For Encina, founded in 2016, it is the second major contract, having previously signed both a memorandum of understanding and offtake agreement with Americas Styrenics in 2022 for the supply of circular feedstocks from its facilities. However, it is Covestro’s first foray into the chemically recycled materials space, emphasised Frank Doerner, leading the procurement of Strategic Commodities at Covestro, during an online interview with Sustainable Plastics – an interview that also included Christine Mendoza-Frohn, EVP Performance Materials Sales EMEA & LATAM Performance Materials at Covestro, and David Roesser, CEO at Encina.
Covestro, he said, had previously been active in the biobased and biomass arena. “But this is the first time we’ve ventured into chemically recycled plastic end-of -life plastic based materials.” The agreement follows a period of negotiations that stretches back two-and-a-half years.
Asked why Covestro chose to work with Encina, Doerner explained that there were various good reasons to do so. “For one thing, it's a one stop shop, not a complex supply chain for us. The whole solution is in one hand. Also, they have documented proof that the technology actually works. It is not just a concept. Basically, we’re purchasing in spec material.”
Also important was the fact that the process addresses two main pain points in the plastics discussion: it is based on recycling and results in a reduction of the CO2 footprint. “As well, the high yield is very convincing,” added Christine Mendoza-Frohn.
Encina achieves this using an approach that differs from its rivals in the field. The company has a team that is responsible for actively sourcing feedstocks - end-of-life plastics that would otherwise be sent to landfills or incinerated. It also has an engineering team to develop these into the products the company produces.
“Also, our conversion is different than a lot of others that are doing pilots,” said David Roesser. As he observed, many others are taking plastics, heating them up to obtain pyro-oil, which then goes into another cracker to be made into chemicals.
“We do it all in one step. We use a plastics fluidised bed cracking unit - a typical cracking unit that a large oil company would use. It’s a similar technology but modified for plastic. We also use a similar catalyst, but it's been modified for plastics and for turning these into high yield aromatic products. It is very unique right now in the industry. I don't believe anybody else is doing this.”
The process is more efficient and environmentally friendly, as it enables circularity as well as lower greenhouse gas emissions and a reduced carbon footprint.
Encina currently has an ISCC+-certified product development unit in San Antonio that it has used to iron out any wrinkles in the technology in terms of char and catalyst use, according to Roesser. The company is in the process of building its first commercial-scale facility in Township, Pennsylvania that is scheduled to go into production by the end of 2027. Encina is also moving ahead with plans for a plant down in the Gulf Coast of the US. The company plans to obtain ISCC+ certification for all future facilities, as well.
“And it’s because of the long-term nature of the project that we view this agreement with Covestro as more of a partnership than a simple supply contract. They have strategic vision, have shown commitment and support and are in my view, one of the companies that actually walks the talk,” said Roesser.
The sustainable BTX-aromatics supplied by Encina will be used by Covestro to produce more sustainable TDI, MDI and polycarbonate – all materials using benzene or toluene. The chemical company sells into industries such as building and construction, mattrasses and soft furniture, and automotive. For some of its customers, recycled products are needed, for example to fill a recycled content quota; for other the decarbonisation aspect may be more important.
“It is important to be able to offer a comprehensive portfolio to meet the needs of all customers and value chains. This technology fits very well with that ambition, open loop recycling was our last missing offering,” said Mendoza-Frohn.
Covestro will use the coming years to build momentum amongst its customers for the new, more sustainable materials it will be producing based on Encina’s products.
“We will be collaborating first with customers in partnership who share our vision,” she added. “We will develop projects with these pioneering customers - manufacturers of insulation, for example - that generate awareness for these products at their customers – the builders. Lighthouse projects like a whole construction, to attract the attention of the legislative authorities in order to gain more support from governments, as well as ultimately to create followers amongst further value chain players through which we can drive scale. Our aim is to create an understanding amongst these players and consumers - architects, even students, for example in the case of insulation - and to do the same for our customers in the mattress and automotive industries.”
“Right now, everyone is talking about being green,” concluded Covestro’s Frank Doerner. “But we need solutions. And that’s what this partnership provides, a true solution without compromise.”