Increasing Aluminum Can Recycling Rates in Tennessee
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1 Increasing Aluminum Can Recycling Rates in Tennessee Recycling in Tennessee: SERDC Workshops; August 13-15,
2 Alcoa at a Glance! Leading aluminum products company Primary aluminum and alumina Flat- rolled aluminum and hard- alloy extrusions! Ac9ve in all major segments of the industry: Technology Mining Smel9ng Fabrica9ng Refining Recycling Products serving the aerospace, automo9ve, commercial transporta9on, packaging, building and construc9on, and industrial markets. 2
3 Tennessee is home to a diverse set of Alcoa businesses Tennessee Opera*ons, Alcoa: Largest recycling and can sheet produc3on facility in the world Knoxville Office: HQ to our global primary products, energy and metal trading businesses Howmet Cas*ngs, Morristown: Investment cas3ng for aerospace markets Evermore Recycling, Nashville: Soon to be wholly owned by Alcoa on August 31. 1,650 ac9ve employees 4 opera9ng loca9ons Packaging, Aerospace, Primary Products,and Recycling Howmet, Morristown APP HQ, Alcoa Energy, Knoxville Tennessee Opera*ons Evermore Recycling, Nashville 3
4 Background: Global Recycling Rates China Brazil Germany Finland Benelux Japan Norway / Iceland Argen9na Sweden Switzerland Denmark Netherlands Austria Turkey Cyprus Quebec (Canada) Poland Estonia Spain USA Italy United Kingdom France Slovenia Ireland Hungary Portugal Lithuania Greece Romania + Bulgaria Latvia Malta Source: IAI 0% 20% 40% 60% 80% 100% 120% 4
5 What is the problem? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Total Global Market ~196 billion U.S.: 97 billion ROW: 99 billion! Half the world s cans are consumed in the U.S., yet 42% of them are s9ll going 41 billion trashed into the waste system 40.7 Cans Recycled 56.2 Cans Trashed! In the U.S., we have the largest market for these cans, but one of the lowest recycling rates among developed countries.! The result? About 1.3 billion lbs or 575 KMT of metal with ~69% recycled a strong market is being buried in U.S. landfills Equivalent of 2 smelters are buried in U.S. landfills Equivalent of >27,000 Airbus A320s Sources: Aluminum Associa9on, CMI, IAI, Alcoa Es9mates 5
6 What is the problem? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Total Global Market ~196 billion U.S.: 97 billion! Half the world s cans are consumed in the U.S., yet 42% of them are s9ll going 41 billion trashed into the waste system 40.7 Cans Recycled 56.2 Cans Trashed! In the U.S., we have the largest market for these cans, but one of the lowest recycling rates among developed countries. About 47 million! The result? About 1.3 billion pounds of cans are lbs or 575 KMT of metal with ROW: trashed 99 billion in Tennessee ~69% recycled a strong market is being each year Equal to buried in U.S. landfills a fleet of 1000 jet airplanes, and worth between $25-30mm Equivalent of 2 smelters are buried in U.S. landfills Equivalent of >27,000 Airbus A320s 0% Sources: Aluminum Associa9on, CMI, IAI, Alcoa Es9mates 6
7 What Can We Accomplish? Alcoa s Goal: Raise US recycling rate to 75% by 2015 Source: IAI 7
8 Why is This So Critical?! Aluminum can be recycled economically an infinite number of 9mes, which makes it a manufactured natural resource. We save 95% of energy needed to make aluminum from raw ore when we use recycled aluminum. Aluminum cans are not trash they are by far the highest value component in the waste stream.! Increasing the U.S. aluminum can recycling rate to 75 percent would save enough energy to replace a 354 mega- waj coal- fired power plant. Put in perspec9ve, that s enough energy savings to power all the homes in Memphis each year.! Recycling means jobs in Tennessee. Alcoa s Tennessee Opera9ons is the largest recycling facility in the world, and we depend on recycled cans. Yet, while Tennessee is among the top 15 non- deposit states in terms of can consump*on, the recycling rate in Tennessee is among the lowest in the na*on. Source: IAI 8
9 The Geographically Close Aluminum Industry is Short of Cans Source: SERDC 9
10 Under Utilized Capacity in Tennessee! 50% capacity expansion completed at Tennessee Opera9ons in 2009! 140,000 pounds of recycled cans per hour! Lack of recycled cans forcing the use of more expensive materials such as prime ingot! The capacity is there we just need more recycled cans! Source: IAI 10
11 What can be done to create step change improvement?! Industry Collaboration Action to Accelerate Recycling a voluntary stewardship initiative kicked off by Alcoa! Outreach and Education Social Shift college campus campaign Keep America Beautiful Curbside Value Partnership ( aluminum industry program to drive local community recycling SERDC Alcoa Foundation Grants to communities, recycling groups! Policy Policy Policy Must drive change to provide necessary incentive 11
12 What can be done?! Policy support is imperative Disposal bans Mandated or incentives for recycling Pay as you throw
13
14 A Great Opportunity I was seldom able to see an opportunity until it had ceased to be one. Mark Twain
15 Thank you! 15
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