Maximizing Diversion via innovative technology August 15, 2017 Maximizing Diversion via innovative technology Plastics to Fuel

ACC Plastics Division Members The Plastics Division is a subset of the overall American Chemistry Council membership. These companies manufacturer plastic resins.

Plastics’ Diversion from Landfill Unfortunately, still too many valuable plastics are being landfilled. According to the U.S. EPA, only 9.5% are mechanically recycled and another 15% are converted to electricity at waste-to-energy plants.

Our Vision for Plastics Recovery Natural Gas & Oil 97% Fuels, Power, Other CONSUMER REUSE FABRICATION 3% PLASTIC PRODUCTION USE RECYCLE First of all, only 3% of all the natural gas and oil produced each year goes to plastics. The other 97% goes to fuel, power and other chemicals. Note the “circular” nature of this vision. Maximize mechanical recycling, convert plastics back into feedstocks for plastics manufacturing and finally convert plastics back into energy – which it was borrowed from in the first place POST-USE COLLECTION CHEMICAL RECYCLING ENERGY RECOVERY

Outlined in Governing Magazine Based on existing work with states Working with States Outlined in Governing Magazine Based on existing work with states Combination of policy, voluntary, and industry programs Our recommendations for increasing plastics recycling and recovery for states was published in Governing Magazine last year.

Five Key Recommendations for Georgia ADOPT Sustainable Materials Management (SMM) ENCOURAGE sensible, broadly supported recycling policies EMBRACE voluntary plastics recycling programs and tools These are the five key recommendations. LEVERAGE national partnerships for grants, loans and technical assistance TREAT non-recycled plastics as valuable materials for conversion to fuels and chemicals

Opportunities and Challenges to Recycling Consumers demanding recycled content Private sector setting PCR/recyclability goals Corporate/municipal “zero waste” initiatives Voluntary producer initiatives (WRAP, Terms and Tools, Closed Loop Fund, The Recycling Partnership) but challenges remain to real growth “Evolving ton” Energy prices Economic/practical limits of recycling China Sword Plastics recycling has its strengths but also some tough challenges, China cutting off imports of plastics is the latest challenge

Plastic Packaging Reduces Impacts Lets discuss this – too much to say in the notes here. But in a nutshell need to make the point that the non-recycled flexible coffee packaging reduces GHGs over its lifecycle by 75% compared to the “old steel coffee can” which is recycled in every community. We don’t want to go back to a less sustainable package like the steel can, but need to recover this flexible coffee packaging so its even more sustainable Source: Franklin Associates, September, 2008

Plastics are Too Valuable to Waste Columbia University found that plastics in the waste stream are a very high source of energy. Only natural gas and oil contain more energy. So why are we mining coal and burying plastics? BTUs per LB

What is “Plastics-to-Fuel and Petrochemicals? An oxygen free thermal conversion process known as “pyrolysis” Takes non-recycled plastics (NRP) that are not recycled in commercial markets NRP are heated until melted, then vaporized to a gas and then condensed to liquid transportation fuels, petrochemical feedstocks (for chemical recycling into new plastics), and waxes and lubricants. U.S. DOE: converting plastics to ultra-low sulfur diesel (displacing conventional diesel)* reduces life cycle GHG emissions by up to 14% reduces water consumption up to 63% Reduces fossil energy use up to 97% Versatile process with quantifiable environmental benefits that captures plastics otherwise destined for landfill What is plastics-to-fuel and petrochemicals? *Via Argonne National Laboratory’s Greenhouse Gases Regulated Emissions and Energy in Transportation (GREET) Model.

Need to Treat NRP as a Valuable Material Light industrial Manufacturing regulated under existing manufacturing framework plastic feedstock not a solid waste producing valuable fuels and raw materials not landfills or WTE facilities recyclers determine viable markets allow disposal of off-spec materials and by-products Waste Disposal landfills waste-to-energy facilities plastics-to-fuel facilities other conversion technologies Quite simply, this process is a manufacturing process – uses a feedstock and creates a valuable commodity – thus it hinders its growth when it is wrongly characterized as regular waste disposal. We want states to understand the technology and correctly regulate this technology as manufacturing

Georgia Next? Unanimous Passage in Florida The state of Florida agreed that this made such good sense that they unanimously passed landmark legislation to ensure that PTFP facilities were not regulated as waste disposal.

Plastics-to-Fuel & Petrochemistry Alliance Advocating on behalf of technologies that convert non-recycled plastics to transportation fuels, chemical feedstocks, monomers and other products of pyrolysis ACC has a “Self-funded” group comprised of companies in this space and other interested companies to help drive this technology forward.

Thank You! Michael Power Director, Southern Region State Affairs American Chemistry Council michael_power@americanchemistry.com 770.421.2991