Covestro and Fraunhofer UMSICHT Partner to Build Pilot Plant for Smart Pyrolysis Recycling of Polyurethane Foam

Covestro and Fraunhofer UMSICHT Partner to Build Pilot Plant for Smart Pyrolysis Recycling of Polyurethane Foam

(IN BRIEF) Covestro and Fraunhofer UMSICHT have signed an agreement to develop a pilot plant for smart pyrolysis technology designed to recycle rigid polyurethane foam waste from appliances and construction materials. The facility, expected to begin operations in 2028, will process about 2,000 tonnes of waste foam annually and convert it into high-purity recycled aniline used in the production of MDI. The recycled material will meet conventional quality standards while reducing the carbon footprint of production by up to 40 percent. The project builds on earlier research conducted within the EU-funded CIRCULAR FOAM initiative and aims to demonstrate a scalable chemical recycling pathway for polyurethane insulation materials, a growing market driven by demand for energy-efficient buildings and refrigeration systems.

(PRESS RELEASE) LEVERKUSEN, 11-Mar-2026 — /EuropaWire/ — Covestro has entered into an agreement with the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT to advance the development of smart pyrolysis technology for recycling rigid polyurethane foam waste. The partnership will establish and operate a pilot plant capable of processing around 2,000 tonnes of material per year, with operations expected to begin in 2028.

The facility represents a key step toward commercializing chemical recycling solutions for rigid polyurethane insulation materials used in appliances and construction. Through the smart pyrolysis process, waste foam can be converted into high-purity recycled aniline, a critical chemical feedstock used to produce methylene diphenyl diisocyanate (MDI). The recycled MDI produced from this process will match the purity and quality standards of conventional materials while delivering up to a 40 percent lower carbon footprint compared with traditional fossil-based production routes.

Dr. Markus Dugal, Head of Process Technology at Covestro, described the agreement as a major milestone in scaling the company’s recycling technology toward industrial deployment. He noted that the collaboration combines Covestro’s expertise in chemical technology with Fraunhofer UMSICHT’s process engineering capabilities and infrastructure. The goal is to demonstrate that polyurethane materials at the end of their lifecycle can be chemically recycled, enabling valuable molecules to be recovered and reused rather than discarded.

Fraunhofer UMSICHT will use its experience in pyrolysis research and its existing chemical recycling facilities to help scale Covestro’s proprietary process to pilot-plant level. The planned facility will have the capacity to recycle approximately 2,000 tonnes of end-of-life rigid foam annually. The resulting recycled aniline could be used to manufacture insulation materials equivalent to those used in roughly 200,000 refrigerators.

The plant is scheduled to begin operations in mid-2028 and will primarily process rigid polyurethane and polyisocyanurate foam waste from insulation products that have reached the end of their service life. These materials are considered particularly difficult to recycle because their crosslinked molecular structures make conventional recycling approaches ineffective.

Professor Manfred Renner, Head of the Fraunhofer UMSICHT institute, said the project reflects several years of joint research between the partners. He emphasized that the initiative aligns with Fraunhofer’s goal of translating scientific research into industrial applications. The pilot plant will serve as a bridge between laboratory research and large-scale production, demonstrating the viability of the technology in real operational conditions.

Dr. Alexander Hofmann, Head of Thermochemical Conversion Technologies at Fraunhofer UMSICHT, added that the project will allow researchers to refine and optimize the pyrolysis process at larger scale. It will also generate sufficient volumes of recycled materials for downstream processing tests and further market development.

The smart pyrolysis process produces aniline with a purity level of approximately 99 percent, allowing it to be used directly in the production of recycled MDI without compromising product quality.

The development comes at a time when demand for rigid polyurethane insulation continues to increase, particularly as energy efficiency requirements for buildings and refrigeration systems become more stringent. In Europe, the market for MDI used in rigid foam insulation is projected to grow from about 1.4 million tonnes in 2025 to approximately 1.9 million tonnes by 2035.

At the same time, regulatory frameworks and sustainability goals are driving the need for scalable end-of-life solutions for polyurethane materials. The chemical recycling approach developed by Covestro and Fraunhofer UMSICHT offers a potential pathway to recover valuable raw materials from waste streams by breaking down complex molecular structures and reusing them in new production cycles.

The pilot plant builds on research conducted within the CIRCULAR FOAM project, a European Union-funded initiative coordinated by Covestro and involving Fraunhofer UMSICHT and 23 additional partners across Europe. Following successful laboratory and small-scale demonstrations, the new facility represents the next step toward bringing the technology to commercial scale.

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.

Media Contact:

Carmen Behrens
Corporate Channels & Media Relations
carmen.behrens@covestro.com
+ 49 173 3849677

SOURCE: Covestro