives to achieve long-term economic and social benefits. "The solar-powered greenhouse dryers have significantly reduced drying times for both washed and naturally processed coffees. This allows farmers to process their coffee more efficiently and bring it to market faster. Additionally, the sealed environment of the dryers protects the beans from contamination, improving quality and minimizing waste. Local cooperatives have embraced this innovation as a valuable asset for their coffee production," explains Dr. Helene Widmer, Project Manager at GIZ. "Our collaboration with Covestro demonstrates how innovative material technologies can contribute to stabilizing agriculture."

Pejman Norastehfar, Head of Inclusive Business EMEA at Covestro, adds: "The successful implementation of solar dryers impressively demonstrates the positive impact that innovative and sustainable technologies can have on the coffee industry. We are proud to work with GIZ and local cooperatives to provide a solution that not only increases efficiency but also enhances the quality and shelf life of coffee. With our solutions, we can help address the challenges of climate change right here on the ground."

So far, six solar dryers have been installed in Ethiopia, and the project continues to gain momentum. One of Ethiopia’s largest coffee roaster has taken notice of the solar dryers and has already purchased four additional units for its own production, which are installed at the moment.

"The successful completion of this project shows that climate protection and competitiveness can go hand in hand," says Dr. Philip Bahke, Head of the North Rhine-Westphalia Site Network. "The modernized plant sets new standards in energy efficiency and underlines our path toward climate-neutral production. In light of persistently high energy costs, the project significantly strengthens the competitiveness of TDI production in Europe. My special thanks go to the entire project team, who professionally implemented this complex modernization during ongoing operations."

More Efficient Processes for More Sustainable Products

The modernized plant consumes 80 percent less energy than conventional processes, achieving a CO₂ reduction of 22,000 tons per year. This is made possible by a new reactor weighing over 150 tons (330,700 lbs) and almost 20 meters (65.6 feet) high, which uses the generated reaction energy for steam production. Covestro started the modernization in summer 2023. In total, the project installed over 3.5 kilometers of new pipelines, around 14 kilometers of cables, and hundreds of new equipment, valves, and monitoring instruments in the plant.

"In Dormagen, we operate Europe's largest TDI production plant. With the successful modernization, we can now offer our customers TDI with an even better carbon footprint," explains Dr. Christine Mendoza-Frohn, Head of Sales Performance Materials for the EMEA and LATAM regions. "This supports our customers in achieving their own sustainability goals and strengthens our position as a reliable partner for climate-neutral and circular solutions."

New Global Energy Efficiency Targets Presented

During the event, Covestro also presented its new, ambitious energy efficiency target for global production. The company targets a 20 percent reduction in CO₂ emissions from energy use per ton of product by 2030 compared to 2020, underlining the central importance of energy efficiency as a lever for achieving operational climate neutrality by 2035. The Dormagen TDI plant, with its annual capacity of 300,000 tons, serves as a prime example of the successful transformation of existing production facilities toward greater energy efficiency.

The Federal Ministry for Economic Affairs and Climate Action (BMWK) has supported this modernization through its federal funding program for energy and resource efficiency.

Further press release:

• Covestro publishes energy efficiency target ›

The energy efficiency target contributes to Covestro's ambitious plan to achieve climate-neutral production by 2035. It is to be achieved primarily thanks to more efficient processes and innovative technologies. For example, Covestro has now commissioned a modern reactor at its Dormagen site that uses waste heat from production processes to generate steam for further manufacturing steps. CO₂ emissions can thus be reduced by up to 22,000 tons per year.

The event to announce the energy efficiency target and the commissioning of the reactor was attended by guests from politics, business and the energy sector, including Oliver Krischer, Minister for the Environment, Nature Conservation and Transport of the State of North Rhine-Westphalia and Dr. Julia Metz, Director of Agora Industrie.

Energy efficiency is an important pillar of Covestro's corporate strategy: "Climate-neutral production can only be achieved if we significantly reduce our energy requirements for the manufacture of our products. This is because there is currently not enough renewable energy available at affordable prices to even begin to cover demand," says Dr. Thorsten Dreier, Chief Technology Officer of Covestro. "In addition, as a supplier of standard products, we must always keep our manufacturing costs as low as possible in order to be competitive in the global market." In view of persistently high energy costs, especially in Germany and Europe, energy reduction is therefore a decisive factor for business success.

At the announcement of the energy efficiency target and the inauguration of the energy-saving reactor in Dormagen, Oliver Krischer also emphasized in the panel talk with Dr. Julia Metz and Dr. Thorsten Dreier how important energy saving is for a sustainable future of the state - and what role the modernization of industrial production plays in this.

In parallel to its energy efficiency management, Covestro relies on renewable energy sources to achieve its climate neutrality goals. In 2024, for example, the company signed a contract with bp for electricity from solar power for the site in Tarragona, Spain, bringing the share of electricity from renewable energy sources at the site to 30 percent. Thanks to a PPA with RWE, the Antwerp site will be supplied with 60 percent renewable electricity from 2026. And four Covestro sites in the U.S. have been powered entirely by renewable electricity since the beginning of 2025. "We are on the right track and I am confident that we will achieve our sustainability goals," says Thorsten Dreier. "The energy efficiency measures will make an important contribution to this."

Here, you can see the paneltalk (German only): 
https://www.youtube.com/live/u2EU6y6r2Zg?si=cuilsrHqp8SyHGts

The Panelists

Further press release:

• Covestro Successfully Completes Modernization of its Dormagen TDI Plant ›

In response to the growing demand for sustainable solutions in currency printing, Covestro is introducing Autentium^®, an innovative polymeric printing substrate. Designed exclusively for currency printing applications like banknotes, Autentium^® combines cutting-edge anti-counterfeiting technology with a recyclable mono-material design.

"The launch of Autentium^® represents a significant breakthrough in currency printing, offering an innovative, recyclable polymeric substrate that excels in printability, durability and is more sustainable," says Daniel Hentschel, Global Segment Manager for ID & Security Printing at Covestro.

Key Features of Autentium^® include:

• Exceptional printability: It supports secure printing techniques such as intaglio and offset, enabling embossed structures and therefore tactile security features that differ from traditional paper and existing polymer substrates.
• No coatings or primers needed: Its secondary properties as a hot-melt adhesive contribute to superior ink adhesion without requiring additional primers or coatings, streamlining the printing process and improving durability.
• Water & Stain Resistance: The polymer absorbs only minimal moisture, which contributes to a low static charge, while at the same time being resistant to contamination.
• Advanced laser engraveability: It allows precise micro-engravings, providing advanced anti-counterfeiting measures and enhancing currency security.
   

As a single-polymer solution, Autentium^® is recyclable, addressing the demand for sustainable materials in banknote production. Its high tear propagation resistance and excellent ink adhesion contribute to extend the lifespan of printed currency and can help reducing the environmental impact and conserving resources.

Furthermore, its durable composition can translate into long-term costs savings by minimizing replacements, making it an ideal choice for governments and the public sector that prioritize security and environmental responsibility.

Meet Covestro at Intergraf Currency + Identity 2025 

Covestro will showcase Autentium^® and other advanced polymeric solutions at the Intergraf Currency + Identity 2025 trade show. Join us from March 5-7, 2025, at the Allianz MiCo, Milano, Italy. Visit us at booth 16 to discover how Autentium^® can redefine your security printing requirements and drive innovation in currency production.

The Covestro U.S. sites Channelview, Texas, South Deerfield, Massachusetts, New Martinsville, West Virginia and Pittsburgh, Pennsylvania, have achieved net-zero Scope 2 emissions for electricity. The sites in South Deerfield, New Martinsville, and Pittsburgh have now even achieved complete net-zero Scope 2 emissions. The remaining certificates have been applied to Covestro's Baytown, Texas facility.

"Even in a persistently challenging market environment, we are working towards our goal of climate-neutral production by 2035 and are consistently implementing our strategy of fully aligning ourselves with the circular economy," said Thorsten Dreier, CTO of Covestro. "By leveraging renewable energy, we're not just reducing our carbon footprint – we're actively shaping a brighter future for our industry."

The agreement with Ørsted, which provides Covestro with 90 MW of renewable energy capacity, will reduce approximately 90,000 tons of CO₂ emissions annually. This represents a significant step towards Covestro's goal of climate neutral production by 2035.

"Our partnership with Ørsted is a prime example of how collaboration and innovation can drive meaningful change in our industry," says Samir Hifri, chairman and president of Covestro LLC. "We're proud to be at the forefront of sustainable practices in the chemical sector and look forward to continuing to execute our strategy to grow sustainably in the U.S."

This announcement follows Covestro's recent low triple digit million Euro investments across multiple U.S. sites, further solidifying the company's commitment to growth and sustainability in the North American market.

The climate impact of Covestro in the manufacture of its products can be assessed using the product carbon footprint from cradle to gate, which can now be calculated automatically for about 50,000 finished products. The methodology for the automated calculation of life cycle assessment (LCA) of Covestro including the product carbon footprint (PCF) is certified by TÜV Rheinland. It complies with relevant ISO standards and Together for Sustainability (TfS).

“Digitalization enables us to gather and process larger data sets automated, while reflecting timely changes at our production sites. No more manual Excel lists and manual calculations. This increases efficiency and makes annual data updates easier. Only through digitalization we can access and analyze real data efficiently enough,” says Dr. Torsten Heinemann, Global Head of Group Innovation and Sustainability. Digitalization is also the basis for data sharing along the value chain. For example, the data from Covestro tool may be integrated into exchange platforms like Catena-X or SiGreen to enable a harmonized data exchange with partners up- and downstream.

Covestro calculated LCA data for products

Covestro determines the specific product carbon footprint and further environmental impact categories for its products. Covestro will provide its customers with LCA data on the products in sale, thereby contributing to emissions assessments and potential subsequent emissions reductions on the customers’ side.

With this milestone achieved, Covestro demonstrates its willingness to walk towards full circularity and climate neutrality by improving data accuracy. Raw material impact data are collected directly from suppliers or are taken from external databases, while other input data, such as energy consumption and waste, are sourced from company Enterprise Resource Planning systems, such as SAP. In addition to the carbon footprint, Covestro offers five other environmental impact categories that the company considers to be key, amongst others the acidification- or photochemical ozone creation potential.

“We announced in Summer 2023 that we started the process. Within this year, we will have data for the around 50,000 products, based on our present product portfolio. They will be updated annually from now on. This means we are going beyond the current market standard and demonstrating our leadership in driving this topic forward” says Heinemann.

Partnership essential to boost Circular Economy

Across the entire value chain, collaboration and partnerships are crucial to achieve meaningful progress, especially in the exchange of vital data. Covestro relies on its suppliers to provide detailed information on the environmental impact of their products, while customers depend on Covestro to deliver accurate data for their own LCA calculations. Beyond individual exchanges, partnerships with industry initiatives such as TfS are essential to establish standardized methods in chemical industry, enabling this data becomes more comparable across companies.

Covestro is sharing data to drive the entire value chain towards a circular economy. By calculating LCAs and increasing transparency, all stakeholders can collaborate more effectively to identify opportunities for reducing environmental impact—especially greenhouse gas emissions—and advancing sustainability goals. Transparency is key to fostering these partnerships. A seamless exchange along the value chain enables access to more detailed and reliable data, supporting informed decision-making and sustainable progress.

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’s CERTEVO^® revolutionizes security printing with several key features: It supports excellent printability via intaglio and offset processes, enabling embossing structures—surpassing traditional paper and enhancing security elements. Its hotmelt nature eliminates the need for coatings and primers, ensuring superior ink adhesion that simplifies printing and boosts durability. Additionally, advanced laser engravability allows precise micro-engravings, making counterfeiting efforts more challenging.

As a single-polymer composition, CERTEVO^® is recyclable, meeting the demand for sustainable security printing materials. Its high tear resistance and ink adhesion extend the lifecycle of printed items while conserving resources. CERTEVO® thereby addresses environmental concerns and meets evolving sustainability requirements in document production.

Furthermore, its durable composition lowers long-term costs by minimizing replacements, making it an ideal choice for governments and the public sector that prioritize security and environmental responsibility. 

Meet Covestro at TRUSTECH 2024

Covestro’s team will be present at the TRUSTECH trade show, held at the Paris Expo Porte de Versailles - Pavilion 5.2, from December 3-5, 2024. We invite industry professionals and stakeholders to discuss with us at meeting room 8 and discover how CERTEVO^® and other advanced polymer materials can transform their security printing needs.

The project pursued two main objectives. Firstly, to develop a scalable framework for market entry and commercialization of more sustainable, circular products and solutions. Secondly, to create added value in partnership. This includes, for example, developing solutions with customers so that they in turn can create added value for their customers with more sustainable solutions. These are, for example, working out end customer-relevant purchasing arguments or jointly implementing increasing sustainability standards. Covestro's projects from various business entities formed the basis for developing a model.

A joint project team consisting of employees from various Covestro business entities and a mixed team from Deloitte led by chemicals expert Kai Göbel and Dr. Amadeus Petzke, Head of Pricing & Monetization, initially collected concrete projects on circular solutions across the Group. Three selected pilot projects formed the basis for the development of a marketing and business development approach that serves both as a blueprint for monetizing Covestro's circular products and for new business development at Deloitte.

“Circular solutions must be profitable to be implemented. Economic incentives that motivate or demotivate stakeholders must be clearly identified and addressed. For this, we need circular thinking, deep market understanding, and the creativity of our employees. We need a robust framework that our colleagues can use as a guide to drive business development in the circular economy. We are continuously developing this framework,” says Sucheta Govil, Chief Commercial Officer at Covestro.

WirtschaftsWoche 2024 has now honored this approach with the Best of Consulting Award in the Chemicals, Pharma & Healthcare sector.

Value creation cycle as the key

A decisive factor in monetization is the integration of the entire value chain, away from individual value creation steps and towards thinking in terms of a circular economy. “It's not just about selling circular products, but about creating sustainable added value along the value chain together with partners and customers. Designing a framework based on specific Covestro industrial projects from start to finish was an exciting project. Winning the award is a great accolade and shows that we have succeeded,” says Bozidar Radner, Deloitte's global key account manager for Covestro and Sector Head Chemicals. The management consultancy Deloitte was able to draw on extensive customer experience and requests from previous projects and learnings.

Development of the framework

Over one hundred Covestro employees identified key requirements for the monetization of circular solutions. In a structured approach consisting of four lab phases with coaching and review meetings in between, the teams successfully drove the pilot projects forward; at the same time, the insights gained led to the further development of the framework. Methodologies, case studies and their importance, as well as the correct sequencing of a project's progression, were explored and refined over the course of the project, with real circular economy pilots forming the basis. An overarching project team from Covestro and Deloitte developed an internal platform for Covestro that provides resources, best practices, and tools such as ideas for customer outreach and legal guidelines for all Covestro business entities.

The result: a structured approach to accelerate the commercialization of circular solutions. This also includes raising awareness among the workforce. An accompanying webinar series, for example, promotes global exchange with internal circular economy (CE) experts and drives the further development of the market entry and commercialization strategy. In concrete terms, implementing the monetization approach in the operational business also means incorporating the circular economy mindset into the initial customer exchange and jointly identifying added value and developing solutions in partnership-based customer discussions. For example, there are “Monetize CE Pioneers”, a group of employees at Covestro who are available to colleagues around the world and who exchange information on their specialist areas and contribute their knowledge of various industries.

The vision of the circular economy and successful monetization are thus continuously developed.

Since 2020, Covestro has been partnering with Ausell to recycle 1 million 19-liter polycarbonate water barrels annually, converting them into high-performance post-consumer recycled (PCR) polycarbonates for various industries such as electronics, home appliances and automotive. With this strengthened collaboration, Ausell will supply recycled polycarbonates derived from discarded automotive headlamps, which Covestro will then process into high-quality PCR materials for automotive engineering applications. This partnership marks a further step to effectively closing the plastics recycling loop within the automotive sector, reducing waste and carbon emissions while enhancing resource efficiency.

Lily Wang, Global Head of the Engineering Plastics Business Entity at Covestro, said: “We are excited to deepen our partnership with Ausell as we work closely with our value chain partners to accelerate the circular transformation of the automotive industry. Together, we are committed to pioneering sustainable solutions that will lead the way toward a circular and climate-neutral future.”

Xia Wenjun, CEO of Ausell, added: “Our enhanced collaboration with Covestro represents a significant step toward achieving our shared vision of a circular economy. By turning end-of-life automotive components into valuable resources, we are not only reducing waste but also contributing to the development of sustainable materials for future vehicle production.”

The automotive industry, facing increasing regulatory pressures for sustainability, as well as following their own roadmap to “close the loop” of materials, is looking for robust and adapted solutions to their challenges.

This collaboration positions Covestro and Ausell at the forefront of efforts to develop compliant, high-performance materials while addressing the challenges of plastic waste management and resource utilization in the automotive industry. The recycled polycarbonates will not only enhance the sustainability of automotive components but also demonstrate the potential for high-value recycling solutions.

Sucheta Govil, CCO at Covestro: “Our investments in R&D are integral to our strategy of creating value for our customers. They are enabling us to expand and maintain our innovation pipeline at a high level. By this, we are the go-to partner for more sustainable solutions which help to meet the climate-neutrality targets of our customers. Thanks to this global innovation booster, we come even closer to our joint goal to become fully circular.”

Digitalization leads the way to the laboratory of the future

One of the key examples of the R&D investments and cooperation across different business segments is the globally available expertise for In-Mold-Coating (i.e., Direct Coating), with the facilities in Leverkusen and other main R&D sites that were enhanced recently. To support further developments in process technology, end-to-end digitalization was implemented to record all process-relevant data. In the highly competitive automotive industry, innovation in In-Mold-Coating technologies enables high quality surfaces for a modern design of cars. This directly feeds the demand for a more efficient automotive production.

Another important investment milestone: High-performance computers (HPCII) mark the next expansion stage of technological evolution in Leverkusen towards an innovation incubator for the circular economy. By enabling simulation of chemical processes, the high-performance computers enable faster and more sustainable research processes. Amongst others they are used for example in foam processing simulations for refrigerators and enable energy efficiency and improved cool chains in end products.

“Simulations of chemical processes are a key element in the development of recycling technologies and research on new molecule classifications,” said Torsten Heinemann, Head of Group Innovation & Sustainability at Covestro. “Moreover, laboratory digitalization enables test data to be recorded in higher quality and to a greater extent than is usual in analogue ways. Both help us to find the most possible and more sustainable solutions for our customers more quickly. Many developments in the field of recycling would be like looking for a needle in a haystack without digital R&D and simulations. “

Chemical recycling is a promising approach especially for plastics that cannot be mechanically recycled or can only be recycled with considerable effort. With chemical recycling, large quantities of the original material can be recovered. One example is the Evocycle^® CQ mattress project: Together with partners, Covestro has developed an innovative technology for the chemolysis of flexible polyurethane foams from used mattresses, in which the main components –polyol and the precursor to the isocyanate TDI – can be recovered. In this way, used mattress foams are directly converted back into renewed polyurethane building blocks.

Infrastructure and global sites benefit from ongoing investment

A functioning infrastructure is the basis for innovative research. Covestro’s investments therefore include modernization measures in its laboratories in Leverkusen. These laboratories drive among others application technology for coatings and adhesives in core industries like automotive and construction, but also special areas such as light guiding applications as well as medical applications.

Also in the U.S., Covestro is investing in a series of modernization and technical upgrades across its Pittsburgh campus. Covestro views the U.S. market as innovative and high potential. By improving the R&D facilities it signals strong commitment to the customers.

In the innovation center in Shanghai, China, distinct investments into infrastructure and digitalization over the past months echoed the leading solutions developments for automotive and electronics industries.

Founded in Aachen in 2007, the CAT Catalytic Centre has extensive expertise in the fields of catalysis, reaction technology, polymer chemistry and chemical recycling. All research projects are focused on contributing to climate targets and lead to a reduction of Scope 3 emissions along the value chain. The development of innovative polymers with a lower carbon footprint, recycling solutions for Covestro materials, and the use of alternative raw materials such as biomass further benefit climate action. An example is the EU-funded Circular Foam research project, where Covestro and RWTH Aachen University cooperated with the CAT Catalytic Centre and 22 other partners to close the material cycle for rigid polyurethane (PU) foams.

As an example of a successful partnership between industry and academia, the CAT Catalytic Centre contributes to a comprehensive EU strategy to promote the circular economy and the development of sustainable materials, such as bio-based plastics, recyclable composites and greener chemicals. In its latest Science, Research, and Innovation Performance¹ (SRIP, June 2024) report, the European Commission once again emphasised the essential role of these areas in the European industrial agenda. Corresponding investments and the transfer of research results into marketable innovations by companies play a decisive role in this regard.

“Industry and the chemical sector in particular are increasingly being called upon to develop alternative sources of raw materials and reduce the use of fossil fuels. Together with RWTH Aachen University, we are continuing to lead the way as pioneers in this area, even in an economically challenging environment,” says Covestro CEO Markus Steilemann. “Long-standing partnerships like our cooperation with RWTH Aachen University help to conserve resources and realise the circular economy. However, the framework conditions in Germany and Europe are also crucial for reaching this goal. Cutting-edge research needs a good climate for innovation so that science and industry can work together even more closely.”

Reducing CO₂: Bio-based aniline developed from sustainable sources

Several projects involving the CAT Catalytic Centre have already taken major steps towards market maturity. One example is bio-based aniline, which can be produced entirely from sustainable sources instead of crude oil using an innovative process. The world's first pilot plant for bio-based aniline was inaugurated in Leverkusen at the beginning of the year. The raw material is used in the plastics industry, in particular for the production of MDI for rigid polyurethane foam. The use of bio-based aniline can help to promote the circular economy in the future and to reduce the CO₂ footprint in buildings through energy-efficient insulating foam.

“A technology transfer between research and industry is a decisive factor for progress in catalysis and an important step in chemical process development towards sustainable chemistry. The collaboration with Covestro enables us to further intensify our expertise in the fundamental field of catalysis,” says Prof. Dr Ulrich Rüdiger, Rector of RWTH Aachen University.

At the joint research centre in Aachen, headed by Professor Jürgen Klankermayer from the Chair of Translational Molecular Catalysis, scientists work after completing their doctorates. Projects benefit from the latest innovations of scientific research coupled with findings from industry and modern laboratories with an adjoining technical centre on the university campus.

¹ _{https://research-and-innovation.ec.europa.eu/knowledge-publications-tools-and-data/publications/all-publications/science-research-and-innovation-performance-eu-2024-report_en}

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.}

Although less associated with the chemical industry or the circular economy, design plays a key role in enabling circularity through various means. It offers a huge opportunity for providers of sustainable and high-performance materials like Covestro to bring in their expertise.

“The design phase determines a large part of a product’s environmental impact: From the choice of materials to repairability, from a long and useful product life to recyclability. We therefore can’t understate the topic of design when we want to become fully circular,” explains Dr. Christopher Stillings, Head of Color & Design at the Business Entity Engineering Plastics within Covestro. “As materials experts early in the value chain, we at Covestro sit in the sweet spot to consult our customers and partners on how to use circular design principles when conceiving a product. We want to systematically collaborate with designers to make use of that.“

Gaining momentum

And while product design is not new, a shift is indeed happening - also due to regulators placing increasing emphasis on the topic. For example, the EU is tightening its requirements for environmentally friendly product designs, and approved new rules to make products sold in the EU more reusable, repairable, upgradeable and recyclable. There is also a proposal for a DIN “Method to achieve circular design of products” on its way. In the USA, the Department of Energy is pursuing its “Strategy for Plastics Innovation”, which also includes the factor of “Recyclability by design”. Other regulatory bodies are discussing similar initiatives.

To use that momentum, Covestro offers solutions in several main areas:

• Dematerialization, e.g. by digitalizing sampling processes. Covestro recently announced its new IMAGIO^® CQ digital sampling tool for that purpose.
• Design for longevity. This is bread and butter for a high-performance materials manufacturer that provides materials e.g. for products for cars, buildings or the cold chain that have a lifetime of several decades.
• Modular design makes it easier to disassemble products and recycle the parts.
• The use of circular raw materials with a low emission footprint make products made of such material more circular to begin with.

The push for circular design is getting stronger and Covestro is addressing the topic on various fronts. In fact, it has been addressing the topic for decades already and can build on that expertise. The K67, a car entirely made of plastics made for the K-fair back in 1967, is just one example.

Andrea Firenze, General Manager at Covestro Spain, said: "Commitment to sustainability is a non-negotiable part of everything we do, and this agreement allows us to take a further step in our mission to make energy use as efficient and sustainable as possible throughout our value chain. In the same way, through this alliance with bp, we will continue to promote the strategic positioning of our Tarragona site through a more stable, more predictable and, above all, more sustainable long-term energy supply." 

Jason Tate, head of European power trading and origination at bp, said: “This agreement highlights not just bp’s commitment to Spain. It’s an example of how bp is continuing to invest in developing our expertise and capability to support European commercial and industrial customers to help meet their decarbonization goals.” 

Under the terms of the power purchase agreement, bp has agreed to supply Covestro with a high double-digit GWh volume of renewable electricity for a period of 10 years, backed by an equivalent volume of Guarantees of Origin (GoO). The current plan is to source the renewable power from an already operational solar photovoltaic (PV) farm, in Teruel, in the Aragon region of eastern Spain, with which bp has an offtake agreement in place. 

Covestro aims to convert its production to 100 percent renewable energy as part of its climate goals until the end of 2035. At the end of 2023, Covestro fulfilled approximately 16 percent of its global electricity needs from renewable sources. 

bp has been active in the Spanish natural gas market for more than 20 years, through management of their LNG portfolio, and supply to C&I customers. In the power and renewables space, bp manages a portfolio of solar offtake and also supplies renewable power, a key growth area for the bp trading business in Europe. 

*Estimate based on a calculation of Scope 2 market-based CO₂ emissions user may have had to report if buying the same amount of grey electricity from their current local supplier.

The Breakthrough Energy Catalyst foundation set up by Bill Gates and the European Investment Bank (EIB) are supporting this installation of the Rondo RHB100 heat battery, which is scheduled to begin operation at Covestro’s Brunsbüttel site at the end of 2026. The project will then produce ten percent of the steam required at the site, saving up to 13,000 tons of CO₂ emissions per year.

Rondo Heat Batteries combine century-old materials and cutting-edge automation to capture electricity and deliver high-temperature heat and power. Electrical energy is stored as heat, using bricks that have been used for heat storage at steel mills for centuries. The heat powers an ordinary boiler to deliver zero-emission steam. Renewable electricity can be intermittently stored when there is an excess available and a constant amount of steam can still be generated continuously.

"As an innovation company, we are always excited when we can further develop and test promising ideas that can bring us closer to our goals of a circular economy and climate-neutral production," says Dr. Thorsten Dreier, CTO of Covestro. “The heat battery is such an idea: a new technology that allows us to go one step further on our way to a sustainable future.”

“Rondo Heat Batteries deliver deep decarbonization by changing the fuel, not the factory,” said Eric Trusiewicz, CEO of Rondo Energy. “We’re honored to be working with Covestro to prove our safety, reliability, and efficiency under real conditions on a large scale over a long period of time. And we’re excited to be deploying in Brunsbüttel, where large flexible electricity loads are particularly valuable to the electricity grid.”

For Covestro, steam generation is an important part of the production process and accounts for a large proportion of energy consumption. The learnings from this first heat battery installation will provide experience and insights for Covestro to be able to assess whether larger-scale deployments are possible.

Bayhydur^® CQ ultra 701-90 is a partially bio-based waterborne crosslinker used in the new hairdryers. It contains approximately 61 percent bio-based content and achieves a 35 percent reduction in carbon footprint compared to traditional fossil-based counterpart. Additionally, it offers better chemical resistance, improved resin compatibility for easy integration with various resins, and clearer film transparency, which enhances the presentation of customized colors in coatings.

“This collaboration not only showcases Covestro’s strong R&D capabilities but also reflects the proactive efforts of various players in the industrial chain towards commercializing bio-based coatings raw materials,” said Anand Khot, Head of Coatings and Adhesives in the Asia-Pacific region at Covestro. “The Tonney hairdryers mark the first commercial application of Covestro’s bio-based waterborne crosslinker in the electronics and appliances sector, providing a strong impetus for Covestro to expand the reach of bio-based coatings in broader markets.”

Both models also use Makrolon^® 205 R50 for their housings. This polycarbonate resin incorporates 50 percent post-consumer recycled content, contributing to landfill waste reduction. Its carbon footprint is 36 percent lower than that of a comparable fossil-based virgin plastic. Makrolon^® 205 R50 holds the Environmental Claim Validation (ECV) certificate from Underwriters Laboratories. Additionally, this polycarbonate grade offers flexibility in wall thickness design, ensuring product safety and design diversity.

“At Tonney, we are exploring ways to leverage material technology to reduce the carbon footprint of our products, while maintaining product stability and appearance to enhance the consumer experience,” said Zhang Hongbin, Chairman of Shanghai Tonney. “The integrated sustainable material solutions from Covestro are helping us drive Environmental, Social and Governance (ESG) development in the hospitality industry and promote a low-carbon travel lifestyle for consumers.”

In addition to incorporating low-carbon materials, Covestro provided the new hairdryers with customized CMF (Color, Material, Finish) solutions to enhance their coatings effects with sustainable concepts. Both companies plan to collaborate on applying polycarbonate aesthetic solutions to Tonney’s future products. Leveraging its CMF expertise, Covestro integrates aesthetic design into the development of sustainable materials, ensuring a balance between aesthetics and circularity considerations, and enabling designers to explore greater possibilities in product design.

To learn more about Covestro’s CMF and Circular Design solutions at Design Shanghai, visit booth 4C33 at the Shanghai World Expo Exhibition and Convention Center from June 19-22, 2024.

“Circularity requires cooperation, and this cooperation with our partners Neste and Borealis is testament to the possibilities at our disposal,” says Guido Naberfeld, Senior Vice President, Head of Sales and Market Development Mobility at Covestro. “We are creating options to turn old tires into new car parts again. With that, we are supporting our automotive customers and addressing an increasingly prominent question discussed across the value chain: How to match high-performance materials with recycled content? Projects like this can be the answer.”

As part of the collaboration, Neste turns liquefied discarded tires into a high-quality raw material for polymers and chemicals manufacturing and supplies it to Borealis. Borealis will then process the Neste-produced raw material into base chemicals phenol and acetone, which are supplied to Covestro. Covestro can use these materials to make polycarbonates. The share of recycled content is attributed via the mass balancing approach all the way to the final products using ISCC Plus certification.

The first products based on the collaboration are already available as each party has manufactured the first batch of their respective contribution to the project. Aside from polycarbonates, the project partners may also consider polyurethanes as a possible end product, which could also find its way into parts of the interior of a car. The companies emphasize that the potential to scale-up these types of developments should be considered when setting ambitious targets for future EU regulations, such as the End of Life Vehicles Regulation.

“We are demonstrating the importance of value chain cooperation to give new value to waste,” says Thomas Van De Velde, Senior Vice President Base Chemicals at Borealis. “We are proud that Borealis, in collaboration with Neste, is able to play a role in this project, providing more sustainable solutions for polymer applications for Covestro and its customers.”

“This project can serve as a blueprint when it comes to establishing circularity in the field of plastics in cars,” says Jeroen Verhoeven, Vice President Value Chain Development for polymers and chemicals at Neste. “It shows how low-quality waste materials can be turned into very high-quality plastics. This is good news for the polymers and automotive industries as well as for the environment.”

The collaboration will be presented during the PIAE in Mannheim on June 19-20, 2024.

Covestro is investing a mid-single-digit million Euro amount in the scale-up from the Netherlands. In addition to Covestro, the financial investors Invest-NL and Infinity Recycling are also involved in the project. Once operational, the demonstration plant will convert 20 kilotons of mixed plastic waste per year. Following successful upscaling of the technology over the past years, the demonstration plant is a crucial intermediate step for the technology to be implemented on an industrial scale.

"Our vision is to fully align with the circular economy and climate neutrality, and we are pursuing all innovative solutions that bring us closer to this goal," says Thorsten Dreier, CTO of Covestro. "Chemical recycling can make a significant contribution to closing the loop and the BioBTX ICCP technology is a promising way of using waste to recover raw materials that we use in production." Unlike other recycling technologies, this technology also makes mixed waste from different source materials suitable for the process.

The investment in BioBTX is part of Covestro's venture capital program, in which the company invests in young start-ups and scale-ups with innovative products, solutions or business models and thus promotes entrepreneurial activities in and alongside its core business. The partnership with BioBTX also includes two joint development agreements. In the development projects, Covestro is researching further possibilities for recycling its own products and contributing know-how in the field of digitalization to improve plant performance.

Covestro has been cooperating with BioBTX for more than four years and, together with the company, has launched the EU-funded Circular Foam project, which is working on the recycling of rigid polyurethane foam using pyrolysis.

"We are pleased that we can contribute our expertise in the areas of application development, digital research and development and chemical recycling to the project and thus provide impetus for a new, Europe-wide circular ecosystem for plastic waste," explains Torsten Heinemann, Head of Group Innovation and Sustainability at Covestro.

"With its participation in BioBTX and the construction of the demonstration plant, Covestro is enabling an important step towards a sustainable chemical industry," says Ton Vries, CEO of BioBTX. "The production of renewable aromatics from plastic waste and biomass is a prerequisite for circular chemistry."

The demonstration plant is scheduled to go into operation by early 2027. Further information on the project can be found here.

The aim of the partners is to recycle the sorted polyurethane foams as efficiently as possible by combining mechanical and chemical technologies after careful sorting by foam type in the mattress cutting plants.

Collaborations leveraging own expertises with like-minded partners are key: In addition to Ecomaison and Covestro, the French dismantling company Secondly and Federal Eco Foam, a Belgian specialist in the mechanical recycling of flexible foams, are involved as partners in the project, which is planned to run for a maximum of 24 months. The project is called Foam Recycling Ecosystem Evolution (FREE) and coordinated by Covestro and half-funded by Ecomaison.

For the FREE consortium, the motivation lies in the added value of the material that can be recovered from the used foams and the opportunity to enter a more sustainable circular economy. The partners want to explore all possibilities in a future-oriented foam recycling ecosystem and are convinced that chemical and mechanical recycling will complement each other in a meaningful way. As dismantler and sorting actor, Secondly is interested in empowering its sorting processes to be able to supply to recyclers a specified quality of foam.

At the same time, the project will provide a good picture of how the foam recycling market in the coming years may look like. The partners truly believe that chemical and mechanical recycling can be complementary given different specifications of inlet materials being sorted already at dismantlers. To provide added value to the PU foam material, the consortium will investigate all possibilities in a future oriented eco-system of foam recycling.

The research and development project includes the foam sorting at the dismantling step, as well as a comparative feasibility study for two recycling processes for the sorted foams covering economic and ecologic value co-creation.

A few years ago, Covestro and its partners developed a chemical recycling process that is the only one of its kind capable of ultimately recovering both main raw materials of flexible PU foams in high purity. The company also operates a pilot plant at the Leverkusen site for this purpose. Together with the waste management industry, the company wants to drive the process forward to industrial use.

To make its vision of a fully circular economy a reality, Covestro is making the development of innovative recycling technologies a priority and calls the evolution of recycling Evocycle^® CQ. The chemolysis of PU mattress foam is the first initiative of Covestro of its kind and is called Evocycle^® CQ Mattress.

"A paradigm shift and intensive cooperation along the value chain are needed for the transition to a circular economy to succeed. The chemical and waste management industries in particular must continue to grow together in the future in order to create synergies and develop solutions together," says CEO Dr. Markus Steilemann. "With innovative recycling technologies and now also as an authorized waste dealer, Covestro is well equipped for this. We can now actively shape partnerships for waste management and a recyclate portfolio in the EU ourselves."

"IFAT brings together many established players in waste management. In addition to making new contacts, we also want to position chemical recycling, which is often still viewed skeptically, as an integral part of a modern circular economy. By participating in IFAT, Covestro is demonstrating to many stakeholders the contributions our company wants to make to circular integration," says Tara Nitz, Manager Global Circular Economy and responsible for IFAT cooperation at Covestro.

Broad portfolio of recycling technologies

In addition to various exhibits showing current examples of recycling solutions and partnerships, Covestro uses the world's leading trade fair for the waste management industry to explain mechanical and chemical recycling technologies in order to create transparency and strengthen confidence in the efficiency of such developments. The company has many years of experience in the mechanical recycling of polycarbonates and thermoplastic polyurethanes (TPU) and only last year significantly expanded its capacities for the processing of mechanically recycled products in China and Thailand.

For Covestro, chemical processes include chemolysis as a method for recovering raw materials under the influence of chemicals, smart pyrolysis at elevated temperatures and enzymatic recycling, in which microorganisms break down the chemical bonds. What they have in common is that the polymer molecules are converted back into the original raw materials, from which new products of the same quality as new goods can be created. The processes will be clearly explained at the Covestro stand on the "Recycling Wheel".

At IFAT, Covestro will also show how circular solutions in its product portfolio are becoming even more recognizable for customers. With the “CQ” concept, Covestro emphasizes the alternative raw material base for its products if it is at least 25 percent. “CQ” stands for Circular Intelligence. With the new recycling technologies, the CQ portfolio is now growing even further. This includes the reuse of polyurethane mattress foam components – the first chemical recycling initiative marketed by Covestro under the name Evocycle^® CQ.

Under a joint pilot program initiated by German federal enterprise GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit), Covestro and partners will collaborate to establish closed-loop pathways for high-value plastics from end-of-life vehicles (ELVs). The goal is to create an efficient and sustainable automotive plastic recycling system, advancing the more sustainable “transformation of the industry”. The pilot program was announced at Covestro’s booth during the CHINAPLAS 2024 international trade fair in Shanghai. Notable partners include leading automotive brand owners such as NIO of China and Volkswagen, Chinese recycling company GEM, and third-party certification bodies like TÜV Rheinland.

"We are proud to partner with like-minded value chain allies to pioneer closed-loop plastic recycling in the automotive sector," said Lily Wang, Global Head of the Engineering Plastics Business Entity at Covestro. "By leveraging our collective strengths and resources, we are confident in our ability to build a closed-loop for automotive plastics recycling, thereby reducing waste and carbon emissions at the source while improving resource use efficiency. Through this joint program, we aim to expedite the automotive industry’s transition toward a more climate-neutral and sustainable future."

"The automotive industry stands as one of the most resource-intensive sectors globally, yet the potential of high-value plastics from ELVs remain largely untapped," said Martin Hofmann, Cluster Head in charge of Climate, Energy, Environment and Biodiversity at GIZ. "GIZ is steering an innovative endeavor to explore closed-loop pathways for high-value plastics from ELVs. I firmly believe that GIZ and our partners can forge a path towards the transition to a sustainable, circular economy."

As part of the pilot program, a team of professionals will explore methods to recycle and process waste polycarbonate components, such as end-of-life car headlights, into post-consumer recycled (PCR) polycarbonates. The recycled materials will then be reused for various interior and exterior vehicle applications, saving resources and reducing carbon emissions.

This could offer urgently needed long-term solutions for the automotive manufacturing industry, which seeks high-quality PCR materials that are compliant and high-performance amid increasingly stringent regulations. For example, in 2023, the European Commission proposed a new regulation to enhance the circularity of the automotive sector, mandating that 25 percent of the plastics used in a new vehicle must come from recycling, of which 25 percent must be recycled from end-of-life vehicles.

Covestro will also be showcasing more solutions for the automotive industry at its booth at the CHINAPLAS 2024, such as an intelligent front grill and mono-material polycarbonate headlamp that are designed for a connected and circular future.

For a closer look at Covestro’s solutions at the CHINAPLAS 2024, visit the company at booth 7.2-C38, at the National Exhibition and Convention Center (Shanghai) from April 23 to 26, 2024.

Initial market engagement with automotive brand owners for a serial application of a high-purity polycarbonate is promising, it would represent having a transparent polycarbonate attributed with chemically recycled raw materials.

"We are very excited to expand our existing portfolio of more sustainable polycarbonates with this new product range, which marks another milestone in building the circular economy," explains Lily Wang, Global Head of the Engineering Plastics Business Entity at Covestro. "Together with our partners, we are already helping to conserve fossil resources and to give a second life to existing waste streams. We also support our customers in achieving their sustainability goals by providing materials that meet the highest purity standards."

Recycled raw materials in trend

More and more industries are asking for products with a specific proportion of recycled raw materials, also in the expectation of upcoming regulatory requirements or voluntary programs, such as the European End-of-Life Vehicle Directive under review (ELV) and the U.S. Electronic Product Environmental Assessment Tool (EPEAT) for electronics products. The RP series offers identical quality as incumbent fossil grades and belong to Covestro's CQ family. The company uses this suffix to identify products that contain at least 25 percent alternative raw materials. At certain sites, such as Krefeld-Uerdingen in Germany, the plastics in the new range are also produced exclusively using renewable electricity.

The input for Makrolon^® RP is provided by Neste and Borealis: Neste provides high-quality recycled feedstock for new polymers, which is then turned into phenol and acetone by Borealis before it finds its way to Covestro’s site to produce Makrolon^® RP.

"Through chemical recycling, we can enable recycled content even for the most demanding applications," says Jeroen Verhoeven, Vice President Value Chain Development for Neste’s polymers and chemicals business. "Therewith, we can help companies across various sectors to achieve their recycling-related targets – and we are excited to see Covestro put it into motion."

"Borealis is very happy to support Covestro in this important initiative – helping to provide credible sustainable solutions and demonstrating the importance of value chain cooperation to give new value to waste," says Thomas Van De Velde, Borealis Senior Vice President Base Chemicals.

In addition to applications in the automotive industry, Covestro also wants to address other key industries such as the electrical & electronics and the healthcare industry. The aim is to manufacture high-quality and durable products with chemically recycled attributed feedstocks. At the end of a long usage phase, the plastics can still achieve a "third product life" through mechanical recycling and the further development of chemical recycling technologies.

The new series complements Covestro's existing portfolio of more sustainable polycarbonates – the mechanically recycled Makrolon^® R products and certified mass-balanced grades of the Makrolon^® RE series, which are produced using biowaste and bio-residues. The RE series are now also available with 25 percent renewable attributed sustainable share.

"The new contract shows: We are making consistent progress on our path to climate-neutral production - even in economically challenging times," says Dr. Thorsten Dreier, Chief Technology Officer at Covestro. "Because we are convinced that our vision of a complete focus on the circular economy and climate neutrality is the only way to ensure the long-term success of our company."

Ulf Kerstin, CCO of RWE Supply Trading, says: "We are delighted to support Covestro in achieving its ambitious sustainability goals and to be able to accelerate the transition to climate-neutral production. The great interest of our customers in green power underlines the importance of CO₂-free power for the manufacturing industry."

The new PPA with RWE replaces a current agreement, which expires at the end of 2025. At the Antwerp site, Covestro produces the high-performance plastic polycarbonate, which is used in car headlights, electrical and electronic components, LED lights, medical technology and many other applications. Polyether and the important industrial chemical aniline are also produced there, and Covestro is currently expanding production there with the construction of a new world-scale plant.

"This supply agreement is a further step towards increasing the proportion of renewable power in our production," says Dr. Georg Wagner, Managing Director of Covestro in Antwerp. "With this and the use of sustainable raw materials and innovative recycling technologies, our production site is on the way to a climate-neutral and fully circular future. We are delighted to have found a partner in RWE with whom we can reach the next level."

Covestro aims to achieve climate-neutral production by 2035 and has already concluded several electricity supply contracts worldwide. Since 2023, the site in Shanghai has been supplied with 45% of its electricity from solar and wind power, and in the USA, Covestro has concluded a virtual power purchase agreement with the company Ørsted for 200 gigawatt hours of solar power, which corresponds to twelve percent of the electricity requirements at the Baytown site.

By 2025, ten percent of the electricity at the company's sites in Germany is also to come from renewable energy sources. In this way, Covestro aims to achieve the interim target of reducing greenhouse gases from production by 60% by 2030. At the end of 2023, Covestro covered about 16% of its global electricity needs from renewable sources.

In attendance at the opening ceremony were North-Rhine Westphalia’s Deputy Minister President Mona Neubaur as well as Professor Walter Leitner, Managing Director of the Max Planck Institute for Chemical Energy Conversion in Mülheim an der Ruhr. Together with Dr. Thorsten Dreier, Chief Technology Officer of Covestro, they discussed the significance of bio-based raw materials for a sustainable chemicals industry of the future.

“Among other things, aniline is a key raw material for foams used to insulate buildings and refrigerators,” explained Dreier, on the significance of the base chemical. “Until now, aniline has been produced from fossil raw materials such as petroleum, which releases CO₂ and fuels climate change. With our new process, we are contributing to building up a circular, bio-based economy, and I am very proud that we have now succeeded in making the jump to the next technological level.”

Covestro developed the process, which has already won several awards, together with partners in the scientific community. Compared to conventional technology, the process leads to a greatly improved CO₂ footprint of aniline. Covestro has made a seven-digit investment in the pilot plant at the Chempark Leverkusen.

"Sustainable innovations from North Rhine-Westphalia are making a decisive contribution to the transformation of Germany as a chemical location. The world's first pilot plant for bio-based aniline is an impressive example of this," emphasized Neubaur, who is also the State Minister for Economic Affairs, Industry, Climate Protection and Energy. "In order for the industry to continue on its path towards a circular economy and climate neutrality, it needs planning and investment security above all. As the state government, we are therefore working hard to ensure that North Rhine-Westphalia remains an attractive business location and becomes the first climate-neutral industrial region in Europe."

Professor Leitner also underlined the importance of partnerships. “The project illustrates the cooperation between research-based industry and application-oriented science. There are many intersecting partnerships like these, especially in NRW. Germany needs more of this in order to assert itself as a research and technology location.”

Use of biotechnology

The project also clearly showcases the potential contribution of the industrial (“white”) biotechnology to plastics production: in the new process, a customized microorganism helps convert an industrial sugar extracted from plants into an intermediate product through fermentation. This takes place under milder and thus more environmentally compatible conditions than in conventional processes. In a second step, chemical catalysis of the intermediate product then creates the aniline with one hundred percent plant-based carbon.

The research on bio-based aniline will also continue to be funded by the German government. The German Ministry for Food and Agriculture is funding a follow-up project (Bio4PURDemo) from Covestro and partners, which started in March 2022 and runs until 2025. 
The RWTH Aachen with the CAT Catalytic Center and the University of Stuttgart, as well as the technology transfer initiative located there, are also participating in the project.

Around six million tons of aniline are currently produced worldwide, with the volume growing by approximately three to five percent per year on average. With a production capacity of more than one million tons per year, Covestro is one of the leading aniline producers.

The Panelists

Background texts:

• Chemical Industry and white biotechnology ›
• Biotechnology and recycling ›
• Special research group for enzyme technology ›
• Use of white biotechnology in production ›

“Volume II of ‘The Adventures of Young Guardians’ is a lively and interactive picture book. It guides children to learn the concepts of materials recycling and waste reuse in a simple, easy-to-understand way and to develop their environmental protection awareness and behavior,” said Wen-Chung Pan, Minister of Education. 

“Materials recycling and zero waste is an ambitious goal. It has to start from the design phase of a product, such as using recyclable materials as well as recycled materials as raw materials,” said Shieu Fuh-Sheng, Minister of Environment. “And when the product reaches the end of its life, it must be recycled as well. This picture book can guide children to adopt the concept of recycling, thereby changing their living and consumption habits. Let us work together to create a world without waste and give children a better future with abundant resources.” 

“Fulfilling the increasing demand for more goods and services, we realize that resources to do so are limited,” said Dr. Jörg Polster, Director General of the German Institute Taipei. “Therefore, optimization of these resources has become a crucial issue in our modern society. Covestro‘s picture book is addressed to the younger generation and helps the readers to familiarize with this important topic in an easy manner.” 

“The National Parks service emphasize resource sustainability,” said Mao-Chun Chen, Director General of the National Park Service of the Ministry of the Interior. “the Increase of garbage and waste is a common problem faced by the world. Only by implementing garbage classification can recycling and reuse be possible. Recycling creates the value of a circular economy and makes our earth better and more sustainable.” 

“I would like to express my gratitude to the Ministry of the Environment for giving us lots of guidance and suggestions while we were localizing the picture book,” said Dr. Carsten Wildebrand, Managing Director of Covestro Taiwan. “The circular economy is the key to sustainability development. Volume II of “The Adventures of Young Guardians” has now been released. Through this picture book’s vivid story, we hope to plant a seed of cherishing the earth in every child’s heart so the circular economy concept can take root in their lives. We would also like to sincerely thank all partners for their support, which allows us to send this book as a gift to young earth guardians before the Lunar New Year. We also encourage parents to download the electronic version of the book and read it with their children during the holiday season. Let’s take care of our earth together.” 
 

All partners will promote the story via the physical picture books published by Covestro. The National Taiwan Science Education Center will incorporate this into its Edison project for children in rural areas who will visit the center; the National Museum of Natural Science will conduct lectures or courses related to marine waste activities at the museum and distribute picture books as prizes to participants. The National Science and Technology Museum will hold camp activities and provide picture books; the National Museum of Marine Biology & Aquarium will place picture books in its exhibition area for the public to freely request; and the National Museum of Marine Science & Technology will distribute the books when carrying out activities in the museum.

The National Park Service of the Ministry of the Interior has sent the picture books to the Interpretation and Education Section of each National Park Management Office and organized environmental education related activities, whilst the Department of Social Welfare of the Taipei City Government has placed the picture books in the children’s halls of the library for the public to read. The Department of Social Affairs of the Changhua County Government will place the picture books in its social buildings for the public to freely request; the Department of Social Affairs of the Pingtung County Government will coordinate parent-child crafts, parent-care lectures, parent-child storytelling and other activities, and distribute picture books to participants during those activities. Covestro Taiwan will also start its storytelling volunteers program using the picture book and encourage its employees to volunteer to facilitate interactive storytelling at the campus.

The bilingual picture book “The Adventures of Young Guardians – Volume II” has been adapted from a work by Covestro Thailand and its local institutions. The localized bilingual picture book can be downloaded here: https://www.covestro.com/press/download/fb1c984f-4ae3-462c-b6cc-6852fa968eeb/.pdfAll

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.

Covestro is already making an important contribution to more sustainable vehicles and infrastructure with innovative material solutions. In this context, the company is also working in close partnership with Team Sonnenwagen, a team of around 50 students from RWTH Aachen University and Aachen University of Applied Sciences. It is dedicated to developing racing cars that are powered solely by the sun. Covestro shares the students' enthusiasm because the racing cars, with their high efficiency and use of new technologies and materials, are a powerful symbol of the mobility of the future. That is why Covestro is supporting the team as the main sponsor with material solutions and technical exchange for another two years.

"In order to create a climate-neutral and circular mobility of the future, business, politics and society must pull together. At Covestro, we are contributing to this transformation by offering the automotive industry raw materials based on biomass or recyclates and manufacturing our products as energy-efficiently and with as few emissions as possible," said Dr. Thorsten Dreier, Chief Technology Officer, during the discussion. "At Covestro, we want our production to be climate-neutral by 2035 and are relying on energy from renewable sources and innovative process technologies to achieve this."

Covestro's material developments focus on solutions for the major trends of electromobility, autonomous driving and the need for individualization. These include material solutions for compact, powerful and safe batteries for electric cars and robust charging systems, plastics for connected mobility and the Internet of Things, as well as various products for aesthetic and functional automotive interiors and exteriors.

Covestro has been supporting Team Sonnenwagen in the development of ever more efficient solar racing cars since 2017. The students are working together in a wide range of disciplines to improve the aerodynamics, optimize the chassis and install a particularly efficient photovoltaic system and battery. Participants at the NRW Mobility Day were able to take a look at the Covestro Photon, the predecessor model to the current Adelie racing car, and talk to team members. With the Photon, Team Sonnenwagen became European champion at the European solar race in Zolder, Belgium, in September 2022.

Dormagen as TDI hub in Europe 

The TDI plant in Dormagen has an annual capacity of 300,000 tons. It uses the gas phase technology developed by Covestro, which even before modernization required up to 60 percent less energy and up to 80 percent less solvent than conventional processes. The current investment will significantly increase the efficiency and therefore sustainability of the plant even further. TDI is an important raw material for soft foams, which provide comfort in mattresses and upholstered furniture as well as car seats, for example. The material will continue to play an important role for Covestro and the processing industries in the future. 

"In Dormagen, we maintain the largest production facility for TDI in Europe, which means that the location plays a central role in the reliable supply of our customers in the region. Now we continue to consistently align ourselves with their needs. The investment not only underlines our commitment to the European market, but also enables our customers to further reduce their indirect CO₂ emissions on the way to developing climate-neutral and circular products for the consumer markets," says Dr. Christine Mendoza-Frohn, Head of Performance Materials Sales EMEA and LATAM. "At the same time, this investment also underlines our ambition to play a leading role in climate protection and the circular economy together with our partners along the value chain." 

As a company, Covestro is completely aligning itself with the circular economy. Along the way, the company has set itself the goal of achieving operational climate neutrality by 2035. Increasing the efficiency of existing production processes is an important lever for this. From 2005 to 2020, Covestro was able to reduce its specific energy consumption – i.e. the energy consumption per ton of product manufactured – by about 35 percent. By 2035, the specific primary energy demand of the three NRW sites is to be further reduced by around 25 percent compared to 2020 through targeted energy management. Covestro aims to save around 1,100 GWh of primary energy per year from 2035. This corresponds to the annual consumption of more than 50,000 average German households.* Within the next five years, almost half of this potential is to be realized. 

The modernization of the TDI plant in Dormagen is partly funded by the German Federal Ministry for Economic Affairs and Climate Action as part of the Federal Funding for Energy and Resource Efficiency. 

* The figures refer to the calculations of the Federal Statistical Office on the energy consumption of private households for housing (2010-2020): Homepage - German Federal Statistical Office (destatis.de)

The joint lab will mainly focus on the commercialization of low-carbon material solutions in future EV models and the establishment of relevant standards, as well as the development of next-generation smart surface technologies and battery solutions. This initiative builds upon a cooperation agreement signed between the two companies at the CIIE last year.

"We’re delighted to deepen our collaboration with HiPhi," said Dr. Markus Steilemann, CEO of Covestro, during the unveiling ceremony at Covestro’s booth at the CIIE. "We set out to address the key challenges of future mobility with the launch of the joint lab. With our common commitment to pioneering low-carbon smart mobility and by combining our strengths and resources, we believe the lab will accelerate the automotive industry’s transformation towards a smarter and climate-neutral future."

"HiPhi aims to redefine the luxury brand in the new era. We are accelerating the adoption of intelligent and low-carbon technology in smart EVs to provide global users with a safe, efficient and sustainable travel experience, thereby changing the future of mobility and contributing to society," said David Ding, Founder and CEO of HiPhi. “Covestro’s advanced material expertise is key to helping us achieve this vision. The establishment of our joint laboratory stems from Covestro’s recognition of the innovative strength represented by HiPhi and other Chinese companies. We also aspire to empower our global partners and foster mutually beneficial relations through the CIIE.”

On display at Covestro’s booth at the CIIE is the HiPhi Y, the latest luxury SUV that incorporates advanced polycarbonate solutions from Covestro, most notably in the headlamp and LiDAR lenses. As EV becomes increasingly smarter, the headlamp presents new opportunities in digital communication beyond lighting. On the HiPhi Y, the headlamp lenses are turned into a projector to display signs and patterns in front of the vehicle, creating an interactive interface with pedestrians and other vehicles. Covestro’s high optical performance Makrolon^® AL solutions offer the needed dimensional stability, UV resistance and high transparency required for this application. In the LiDAR lenses, the Makrolon^® AX portfolio demonstrates superior performance compared to glass, including excellent infrared transmittance, shaping curved surfaces and impact resistance against stone chips. They can also endure the working environment of LiDAR at temperatures from 110 to 115 degrees Celsius for extended periods.

"As the mobility industry embarks on a journey towards carbon neutrality, the demand for circular, low-carbon footprint materials is growing rapidly and will only accelerate in the near future," said Lily Wang, President of the Engineering Plastics segment at Covestro. "We hope to collaborate with more like-minded companies, like HiPhi, to accelerate the decarbonization trend and pioneer smart technology development at the same time."

HiPhi has been a long-term partner of Covestro since 2018. Covestro’s material solutions have been applied to HiPhi’s flagship models, such as the polycarbonate solutions that enable a "smart" B-pillar equipped with complex functions in the all-electric SUV HiPhi X. HiPhi Z, a smart sports sedan, employs polycarbonate grades for the touchpad switch on its steering wheel – enabling a futuristic interactive design – as well as high performance waterborne polyurethane adhesives for auto interiors.

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.

"For me, Team Sonnenwagen had already won even before the race! Team Sonnenwagen had captured the hearts and minds and the collective enthusiasm of all Covestro employees around the globe," says Sucheta Govil, Chief Commercial Officer of Covestro. "The team grabbed its rightful first place in qualifying and set its sights on victory from the start from pole position. The Covestro team was integral in its support. Yes, support to the students via innovative material developments but also fully involved throughout the race. And the Aachen-based team did its part: With their efficient car design and sophisticated driving performance, they led from the very front in performance, in design and in resilience, guts and stamina. I'm very proud of the team!"

"Of course, risk always rides along, especially if you want to achieve a top position," says Simon Zaers from Team Sonnenwagen. “Nevertheless, our intensive development work of around two years really paid off, especially because we also attached importance to a safe design. It played its part in ensuring that no one was injured in the accident. We were also able to gain a lot of valuable experience for the construction of our next solar runabout, with which we would like to participate in the World Solar Challenge 2025. Together with the other teams, we continue to pursue our goal of enabling more sustainable mobility with innovative designs – powered only by the power of the sun.”

Covestro shares the enthusiasm of the Aachen team and has been supporting it as a main sponsor for around five years. The company is convinced that high-performance plastics are the key to climate-neutral and circular mobility in the future, and is working with customers and partners to develop material innovations and new recycling technologies to achieve this.

Covestro also believes that the 50-strong Sonnenwagen team is on the right track in terms of cooperation: from development and design to the race itself, nine departments worked closely together to optimize aerodynamics and electrical engineering, the chassis, the powertrain and, not least, the driving strategy. The result after more than 200,000 hours of calculations for the outer shape and around 10,000 workshop hours for the body is impressive – and weighs a lot: the structure of the Adelie weighs in at 16 percent less than its predecessor, and the chassis even weighs a fifth less. These improvements are also due to materials from Covestro.

"After the race is before the race," sums up Lina Schwering, 1st Chairwoman of Team Sonnenwagen. "We will also learn from this competition and continue to optimize our design with a partially new team, just as the other teams are doing. There are very many parameters on whose interaction the race will be decided, and consistency and the will to consistently learn from experience will ultimately lead to the goal. However, this race has also shown us that in the end it also depends on a certain quantum of luck."

"The launch of our MCR production line marks another significant stride in our journey towards achieving a circular economy and operational climate neutrality by 2035," said Sucheta Govil, Chief Commercial Officer of Covestro. "Plastic waste recycling is pivotal in realizing this vision, and through the expansion of our recycled plastics production capacity, we aim to lead the way in driving sustainability across diverse industries."

Covestro is committed to supplying over 60,000 tons of recycled-content polycarbonates annually in the Asia Pacific region by 2026, in response to robust market demand. Recently, the company also transformed an existing compounding line at its Map Ta Phut site in Thailand for mechanically recycled polycarbonate.

"These investments enable us to meet the rising demand for PCR polycarbonates, enhancing our capacity and efficiency. With new or repurposed capacity now operational, we are better positioned to assist our downstream customers in their journey towards more sustainable products, expediting the transformation of industries towards a circular and climate-neutral future," said Lily Wang, Head of Covestro’s Business Entity Engineering Plastics.

A broad range of PCR portfolio

The demand for such materials is surging on a global scale, driven by regulatory initiatives like the European Union’s proposed Directive on end-of-life vehicles (ELV Directive), which sets strict benchmarks for the utilization of recycled plastics. Furthermore, industries like consumer electronics are poised for increased demand for recycled materials, especially those with a substantial recycled content.

These market dynamics underscore the significance of Covestro’s recent developments in providing PCR polycarbonates. Earlier this year, the company unveiled a polycarbonate boasting 90 percent recycled content. This grade not only attains outstanding whiteness and highly saturated colors but also touts a sustainable feature – a 70 percent reduction in carbon footprint compared to its fossil-based virgin plastic counterpart. Achieving this remarkable accomplishment requires a meticulous selection of high-quality recycled materials and precise optimization of material composition during the compounding process.

Furthermore, Covestro is actively engaged in pioneering the chemical recycling of polycarbonates. Having successfully developed an innovative process within the laboratory, the company is now embarking on the technical implementation of this breakthrough at a pilot scale.

Expansion of polycarbonate production capacity in Asia Pacific

After debottlenecking multiple production lines at the Map Ta Phut site in Thailand, Covestro is nearing the final stages of a program to enhance polycarbonate production capacity and capabilities across the Asia-Pacific region. This program also includes the addition of new production lines at sites in Shanghai and Guangzhou, China, as well as Greater Noida, India, in recent times. The combined additional capacity now exceeds 100,000 metric tons annually. These strategic projects, aimed at optimizing the regional production network, have been supported by using digital tools, which also reduced investment costs.

"In this way, we aim not only to meet the growing demand for polycarbonate in Asia, but also to offer our customers there an improved product quality," says Dr. Nicolas Stoeckel, Head of Operations in the Business Entity Engineering Plastics. "Depending on demand, the upgrades can be used for compounding recycled or conventionally produced polycarbonate." Therefore, both projects are also about improving Covestro´s ability to produce more plastics with higher recycled content.