Covestro TDI Plant Modernization: Energy Efficiency Revolution and Low-Carbon Benchmark
On March 20, 2025, German materials giant Covestro announced the completion of a comprehensive modernization of its TDI (Toluene Diisocyanate) plant in Dormagen, which is now officially operational. The centerpiece of this upgrade is the installation of a new reactor weighing 150 tons and standing 20 meters tall, which recovers waste heat from the reaction process to generate steam, enabling energy recycling. Post-modernization, the plant's energy consumption has been reduced by 80% compared to traditional processes, cutting annual CO2 emissions by 22,000 tons and significantly enhancing the competitiveness of TDI production in Europe. With an annual capacity of 300,000 tons, this plant is the largest TDI production base in Europe. The use of Covestro's gas-phase technology further solidifies the company's technical leadership in the global polyurethane industry.
Covestro also announced a new energy efficiency target: by 2030, energy-related carbon emissions per ton of product will be reduced by 20% compared to 2020, laying the foundation for achieving climate neutrality in production by 2035. The German Federal Ministry for Economic Affairs and Climate Action (BMWK) provided funding for this project, highlighting the urgency of industrial green transformation driven by policy.
Global Technological Innovation: Breakthroughs in Non-Phosgene and Bio-Based Materials
Amid the wave of low-carbon transformation, TDI production technology is undergoing disruptive changes. In August 2024, China's Shaanxi Coal Group successfully developed the world's first pilot plant for non-phosgene TDI green synthesis, breaking the high-pollution constraints of the phosgene method. Lianhetech's non-phosgene XDI technology and the industrialization trial of urea-based MDI by the Chinese Academy of Sciences and Shaanxi Coal mark significant breakthroughs in China's low-carbon isocyanate production processes.
Bio-based materials are also in the spotlight: BASF's biomass-balanced MDI has been used in the commercial production of cold storage sandwich panels; Covestro and Huafon Chemical are developing bio-based MDI using plant waste; and Japan's Tosoh is producing low-carbon isocyanates through CO2 recycling technology. These innovations are driving the polyurethane industry toward a circular economy from the raw material end.
Restructuring of Production Capacity: Overseas Contraction and China's Dominance
Global TDI production capacity is rapidly shifting to China. Due to high energy costs and stringent environmental policies, overseas capacity continues to shrink:
- BASF shut down its TDI facility in Ludwigshafen, Germany, in 2023;
- Tosoh ceased TDI production at its Nanyo plant (25,000 tons/year) in the same year;
- Argentina's Petroquímica Río Tercero closed Latin America's only TDI plant in 2024.
In contrast, China, leveraging its industrial chain advantages, now accounts for nearly 40% of global TDI capacity, with Wanhua Chemical, Covestro, and BASF dominating the market. Wanhua's Fujian base plans to expand to 360,000 tons/year, and Hualu Hengsheng is preparing to build a new 300,000-ton project in Jingzhou. However, domestic production still relies heavily on the phosgene method, making the large-scale application of low-carbon technologies a key factor for future competitiveness.
Looking ahead, low-carbon and green initiatives will reshape the industry landscape:
1. Policy Drivers: EU carbon tariffs and China's "dual-carbon" goals are pushing companies to reduce emissions;
2. Technological Advancements: Non-phosgene methods, bio-based raw materials, and carbon capture technologies are accelerating commercialization;
3. Capacity Consolidation: Outdated capacity is being phased out, and companies with low-carbon advantages will dominate the market.
The modernization of Covestro's Dormagen plant demonstrates that energy efficiency improvements and enhanced competitiveness can go hand in hand. As the global polyurethane industry transitions to a circular economy, technological innovation and green production capacity will become the core engines for companies to break through and thrive.
