Covestro and Fraunhofer UMSICHT sign contract for groundbreaking smart pyrolysis recycling pilot plant

​​​​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% lower carbon footprint compared to conventional fossil-based production routes.

• ​​​​​​Agreement marks decisive step toward commercialization of smart pyrolysis for polyurethane rigid foam recycling
• ​2kt per year facility to produce high purity recycled aniline for MDI production
• Resulting MDI comes with up to 40% improved carbon footprint
• ​Plant operational from 2028 onwards​​​​​

"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 refrigerators. 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 1,400 kt in 2025 to 1,900kt 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.​​​