BioBTX (Covestro-backed) to produce BTX aromatics from mixed plastic waste

In August 2026, Dutch circular chemistry technology developer BioBTX built the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals. The facility will use BioBTX’s proprietary ICCP (Integrated Catalytic Cracking Process) technology to produce valuable chemical building blocks from waste that would otherwise be incinerated or sent to landfill. Covestro has also been a shareholder and strategic partner of Groningen-based BioBTX since 2024, with a mid-single-digit million-euro investment.

The facility was constructed at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create around 35 new jobs. BioBTX’s ICCP technology uses catalytic pyrolysis to process mixed plastic waste and convert it into aromatic oil containing benzene, toluene and xylenes (BTX). These chemicals also serve as essential building blocks for a wide range of applications, including coatings, pharmaceuticals and performance materials. Furthermore, the resulting aromatics can also be used to produce Covestro’s MDI and TDI isocyanates. These materials are used in polyurethane applications such as flexible foam for mattresses and rigid foam for refrigerator insulation.

Once operational, the plant is expected to recycle approximately 20,000 tons of plastic waste each year. At the same time, it is projected to produce around 10,000 tons of renewable aromatic oil and 8,000 tons of sustainable by-products annually. Importantly, the process could significantly reduce the environmental impact of aromatic chemical production. Compared with conventional fossil-based BTX production, BioBTX expects its technology to reduce greenhouse gas emissions from the resulting chemical building blocks by 70-80%.

Impact on the Chemical Market

For BioBTX, the project represents the culmination of a 14-year development journey that began with an idea in 2012 and progressed through laboratory and pilot-scale development to commercial execution. Ton Vries, who is the Co-founder and CEO of BioBTX, stated that the milestone represents a major step towards the company’s goal of enabling circular chemistry and developing a fully sustainable aromatic plant.

The first commercial facility will focus on mixed plastic waste; the company’s ICCP technology is feedstock-flexible. Consequently, BioBTX could potentially apply the technology to other feedstocks in the future, including biomass. The project thus marks a significant step towards producing aromatic chemicals from alternative feedstocks while reducing dependence on conventional fossil-based raw materials.

Impact on the Waste Recycling Services Market

The global waste recycling services market size is calculated at USD 68.87 billion in 2025 and is predicted to increase from USD 72.52 billion in 2026 to approximately USD 114.94 billion by 2035, expanding at a CAGR of 5.26% from 2026 to 2035.

According to Precedence Research, the growing burden of various waste materials owing to the high volume of economic activities across the globe has resulted in a huge demand for waste recycling services. Waste recycling services have become an important part of the urban infrastructure that helps to protect both human health and the environment. The accumulation of plastic waste is a major issue that results in marine pollution. Rapid urbanization and rapid industrialization across the globe have resulted in the high consumption of various hazardous chemicals that generate huge amounts of waste.

The rising agricultural production and rising amount of wastage from the agro-industries are also expected to further drive the demand for waste recycling services all across the globe. The growing investments made by the government and corporate sector to promote sustainability are also helping to fuel the demand for waste recycling services. The growing government initiatives to reduce wastage and increasing emphasis on the recycling of waste materials are fueling the growth of global waste recycling services.

Impact on the Waste Management Market

The global waste management market size is estimated at USD 1.28 trillion in 2025 and predicted to increase from USD 1.37 trillion in 2026 to approximately USD 2.44 trillion by 2035, growing at a CAGR of 6.66% from 2026 to 2035.

According to Precedence Research, the main growth drivers for the global waste management market are increasing awareness of circular economy practices, the introduction of stricter environmental regulations, and advances in technology related to waste treatment. Waste management is an important aspect of most sectors, including municipal solid waste, industrial waste, and hazardous waste, all of which are prevalent in society today and in the future.

As concerns regarding sustainability, resource conservation, and environmental protection continue to rise, waste management solutions are becoming increasingly important for recovering valuable materials, reducing landfill dependence, and minimizing environmental impacts. Furthermore, efficient waste management systems contribute significantly to public health, sustainable development, and long-term resource recovery, making them an essential component of modern infrastructure and economic growth.

Expert Opinion

According to Dr. Thorsten Dreier, Chief Technology Officer at Covestro, the project represents an important step in demonstrating the technology at industrial scale. He also highlighted on the importance of processing mixed plastic waste rather than relying solely on highly sorted waste streams. This approach could help expand chemical recycling and support the transition towards a more circular plastics and chemicals industry.