Materials manufacturer Covestro and the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT have signed a contract to operate a 2kt per year pilot plant for smart pyrolysis of rigid polyurethane foam waste. The plant will be operational by 2028. The agreement marks a significant milestone in scaling up the technology to convert insulation waste from appliance and construction into high-purity re-aniline for the production of MDI (methylene diphenyl diisocyanate). The resulting MDI meets the same purity standards as conventional MDI with up to 401 percent lower carbon footprint compared to conventional fossil-based production routes.

"The contract with Fraunhofer UMSICHT is a decisive step towards industrializing our smart pyrolysis technology," said Dr. Markus Dugal, Head of Process Technology of Covestro. "This partnership combines our chemical and technology expertise with Fraunhofer's process engineering capabilities and assets to scale a technology that is able to prove chemical recyclability of end-of-life Polyurethane materials and that could fundamentally change how we source raw materials for MDI production. By recovering high-value molecules from waste streams, we're turning the circular economy from vision into reality while significantly reducing the carbon footprint of our products."

Under the agreement, Fraunhofer UMSICHT will draw on its pyrolysis research expertise and existing chemical recycling infrastructure to implement and scale up Covestro's proprietary smart pyrolysis process. The pilot plant has an annual capacity to recycle 2kt of end-of-life foam per year. The resulting amount of aniline could be used to produce insulation for roughly 200,000 refrigerators2 . The new plant is scheduled to begin operations in mid-2028 and will process rigid PUR/PIR foam waste primarily from end-of-life insulation PU materials. The technology specifically targets rigid foam because it is notoriously difficult to recycle due to its crosslinked molecular structure.

Moving towards industrial implementation

"This project represents the culmination of several years of intensive joint research," explains Prof. Dr.-Ing. Manfred Renner, Head of Institute Fraunhofer UMSICHT. “It’s perfectly in line with Fraunhofer’s mission to bridge the gap between research and application: we are not just demonstrating technical feasibility but actively moving towards industrial implementation.” Dr. Alexander Hofmann, Head of Thermochemical Conversion Technologies at Fraunhofer UMSICHT adds: "The project is underpinned by our own research and technology developments in chemical recycling and downstream processing. The pilot plant will allow us to optimize process parameters at scale and provide sufficient material for further processing tests and market development."

The smart pyrolysis process yields aniline with approximately 99 percent purity, suitable for producing recycled MDI that meets the same quality standards as conventional MDI.

Rigid foam market in need of closed-loop solutions

This development is particularly important as the MDI market for rigid foam is projected to grow from 1400 kt in 2025 to 1900kt in 2035 in Europe alone, driven by increasing demand for energy-efficient insulation in buildings and refrigeration. EU regulations and market requirements, for example, increasingly request scalable end-of-life solutions for PUR/PIR rigid foam, posing a significant challenge for the industry. The chemical recycling technology developed by Covestro and Fraunhofer UMSICHT offers a viable path forward by breaking molecular bonds to recover valuable raw materials that would otherwise be lost.

The technological development builds on extensive research within CIRCULAR FOAM, an EU-funded flagship project coordinated by Covestro with Fraunhofer UMSICHT and 23 other partners across Europe. After successful laboratory and mini-plant scale demonstrations, the smart pyrolysis pilot plant represents the critical next step toward commercial implementation.

For more info visit the Covestro Solutions Center

About Covestro: 

Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself. 

The company is geared completely to the circular economy. In addition, Covestro aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group’s Scope 3 emissions are also set to be climate neutral by 2050. Covestro generated sales of EUR 12.9 billion in fiscal year 2025. At the end of 2025, the company had 46 production sites worldwide and employed approximately 17,600 people (calculated as full-time equivalents). 

About Fraunhofer: 

With nearly 32,000 employees across 75 institutes the Fraunhofer-Gesellschaft, headquartered in Germany, is one of the world’s leading organizations for applied research. 

The Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT supports industry and society in the transition to a climate-neutral and circular economic system. Its research focuses on Circular Economy, Green Hydrogen, Carbon Management and Local Energy Systems. 

The Sulzbach-Rosenberg branch of Fraunhofer UMSICHT develops process engineering solutions for the use of alternative carbon sources such as plastic waste, composite materials, and biogenic waste and residues, to produce sustainable products and intermediates, including next-generation biofuels, basic chemicals, and functionalized biochars. The institute also conducts research on low-emission combustion technologies and CCU solutions, as well as on high-temperature heat storage and the provision of sustainable process heat. 

With a focus on process and plant engineering, the institute supports its clients and partners from the initial project idea through pilot plants and demonstrators all the way to market launch. 

Forward-Looking Statements 

This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Source: covestro.com