Envisioning a Greener World. By Tamsin Ettefagh Of Envision Plastics

Transcription

1 Envisioning a Greener World By Tamsin Ettefagh Of Envision Plastics

2 Points of Discussion A little history of HDPE Recycling Our Industry today End uses for HDPE A little bit about Envision Plastics and Color Sort Technology and sustainability Conclusions

3 Introduction and History The industry is 19 years old The first 9 years Public pressure, evolution of curbside collection and technical development of recycling plastics

4 The results were large: Recycling of HDPE grew Collections grew to 25% 25% Recycle content Other markets developed Recycling processing capacity grew

5 1997 to 2005 Industry Matured Entrepreneurs and packaging companies Consumer pressure to recycle was replaced by economic pressure. Consumer product companies decreased their usage of HDPE. Many marginal recycle processors went out of business. Business had to continually improve their efficiencies, quality, and cost structure to survive. HDPE recycling capacity dropped 230 million pounds

6 The Technical Developments: Bale Specifications Better bale breakers and grinders Sink/float Air classification Improved washing equipment Color sortation of bottles and washed flakes Improved extrusion PCR pellet specifications Trilayer blow Molding Resin blends Infrared sortation technology

7 HDPE Recycle Rates and Demand 1993 Recycling Rates (R.W. Beck Data) Millions of Annual Pounds Virgin Recycle Percent Bottles Sales Consumption Recycled Natural 1, % Pigmented 1, % Table 1

8 Assumptions

9 Potential Growth If recycle or capture rate reaches 40% * Total Feedstock Potential Growth Bottles Availability MM Lbs Percent Natural ~ ~50% Pigmented ~ ~300% * Assumes 50% of household recycle with a 70% capture rate. Table 2

10 2006 HDPE Recycling Rates R.W. Beck Data Millions of Annual Pounds Virgin Sales Recycle Consumption Percent Recycled Natural Bottles 1, % Pigmented Bottles 1, %

11 Assumptions were right mixed colored grew the most

12 Recycling Rates on Bottles Calendar Year 2005 Calendar Year 2006 Plastic Bottle Type Plastic Recycled Resin Sales [2] Recycling Rate [3] Plastic Recycled Resin Sales [2] Recycling Rate [3] HDPE Natural % % HDPE Pigmente d % % Total HDPE Bottles % % PP % % PET [4] Total Bottles % % % %

13 HIGHLIGHTS/SUMMARY for 2007 recycling rate report The total pounds collected increased by almost 18 million for the year. The total pounds reached a record high of 2,220 million pounds making the annual increase in pounds recycled 5.6% The overall plastic bottle recycling rate fell.05% to 23.8% PET increase by 102 million pounds The PET bottle recycling rate increased by 0.4% to 23.5% HDPE bottles collected increased in a period of HDPE bottle design disruption (concentrates) by six million pounds to 928 million pounds The HDPE bottle recycling rate dropped by 0.7% to 26.4% PP Recycling increased to 18 million pounds of bottles Exports of US collected HDPE bottle material rose by 15% to a total of 10% of domestically collected material

14 Top Players in Plastics Recycling HDPE PET KW Plastics 210mm Mohawk 220mm Envision Plastics 90mm Phoenix Tech. 90mm Clean Tech 50mm Clean Tech 50mm Graham 50mm Evergreen 70mm Talco 30mm Ultre Pet 40mm Merlin 30mm Merlin 20mm Berou 30mm Puretech 20mm Entropex 30mm URRC 20mm

15 Other players in HDPE & PET HDPE PET Ensley colored only 30 MM Signode strapping 50mm BlueRidge Flake only 15MM St. Jude strapping 30mm Havoline Flower Pot Maker 20MM Marglen fiber f Berou Pellets out of Canada 30MM PET Processors SOL Canada flake only 15MM Spenaco Entropex Canada colored 30mm Klockner Pentiplast Sheet producer Hite Plastics Flake only 10MM Global PET Inc. FreshPak Slip Sheets 50MM Plastrec Trex lumber mostly film 6mm bottle AERT lumber mostly film 6mm bottle MasterMark Lawn Edging 40MM Plastics Revolutions HMW mainly 6mm EVCO lawn edging 30MM Hite Plastics 10MM Flake only BB Plastics 20MM? Poly Chem. 15MM mixed colored

16 Figure 5 Domestic Recycled HDPE Bottle End Use Pallets/Crates/ Buckets 2% Lumber 9% Other/Non- Classified 1% Automotive 4% Film /Sheet 7% Non Food Bottles 43% Lawn/Garden 12% Pipe 22%

17 Table II HDPE PCR End Use Market Estimates In Millions of Pounds per year For 2004 Natural Pigmented Total Consumer Packaging Bottles Household Chemicals Health & Beauty Automotive subtotal % 27 7% % Competing Markets Pipe Film & Sheet Plastic Lumber Nursey & Garden Products subtotal % Others % Export (1) % Total (2) (1) (2) Split of 100 Million Export pound not known R. W. Beck 2003 data

18 Major End Markets by Resin Type PET- Fiber, Bottle, Sheet, Strapping, Automotive HDPE - Bottle, Pipe, Custom molded, Flower Pots, Sheet, Film, Lumber, Buckets, Carts, Pallets, Automotive PVC - Flooring LDPE and LLDPE - Lumber, internal film, modifiers HMW Pallets, Modifier PP- Battery Cases, Paint pails, Vaults, Automotive PS- Electronics, injection custom molded

19 Today Green House Gas Global Warming Wal-Mart Sustainable Packaging Score Card Sustainability Home Depot Eco Marketing Renewed interest in Recycling

20 Issues with Recycling Feed Stocks for New Packaging PET Barrier Resin, Low IV Pet Containers, PVC Shrink Sleeves, Look alike bottles with similar densities HDPE-PP, PP, barrier resins, black middle layers,caco3, PVC PET, Lack of critical mass PP barrier resin, similar densities lack of critical mass for bottles, separation at the MRF s LDPE and LLDPE Film surface area, additives, contaminants for curbside collection and rigid plastic recyclers have issues with winding up in equipment, grocery receipts, food left in bags, nylon netting and PVS Shrink wrap HMW Hazardous materials, EVOH, varying melt index s

21 Issues affecting HDPE Calcium Carbonate Colored PET Colored milk bottles Some new innovations such as barrier resins Film Growth of supply not keeping up with demand Export due to demand and lack of quality standards

22 Feed Stocks Per Resin Type PET- Bottles, X Ray Film, trim waste HDPE-Bottles, Buckets, Crates, Pallets, trim waste, Industrial, PP-Battery Cases, Cap, Industrial, Textile scrap PS Foamed cups, trim waste, electronics LDPE, LLDPE Film, Industrial HMW Barrels, totes, fuel tanks, pallets

23 Cost Drivers For HDPE Export and Domestic Market demand Millage loss due to contamination and Calcium Carbonate and colored PET Tougher environmental restrictions mainly with water discharge Energy costs including increased freight costs Quality due to Barrier resins, higher levels of contamination, and dirty bales from single stream and commingled Safety

24 The Future Automated Color sort Trend packaging changes Supply availability Better resins and new resins available Problems and Challenges

25 Started in June 2001 Bought FCR and Union Carbides Plastic Recycling Plants Upgraded and expanded the Reidsville FCR plant with integrating the Union Carbide equipment Went from a low of 36 employees and 1.8 million pounds per month to 63 employees and 5 million pounds per month Second Plant is in Chino, CA recycles 3 million pounds per month

26 Envision has enlisted expert people from the recycling plastics industry to Manage their operations. Together there are more than 50 years experience in the Plastics Industry among the upper management of Envision Envision can provide High Caliber Technical Assistance in utilizing recycled HDPE Resin

27 The Colors we see Envision can now see over 40 Million shades of color which helps us develop the colors we sell. There may be several thousand shades of a color that makes up one color we sell month in month out. Envision Sorts 45,000,000 flakes per hour Which is close to a million flakes per minute

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29 Coming in the near future

30 Where does our Feed Stocks or Supply come from? Supply contracts with MRF s s up and down the East Coast Other large MRF operators and municipalities Some industrial feed stocks from current customers Some open bid suppliers

31 HDPE PCR Customers Mainly Blow Molders of Bottles we sell to all in the top ten that do PE bottles Lawn and Garden Pipe large pipe makers, mainly corrugated Sheet Companies such as truck bed liners Film for products such as paper towel wrap and toilet paper wrap. Some injection molding and extrusion

32 Costs To Start a Plastics Recycling Plant Estimated Cost per pound for a plant located in the most efficient site 1 Ton/HR 2 Ton/HR 3 Ton/HR Reprocessing System Labor Electricity Water Chemicals Gas Landfill Maintenance Lease Extrusion Depreciation Overhead Totals Capital Investment $6,736,989 $10,737,826 $13,300,646 Note: does not include overhead, freight, packaging or material cost

33 Payback Based on.03/lb profit it would take 13 years for a one ton per hour plant 10 years for a 2 ton per hour plant 8 years for a 3 ton per hour plant

34 200 pound sample of sinkers from and HDPE recycling line scanned and sorted in the flake form under infrared technology Total kg Total 74,59 kg Speed 0,33 t/h Kg % recovered PET 44,57 59,75% PE 12,66 16,97% PET 4,09 5,48% (Colored PET) PVC 4,32 5,79% PE 2,14 2,87% (With Calcium Carbonate) PP 0,25 0,34% PS 0,10 0,13% Rest 6,46 8,66% (Probably Metals and Aluminum)

35 Conclusions Supply is not growing as fast as markets are The pounds per year output effects cost There is no quick cure for the supply There will be continued challenges facing recycling based innovative bottle designs APR Members continue to look at technology that will allow us to recycle more at higher quality

36 Closing Comments Though HDPE PCR technology and markets has matured, it continues to be a large 1 Billion pound per year industry. The HDPE PCR industry supports the continuing use of virgin HDPE consumer packaging by recycling the used bottles, thus satisfying public recycling concerns. It does this while cost effectively competing with virgin resin on price. Further cost improvements, such as recycling colorants with the use of color sorted PCR, will keep the industry strong. Envision packaging becoming a valuable commodity as opposed to a waste product. Envision,, envisioning a greener world.