The use of recycled, circular chemicals, such as those obtained from used plastics, for the production of new plastics is part of a circular economy that not only reuses used plastics, but also reduces thecarbon footprint.
Plastics producer Covestro and Encina, a US-based manufacturer of circular chemicals, have signed a long-term supply agreement for chemically recycled raw materials from used plastics. Encina will supply Covestro with benzene and toluene as soon as the necessary production plant is completed, which is expected to be at the end of 2027.
Benzene is used, among other things, to synthesize phenol and acetone - raw materials for the production of polycarbonate plastics used in the automotive, electronics and IT industries.
Benzene and toluene are also important raw materials for the production of methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI), key components in the manufacture of rigid and flexible polyurethane foams used in household appliances and building insulation.
Encina's proprietary catalytic technology enables the production of circular raw materials with a high yield.
