Green tie-ups: Covestro/Encina in long-term supply of circular raw materials; Braskem/Shell to produce circular PP from mixed plastic waste in Germany

German materials firm Covestro and Encina, a US-based producer of ISCC PLUS certified circular chemicals, reached a long-term supply agreement for chemically recycled, circular feedstock derived from post-consumer end-of-life plastic. Specifically, Encina will supply Covestro with benzene and toluene pending the completion of Encina’s world-scale production facility, anticipated to come online at the end of 2027.

Building upon previous sustainable sourcing efforts, this marks the first major procurement agreement involving chemically recycled, circular-based raw materials for Covestro, a major step in the company’s journey 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 realising our vision of a circular economy," said Thorsten Dreier, Chief Technology Officer at Covestro.

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.

Covestro adds its 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 milestone for incorporating chemical recycling of end-of-life plastic, into Covestro’s production.

In other news. Braskem Netherlands and Shell Chemicals Europe Bsigned an agreement to produce circular polypropylene (PP) from mixed plastic waste. Withthis agreement, Shell will upgrade a variety of pyrolysis oils into virgin-quality circular feedstocks at the Shell Chemicals Park Moerdijk, Netherlands. Braskem will then convert this feedstock into circular PP in its plant in Wesseling, Germany.

Chemical recycling, a complementary process to traditional mechanical recycling, converts plastic waste that is unfit for mechanical recycling into virgin quality raw materials for the production of new plastics. The first step of this process is turning plastic waste into pyrolysis oil, a valuable alternative to virgin fossil feedstock for the chemicals industry. Pyrolysis oil, through conventional chemical processing, is converted into propylene and ethylene, that in turn can be processed further into new, virgin-quality circular plastics.

This pioneering and strategic agreement with Shell is aligned with Brazilian petchem firm Braskem's ambition to increase the share of sustainable feedstock in its portfolio. The circular PP will be commercialised under the brand Wenew, a platform of innovative actions that represent and consolidate Braskem's efforts to achieve a circular economy.

It will significantly contribute to Braskem's sustainability commitments to reduce plastic waste, as well as furthering the company's growth strategy. By 2030, Braskem has the ambition to achieve 1 million tonnes of products with recycled material and recover 1.5 million tonnes of plastic from the environment.

Braskem adds it is working closely with its partners to launch circular PP products for specific market applications, such as packaging and automotive.

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