German engineering plastics producer Covestro (Leverkusen; www.covestro.com) said it has reached a long-term agreement for US-based Encina (The Woodlands, Texas; www.encina.com) to provide it with chemically recycled, circular feedstock – predominantly BTX/P – derived from post-consumer plastics.

The German company said this is its first major procurement agreement involving chemically recycled, circular-based raw materials and represents a major milestone in its path to circularity. 

At the same time, Covestro said the supply deal will help it to reduce Scope 3 emissions and manufacture more sustainable end-products. The resin maker seeks to become climate neutral (Scope 1 and Scope 2) by 2035.

The focus of the deal is to be on benzene and toluene, which Encina intends to produce in its new world-scale US production facility for ISCC Plus-certified circular chemicals set to go onstream in Point Township, Pennsylvania, at the end of 2027. 

Both chemicals are key raw materials in Covestro’s manufacturing processes for MDI and TDI, which it uses to produce rigid and flexible polyurethane foams. Benzene is also a feedstock for phenol and acetone used to make polycarbonates such as the company’s Makrolon brand.

According to Encina, its proprietary catalytic technology produces circular feedstock with a lower carbon footprint compared to those based on fossil fuels and an exceptionally high yield.

Encina CEO David Roesser said the agreement with Covestro represents the beginning of what the Texas firm hopes will be a long-standing partnership.