Compostability Standards & Testing Kelvin T. Okamoto Cereplast, Inc. Seymour, IN Indiana Recycling Coalition Conference Indianapolis, IN May 15, 2013 Plastic, reimagined
Safe Harbor Statement Matters discussed in this Presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this document, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. These forwardlooking statements are subject to risks, uncertainties, assumptions, and other factors that may cause the actual results, performance or achievements to differ materially from those contemplated, expressed or implied by such forward-looking statements. These factors include, but are not limited to, risks and uncertainties associated with the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. 2
Agenda Cereplast Overview FTC Guidelines Compostability Testing & Specification Compostability Certification 3
Cereplast Overview Renewable raw materials Patented Cereplast formulations Bioplastic resin pellets Sold to brand owners to make products 4
Cereplast Overview Seymour, Indiana Bioplastics Manufacturing Facility Initial capacity of 36,000 tons and expandable up to 227,000 tons 110,000 sf. on 14 acres Research & Development Lab Application development Dedicated R&D production lab 5
Cereplast Overview Cereplast bioplastic resins are made from renewable resources corn, tapioca, potatoes, sugar and algae and can replace traditional plastics for use in a variety of single-use and durable applications. 6
The Benefits of Bioplastics the future of plastics a sustainable alternative to traditional plastics reduced dependence on fossil fuels and foreign oil fully or partially biobased and/or biodegradable or compostable lower carbon footprint fewer greenhouse gas emissions plastic, reimagined enhanced biodgradability and/or compostability 7
Bioplastics Defined A bioplastic is plastic that is: Partially or fully bio-based and/or biodegradable or compostable Not Biodegradable Biodegradable Non-Biobased Not Bioplastic Bioplastic Biobased Bioplastic Bioplastic 8
Works with Major Converting Processes Cereplast resins work with all major converting processes: Injection molding Thermoforming Blown Film Blow Molding Extrusions 9
Three Families of Resin Cereplast Compostables resins are industrially compostable substitutes (according to ASTM D64000) for traditional plastics in single-use disposables and packaging including cups, straws cutlery and bags. Cereplast Sustainables resins replace up to 95%+ of the petroleum content in conventional plastics and can be used in a range of durable goods markets including automotive, consumer goods and electronics, medical supplies and construction. Cereplast Bio-polyolefins resins are bio-filled polyolefins PP, PE, TPE, and EA. 10
FTC Guidelines Officially titled Guides for the Use of Environmental Marketing Claims Issued by US Federal Trade Commission (FTC) First Issued in 1992 Recently revised October 1, 2012 Previously revised in 1996 and 1998 11
FTC Guidelines General guidelines Claims must Be specific Be clear Be supported by data State if relevant to product, packaging or service 12
FTC Guidelines State type of facility if it is appropriate Municipal Backyard If not for backyard, must state so Must also state that industrial composting facilities have limited availability 13
FTC Guidelines Seals and Certifications Environmental certification must convey specific benefit State affiliation with certifying body Unqualified: tested and specified according to standards by voluntary consensus standard body and certified by independent party 14
Compostability Testing & Specification ASTM standards types Terminology Protocol/Guidelines Test Method Specification Compostability test methods and specifications Exist for industrial compostability Do not exist for backyard compostability 15
Compostability Testing & Specification Compostability specification standards ASTM D6400 Four parts Metals content: 2 4 weeks Disintegration: 12 weeks Mineralization: 180 days Plant growth: 4 weeks Total time about 8 months 16
Compostability Testing & Specification Compostability specification standards New testing required when Add additive >1.0% Add multiple additives >5.0% total Additives include fillers, resin, colorant, ink and adhesive Thickness dependent 17
Compostability Testing & Specification Compostability specification standards ASTM D6868 For coating of materials of natural origin Coatings include plastic, wax and adhesive Each layer must pass disintegration, mineralization and plant growth testing per ASTM D6400 independently Total composite must also pass ASTM D6400 18
Compostability Certification Biodegradable Products Institute (BPI) Certifies only for industrial compostability Starting July 1, 2014, will additionally require all additives used at > 1.0 pass mineralization test Associated with US Composting Council International reciprocation with DIN Certco, etc. Requires ASTM D6400/D6868 or EN13432 testing at approved labs NSF reviews test results for certification Certifies materials and products www.bpiworld.org 19
Compostability Certification Cedar Grove Composting Approves/accepts only for industrial compostability For profit company Becoming more recognized by other industrial composters Requires ASTM D6400/D6868 or EN13432 testing prior to review Reviews test results for acceptance or tests for approval Accepts/approves only products www.cgcompost.com 20
Thank You Visit www.cereplast.com for more information. Cereplast, Inc., 2213 Killion Avenue, Seymour, IN 47274 21