Industry

Pioneering circular solutions to achieve our goal of full circularity

To build a climate-resilient future, construction must go circular. We are supporting this shift through our customers' proven mechanical PU foam recycling. Additionally, we collaborate with partners to develop innovative chemical recycling technologies – helping reduce waste, conserve resources and maintain material performance.
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Mechanical Recycling: Transforming material leftovers into valuable resources

Mechanical recycling of rigid PU insulation boards is already a reality. Thanks to trusted partners, end-of-life foam boards can be collected, shredded and processed into new high-quality boards – while maintaining the material’s durability and thermal performance. This reduces the need for virgin raw materials and helps cut construction waste significantly.

One example: our partner puren transforms recycled PU into robust insulation boards, demonstrating how circularity and product quality can go hand in hand.

Closing the loop on PU insulation boards through mechanical recycling.
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Mechanical Recycling of PU insulation boards

Chemical recycling: unlocking PUR/PIR foams circularity at scale

With our breakthrough smart pyrolysis technology, we are advancing chemical recycling in collaboration with Fraunhofer UMSICHT. This innovative process breaks down end-of-life PU rigid foams at the molecular level, converting them into high-purity raw materials such as re-aniline (approx. 99% purity). These can be used to produce recycled MDI with performance comparable to virgin materials – enabling true circularity without compromising quality.

Alongside near-virgin material quality, smart pyrolysis significantly reduces environmental impact. Life cycle assessments show that this approach can reduce CO₂ emissions for aniline by up to 80% compared to fossil-based production – contributing to a reduced carbon footprint for MDI and insulation materials, largely applied in industries, like appliances and construction.

Smart pyrolysis represents a paradigm shift for our industry. We're not just recycling foam waste, we're fundamentally reimagining how construction and appliance materials can become truly circular. 

Bernd Hennig

Head of Trading Cluster MDI EMEA, Covestro

From lab to reality: Scaling for industrial impact

The technology has proven its effectiveness from laboratory bench to mini-plant scale across both construction and appliance waste streams. The next milestone: a pilot plant at Fraunhofer UMSICHT with 2,000 tons annual capacity, planned for 2028, to demonstrate industrial-scale viability and pave the way for commercial implementation. 

Building on proven foundations: The Circular Foam project

The development of smart pyrolysis builds on groundwork laid by the Circular Foam project¹ – an EU-funded collaboration with 22 partners from nine countries.

Within this initiative, processes such as chemolysis and pyrolysis were explored to recover valuable raw materials from PU foams. Together with partners including RWTH Aachen University, ETH Zurich, BioBTX and the University of Groningen, we helped lay the groundwork for scalable chemical recycling.

¹ Circular Foam (circular-foam.EU)

At a glance: how circularity becomes reality

Key Benefits

  • Waste with potential: Rigid PUR/PIR foams are collected, shredded and recycled into new insulation boards.
  • Virgin-quality recycling: Smart pyrolysis transforms foam waste into 99% pure re-aniline for high-performance applications.
  • Carbon reduction: Up to 80% lower CO₂ emissions compared to fossil alternatives.
  • Scalable technology: Pilot plant development paves the way for commercial implementation.
  • Circularity in Europe: Covestro works with 22+ partners across Europe on scalable recycling methods.
  • Local collaborations: Regional partnerships with waste collectors support reliable material return.


Circularity in construction is not a vision – it’s happening right now. Learn more about our commitment to circularity.

Read more about circularity & our CQ products!

  • A more sustainable high-rise building that integrates gardens into its façade.
    Story

    Embodied carbon reduction I Building the next stage of sustainability

    Reduce embodied carbon in the life cycle of buildings with PU/PIR insulation materials. Learn more now!

  • Laboratory setup with researcher holding a flask.
    Story

    Smart Pyrolysis: Chemical Recycling for PU Rigid Foam

    Covestro and Fraunhofer UMSICHT breakthrough: Smart pyrolysis transforms PU rigid foam waste (PUR/PIR) into high-purity re-aniline, enabling circular MDI production. Learn more.

Explore our other essential areas:

 1 Emissions reduction based on internal LCA calculations stages A1-A3 (cradle-to-gate) according to the EN15804+A2 standard using a mass balance approach. 

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