Covestro has launched its largest energy-efficiency project with an investment in a new steam compressor at its Dormagen site in Germany. The company said the modernisation will reduce its energy consumption in Germany by two per cent annually compared to 2025 levels.

The project is expected to save a low three-digit GWh volume of energy and more than 40,000 tonne of CO2 emissions each year. Covestro is investing a low double-digit million-euro amount in the upgrade.

The compressor will function on the principle of a heat pump. Water vapour generated during the production of TDI, a component used in flexible foam, will be raised to a higher temperature and pressure level so it can be reused in production processes instead of being released as waste heat.

The project forms part of Covestro’s broader energy-efficiency strategy for climate-neutral production. The company said it had reduced energy consumption by around 40 per cent between 2005 and 2022 and aims to consume 20 per cent less energy per tonne of product by 2030 compared to 2020.

Construction is scheduled to begin by the end of 2026, with the compressor expected to begin operations in mid-2027.