Flexible Film Packaging Diversion Op6ons. Joseph Hall CPIA March 27, 2013

Transcription

1 Flexible Film Packaging Diversion Op6ons Joseph Hall CPIA March 27, 2013

2 Ra6onale for the Study Change the dialogue Inform decision making Study partners: CIF CPIA SO Project team: Reclay StewardEdge Resource Recycling Systems Moore Recycling

3 Examined: Project Scope Film and mula- layer packaging composiaon and trending Current & future reprocessing markets SorAng technologies CollecAon and processing methodologies LCA and alternaave designs Energy Recovery

4 Defining Film <10 mils and bags 85% plasac Focused on packaging films categorized as: PE carryout bags PE Film Biodegradable Laminates - Beverage Laminates /Other & Bags

5 The Issue

6 The Changing Container Stream

7 Technical Challenges

8 Urban Areas are Challenging Municipality Collec6on HH Served Marketed Film (tonnes) kg PE / HH Muskoka District Northumberland County Quinte Waste Solu6ons Curb & Depot Curb & Depot Curb & Depot 47, , , Niagara&Waterloo Regions Curbside 381, Hamilton Curbside 210, Peel Region Curbside 411,

9 Compe6ng System Drivers Pressure to: - Control costs - Add materials - Produce quality products

10 Film Diversion is in its Infancy Ontario Residen6al Film Type Genera6on (tonnes) Recycling (tonnes) Recycling Rate Polyethylene carryout bags 14,900 2,400 16% Polyethylene film 37,400 2,800 7% Biodegradable film 250 Negligible 0% Plas6c laminates beverage 440 Negligible 0% Laminated/Other plas6c film and bags 34,700 Negligible 0%

11 Key Packaging Trends Results tend to be market specific Stand up pouch growth projecaons for 2016 ranged from % Changes such as resin switching and packaging design impacts total consumpaon Growth projecaons for biodegradables have been moderated ConAnued growth in mula- laminates is expected over single resin films

12 Marke6ng Capacity

13 Markets Overview Approx 50% reprocessed domesacally in % of domesac capacity used higher film grades No need for wash lines Ontario recovered film used primarily for new film and sheet US recovered film used for composite lumber MulA- laminates are considered contaminaaon Disposed or used for low value applicaaons

14 Markets Overview (Cont) >14 reclaimers reported plans for upgrades to equipment and/or capacity Reclaimers want specific grades Market prices conanue to reflect quality: Commercial LDPE: $440 $529/tonne Mixed PE: $154 $276/tonne Curbside: <$25 $66/tonne

15 Markets Overview (Cont) Curbside film recycling costs are greater than market value Chinese export market is changing No projected future growth Demand for lower quality film grades is expected to decline Energy recovery will remain a key player in this market

16 Depot Collec6on Model

17 Depot Collec6on Muni depot - commercial depot 80% of costs is labour Commercial depot costs depend on backhaul allocaaon

18 Curbside Collec6on Model

19 Curbside Collec6on $10/tonne incremental impact (1-2% of total load) AnAcipate a contaminaaon level of 33-45% SensiAve to the # of stops ($160 $270/mt) Provision of collecaon bags ($500 $1000/mt)

20 MRF Processing Op6ons Manual sortaaon Air separators Film grabbers OpAcal sorang RoboAc sorters

21 Processing Conclusions No cost effecave means of sorang PE and non- PE films idenafied Two stream systems opaons: Vac systems or air separators Single stream: Pre- sort

22 MRF Processing Costs % Bagged Film Annual Capital / tonne Labour / tonne O&M / tonne Cost / tonne 0% Bags- in- bags 50% Bags- in- bags 90% Bags- in- bags

23 Compara6ve System Cost PE and ALL film Recovery Scenario Annual Tonnes Collection Cost (millions) Processing Cost (millions) Market Value (millions) Net Cost (millions) Net Cost per Tonne depot on- site baling 10,084 depot loose back- haul 10,084 curbside low recovery 10,084 curbside high recovery 20,168

24 Recovery OpAons Recovery Market Typical Specifica6on Delivered Value (per tonne) Pyrolysis mixed with rigid plasacs. PVC 10-15%. 1 PET not desired. No metallized film. $0 to $40 GasificaAon Engineered Fuel (Pellets) None. SeparaAon of film from solid waste is not required. mixed with contaminated paper. No PVC or metallized film above incidental levels. - $75 to - $85 unknown to - $85 Industrial Uses No PVC. Specs vary among industry types $0 to - $40 (e.g., cement kilns accept metallized film; others may accept plasacs/paper mixtures). Energy- from- Waste None. - $110 to - $140

25 Conclusions Sufficient market capacity exists to accept more PE No technology idenafied to separate film in MRFs efficiently Further investment required for reprocessing curbside film Depot collecaon offered the best price point

26 Next Steps Final Report Explore findings to determine possible projects

27 Michael J. Biree Managing Director Tim Buwalda Senior Consultant Cathy Cirko B.A., M.Env. Vice President Nina Bellucci- Butler Principle Consultant Rick Denyes Director, Strategic Supply Chain Aaron Burman Project Engineer