PET Recycling Markets, Trends & Challenges. Resa Dimino Director of Public Policy NYS Federation Conference May 16, 2016
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1 PET Recycling Markets, Trends & Challenges Resa Dimino Director of Public Policy NYS Federation Conference May 16, 2016
2 Overview Introduction to NAPCOR PET Recycling Context NAPCOR Initiative to Address Bale Quality NAPCOR Initiatives to Address Supply Non-Clear PET Bottle Recycling PET Thermoform Recycling 2
3 Introduction to NAPCOR NAPCOR is the trade association for the PET packaging industry in the United States, Canada and Mexico 52 members encompass all facets of the PET value chain Container Producers PET Resin Producers PET Reclaimers Sheet & Thermoform Producers Suppliers to the PET Industry 3
4 NAPCOR Membership 2016 PET Industry Suppliers PET Container Manufacturers American Starlinger-Sahm, Inc. AMUT North America, Inc. BP ColorMatrix Erema North America Husky Injection Molding Systems Krones Inc. Muehlstein National Recovery Technologies PET Reclaimers BMP Recycling CarbonLite Industries, LLC Clear Path Recycling, LLC Custom Polymers PET Evergreen Plastics Marglen Industries Mohawk Industries Inc. Parallel Products Peninsula Plastics Recycling Perpetual Recycling Solutions Nissei ASB Company Penn Color Plastic Technologies, Inc. Polymetrix REPI Sidel Inc. Sorema Plastic Recycling Sys. Sukano Polymers Corporation TABB Packaging Solutions, LLC TOMRA Systems ASA PetStar Plastic Reclamation Partners Plastrec, Inc. Polyquest, Inc (PQ Recycling) QRS Recycling Reterra Signode UltrePET LLC Wellman Plastics Recycling, LLC Amcor Rigid Plastics Plastipak Packaging, Inc. Yoshino America Corporation PET Sheet / Thermoformers Dart Container Corporation Direct Pack, Inc. Genpak LLC Nu-B, Inc. Octal Extrusion Corporation Polar-Pak, Ltd. Peninsula Packaging Company Plastic Ingenuity, Inc. PET Resin Manufacturers DAK Americas LLC Indorama Ventures USA Inc Nan Ya Plastics Corporation 4
5 National Association for PET Container Resources (NAPCOR) Mission: Founded in 1987 Promote the introduction and use of PET packaging Protect the PET package and overcome hurdles to its successful introduction, use and recycling Articulate and communicate the attributes of PET containers and PET thermoformed packaging as environmentally sustainable 5
6 The Problem: PET Recycling & Utilization Rates Illustrate Declining Quality 35.0% 30.0% 25.0% Recycling Rate Utilization Rate 20.0% 15.0% 10.0% 5.0% 0.0%
7 Reclamation Capacity 2014 Major Assets USA Number of Plants Reclamation Capacity (MMlbs.) US PET Bottles Collected* (MMlbs.) *Includes bottles currently exported 7
8 Growth in Domestic RPET Consumption by Product Category 1600 Other Non-Food Bottles Food & Beverage Bottles Strapping 200 Sheet & Film Fiber 8
9 NAPCOR s Challenge: Increasing Supply While Reducing Contamination Market Signals: Can new bale specification and grading protocol drive quality? Design for Recycling: Will CPGs design PET containers to ensure they can be reclaimed? Market Evaluation & Development: How do we capture the value from growing nontraditional streams (thermoforms and colored PET) while protecting quality? 9
10 NAPCOR Initiatives to Address Bale Quality
11 What s Affecting Bale Quality? Increased single stream curbside collection Proliferation of packaging of all types Not all PET packages reflect design for recyclability guidelines, e.g., full shrink labels, barrier layers Ongoing lightweighting means more PET sorting and processing is required per pound of clean flake generated 11
12 Driving Bale Quality through Gradings Objective: to develop a bale grading system and material audit tool to: provide consistent feedback to MRFs offer industry-vetted, voluntary market standards for PET bales provide incentive to improve bale quality and a PET material audit tool to measure it 12
13 New Model PET Bale Specification Developed and tested by NAPCOR members Approved by both NAPCOR & APR in
14 Bale Grading/Specification Promotion 14
15 Bale Gradings (in Model PET Bale Spec) 15
16 Test Audit for Incoming PET Material A reasonably representative sample is pulled from sample load (preferred sample > 225 pounds) Key measurement is PET fraction of unprocessed bale material, taken as a percentage of total sample weight (not a yield) 16
17 Next Steps on Bale Grading PET reclaimers to communicate with suppliers re: gradings usage, PET material test audit Reach out to key audiences to clearly communicate positive intent and objectives: MRFs Brokers Pricing indices 17
18 NAPCOR Initiatives to Address Supply
19 Non-Clear PET Packaging Recycling Initiative Goal: Increase recycling and develop additional sustainable markets for non-clear PET containers Strategies: Identify existing and potential end-markets for non clear PET Identify obstacles to sustainable markets and methods to overcome them 19
20 Non-Clear Initiative: Activities to Date Collected data from various sources, including producers, recyclers and NAPCOR studies Developed projections of generation and recycling Determined pathways of material flow Tested material for contaminants and quality Evaluated consolidation strategies and access to end markets 20
21 Non-Clear Initiative: Obstacles Identified Critical Mass Disparate Material Flow through MRF, PRF, PET Reclaimer and/or HDPE reclaimer Variability in the Stream Colors, labels, and other contaminants are unpredictable Low-Value Markets 21
22 Non-Clear Initiative: Next Steps Facilitate partnerships and market arrangements Research endmarkets 22
23 PET Thermoform Recycling Goal: To make recycling PET thermoforms as easy as recycling PET bottles, without harming bottle recycling infrastructure Strategies Achieve broad acceptance of PET thermoforms by PET reclaimers Broadcast consistent pro-pet recycling message to communities and MRF operators 23
24 PET Thermoform Recycling Progress 2007 NAPCOR expands its membership to include PET thermoform and sheet manufacturers 2009 The Canadian Retail Initiative 2011 PET thermoform recycling is at 45 million pounds 2013 PET thermoform recycling is at 60 million pounds 2014 Technical trials to evaluate the impact on rpet quality and the PET bottle reclaiming infrastructure Initial lab trials aimed at identifying potential issues with thermoform recycling 2009 <2% thermoform content in curbside PET bales 2012 Three grant programs to test collection, sorting, and marketing strategies 2013 ~6% thermoform content in curbside PET bales 2015 & Beyond Continued work on design, technical, and mechanical challenges; ensuring consistent and accurate messaging; and promoting collection volume increases and tracking 24
25 PET Thermoforms in Bottle Bales are Increasing % Thermoforms by Weight, Curbside/Drop-off Bales 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% Source: NAPCOR commissioned bale analyses, conducted by Moore Recycling Associates 1.00% 0.00%
26 Thermoform Recovery in U.S. & Canada (MMlbs) Exported Reclaimed Domestically
27 Markets for PET Bottle & Thermoform Bales PET thermoforms are technically recyclable with PET bottles, but not all thermoforms are PET. Many PET reclaimers accept thermoforms in bottle bales, as long as autosort systems and best practices are in place. Talk to your buyer about their specifications. 27
28 Thank You! Resa Dimino Director of Public Policy (518)
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