The agreement marks a key step toward the commercialization of the smart pyrolysis technology for the recycling of rigid polyurethane foam.
The plant, with an annual capacity of 2,000 tons, will produce high-purity regenerated aniline for MDI production.
The carbon footprint of MDI produced from regenerated aniline can be reduced by up to 40%.
The plant is set to begin operations in 2028.
March 10, 2026 – Material manufacturer Covestro and Fraunhofer UMSICHT, the Fraunhofer Institute for Environmental, Safety, and Energy Technology, signed a contract to jointly operate a pilot pyrolysis plant with an annual processing capacity of 2,000 tons of rigid polyurethane foam waste. The plant is set to start operations in 2028. The signing of this agreement marks an important milestone in the scaling up of this technology, which can convert insulation waste from the appliance and construction industries into high-purity regenerated aniline, used for MDI (methylene diphenyl diisocyanate) production. The MDI produced from regenerated aniline meets the same purity standards as traditional MDI, while its carbon footprint can be reduced by up to 40% compared to conventional fossil-based raw material production routes.
Dr. Markus Dugal, Head of Process Technology at Covestro, stated: “This agreement with Fraunhofer UMSICHT is a decisive step in industrializing our smart pyrolysis technology. This collaboration combines our chemical and technological expertise with Fraunhofer UMSICHT’s process engineering capabilities and resources, further scaling up the application of this technology. It demonstrates the chemical recyclability of waste polyurethane materials and could fundamentally change the way we source raw materials for MDI production. By recovering high-value molecules from waste, we are turning the circular economy from a vision into reality, while significantly reducing the carbon footprint of our products.”
Under the agreement, Fraunhofer UMSICHT will leverage its expertise in pyrolysis research and existing chemical recycling infrastructure to implement and scale Covestro’s proprietary smart pyrolysis process. The pilot plant will recycle 2,000 tons of waste polyurethane foam annually. The resulting aniline will be used to produce insulation material for approximately 200,000 refrigerators. The new plant is planned to begin operations in mid-2028, focusing primarily on processing rigid PUR/PIR foam waste from discarded polyurethane insulation materials. This technology is specifically designed for rigid foam, which is typically difficult to recycle due to its crosslinked molecular structure.
Towards Industrial Application
Professor Manfred Renner, Head of Fraunhofer UMSICHT, commented: “This project is the result of years of in-depth joint research. Not only are we verifying the technological feasibility, but we are also actively advancing industrial application. This project builds on our research and technological development in chemical recycling and downstream processing. The pilot plant will enable us to optimize process parameters at scale and provide enough material for subsequent processing tests and market development.”
The smart pyrolysis process can produce aniline with a purity of around 99%, suitable for the production of regenerated MDI that meets the same quality standards as traditional MDI.
A Critical Solution for the Rigid Polyurethane Foam Market
This technological progress is particularly significant because, in Europe, driven by the increasing demand for energy-efficient insulation materials in the building and refrigeration sectors, the MDI market for rigid polyurethane foam alone is expected to grow from 1.4 million tons in 2025 to 1.9 million tons in 2035. For example, EU regulations and market requirements are increasingly demanding scalable end-of-life solutions for PUR/PIR rigid foam, presenting significant challenges to the industry. The chemical recycling technology developed by Covestro and Fraunhofer UMSICHT provides a viable development path by breaking molecular bonds to recover valuable raw materials that would otherwise be wasted.
The development of this technology is based on extensive research from the EU-funded flagship project “CIRCULAR FOAM.” Coordinated by Covestro and involving Fraunhofer UMSICHT and 23 other European partners, the project has successfully completed laboratory and small-scale factory verification. The construction of the smart pyrolysis pilot plant marks a crucial step toward the commercialization of this technology.
