Covestro announced its largest energy efficiency project to date with the installation of a new steam compressor at its Dormagen site in Germany. Through this modernization initiative, the company aims to reduce its annual energy consumption in Germany by nearly two percent compared to 2025 levels. The large-scale project is expected to save a low three-digit gigawatt-hour (GWh) volume of energy annually while cutting more than 40,000 tons of CO2 emissions every year. According to the company, the emissions reduction is equivalent to the annual CO2 footprint of a town with around 5,000 residents or nearly 20,000 passenger cars. Covestro is investing a low double-digit million-euro amount in the project as part of its broader sustainability and climate-neutral production strategy.
Advanced Steam Compressor to Recover Waste Heat
The compressor will operate using the principle of a heat pump to recover and reuse waste heat generated during production processes. During the manufacturing of TDI — a key raw material used in flexible foam production — water vapor is generated as a byproduct. Although steam is required for multiple industrial operations, the steam produced during TDI manufacturing is not sufficiently hot for reuse and is often released into the environment as waste heat. The new compressor will increase the steam’s temperature and pressure, enabling Covestro to reintegrate it into production processes. As a result, the company will significantly improve energy utilization and reduce unnecessary heat loss.
Energy Efficiency Central to Covestro’s Sustainability Goals
Thorsten Dreier, CTO of Covestro emphasized the importance of energy efficiency in achieving climate neutrality and advancing the circular economy. “Energy efficiency is a key lever for transforming our production towards climate neutrality and a circular economy. The principle is: the less energy we need, the better,” he said. He further noted that Covestro continues to adopt modern and innovative process technologies to make production operations more sustainable and energy efficient. Between 2005 and 2022, Covestro reduced its overall energy consumption by nearly 40 percent. Looking ahead, the company plans to consume 20 percent less energy per ton of product produced by 2030 compared to 2020 levels.
Part of a Broader Decarbonization Strategy
The Dormagen compressor project forms a key part of Covestro’s long-term energy efficiency master plan aimed at driving climate-neutral manufacturing. Andreas Doerfer, Global Energy Excellence Manager highlighted that improving energy efficiency not only lowers carbon emissions but also reduces operational energy costs. “To achieve our energy efficiency target, we must utilize all available options for using the waste heat generated in our processes to manufacture our products,” he said. The company continues to identify additional opportunities to optimize energy use and improve process sustainability across its global operations.
Strengthening the Future of the Dormagen Site
The steam compressor project follows the installation of an energy-efficient reactor at Covestro’s TDI plant last year, further strengthening the long-term competitiveness and sustainability of the Dormagen facility. According to Philip Bahke, Head of Operations in Dormagen and North
Rhine-Westphalia, the investment underlines the company’s long-term commitment to the site and the region. As per the Construction of the compressor is scheduled to begin by the end of this year, while commercial operations are expected to start in mid-2027.






























