Covestro Invests in TDI Production

Covestro is investing in the modernization of its production facility in Dormagen to further strengthen the sustainability and competitiveness of TDI (toluene diisocyanate) production for flexible foam manufacturing in Europe, with investment in the mid to high double-digit million Euro range through 2025. The facility came into operation in early 2015 and is considered one of the world's most advanced TDI production plants due to its use of gas-phase technology developed by Covestro. The work will include the installation of a modern reactor that will enable reaction energy to be used for energy-efficient steam generation in the future. The modernization will significantly increase the facility's energy efficiency and thereby reduce CO2 emissions. After modernization, the facility will consume up to 80 percent less energy compared to conventional processes for TDI production, and greenhouse gas emissions will be reduced by 22,000 tons annually. This not only makes an important contribution to the company reaching its climate targets and preserving European TDI production in the face of sharply rising energy costs, but also improves the sustainability performance of customer industries. The first phase of the project has been successfully completed with the installation of equipment at the facility. All other measures will be implemented gradually through spring 2025. This will ensure continuous TDI supply to customers. "We want to continue growing in Germany and advance the transformation to climate-neutral production. However, the general conditions, particularly high energy prices, are making it increasingly difficult for us to make such investments," says Dr. Thorsten Dreier, Member of the Board of Management and President responsible for Technology at Covestro. "Policymakers must finally take effective measures to restore Germany's competitiveness in terms of energy prices and provide a reliable foundation for industry's climate-neutral transformation." As Europe's TDI hub, the TDI facility in Dormagen has an annual capacity of 300,000 tons. It uses gas-phase technology developed by Covestro, which requires up to 60 percent less energy and up to 80 percent less solvent compared to conventional processes even before modernization. The current investment will significantly further increase the facility's efficiency and thus its sustainability. TDI is an important raw material for soft foams that provide comfort in, for example, mattresses, upholstered furniture and car seats. This material will continue to play an important role for Covestro and processing industries in the future. "We have Europe's largest TDI production facility in Dormagen, which means it plays a central role in reliable supply to our customers in the region. We are now continuing to adapt ourselves to their needs on an ongoing basis. This investment not only underscores our commitment to the European market, but also enables our customers to further reduce their indirect CO2 emissions as they develop climate-neutral and circular products for their consumer markets. At the same time, this investment also underscores our commitment to playing a leading role in climate protection and circular economy together with our partners across the value chain," says Dr. Christine Mendoza-Frohn, Head of Sales for Performance Materials EMEA and LATAM. As a company, Covestro is aligning itself entirely with the circular economy. Along this path, the company has set the goal of achieving operational climate neutrality by 2035. Increasing the efficiency of existing production processes is an important lever for this. From 2005 to 2020, Covestro succeeded in reducing specific energy consumption (that is, energy consumption per ton of product produced) by approximately 35 percent. By 2035, the specific primary energy demand of the three NRW facilities will be reduced by approximately 25 percent compared to 2020 through targeted energy management. Covestro targets primary energy savings of approximately 1,100 GWh annually from 2035 onwards. This corresponds to the annual consumption of more than 50,000 average German households.* Nearly half of this potential will be realized in the next five years. Source