1. Current Status and Projections for Plastic Recycling David Cornell Association of Postconsumer Plastic Recyclers 17 June 2009

2. Who is Whom? Plastic Uses Durables (PP and ‘other’) 34% Non-Durables (LDPE, PS)22% Packaging (PE, PET, PP)44% Overall plastic usage: LDPE>’other’>HDPE>PP>PET>PS>PVC

3. Durables Auto parts –PP fender liners and fairings –Nylon (“PA”) radiator end caps –HDPE gas tanks (fluorinated and EVOH) –HDPE radiator overflow tanks –TPO interior trim and fascia PVC interior also –Bumpers: nylon, PS, polyester, PC, PP plus reinforcement

4. Durables Auto parts –Trim: PP and PC/polyester wheel covers –Grills: PP and polystyrene family –Truck bed liners: HDPE –Headlight lens: PC. Other lens: PC or acrylic –Dashboard: ABS/PP/PC/others + PU –Ducts: HDPE, PP, ABS –Seats: reinforced ABS/PP; PU foam –Carpet: PET or nylon or PP

5. Durables E-waste –Monitors, housings: HIPS, PC, ABS, PP; usually with flame retardants. PVC Appliances –Refrigerators: HIPS or PP box liner, often with PU attached. –Clear: polyesters, special ABS, PC, blends –Telephones: ABS-usually Carpet - Nylon, PET, acrylic, polypropylene

6. Why not More Durables Recycled? Need Critical Mass of Identifiable Items –Not achieved for durable plastics

7. Who is Whom? Short Plastics Lesson - bottles –96% of bottles are PET (60%) or HDPE (36%) –Rest of bottles are PP (~2%), PVC (<1%) and PLA, AN copolymer, other polyesters, styrenics, LDPE and ‘others’ Plus the “multiple material” structures.

8. Where are We? 2007 (latest reported year) Bottles: 2.3 B lbs, 24% recycled –PET: 1.4 B lbs, 25% –HDPE:0.9 B lbs, 26% –Rest (PS, PVC, PP): not much Films:0.8 B lbs, “<10%” Recycled Durables, non-durables, other packaging: “a work in progress”

9. What is the Problem? Recycling requires four prerequisites: 1.Enough, good raw material 2.Processes to convert raw material to product 3.Products of sufficient value to return a profit 4.Investment

10. What is the Problem? 1. Enough, good raw material –Depending on the value of product, roughly 400 M lbs of identifiable material must be present to make a national market. –Material must be consistent with tolerable contaminants. –Finding iconic examples is not easy.

11. 1. Enough Feed NOT ENOUGH PLASTIC AVAILABLE Plastics recycling has been supply-limited for over 95% of its existence. Reclaimers need more feed. APR’s mantra is “more, good, bottles”. Reclaimers learn how to cope.

12. Enough Feed – Collection Packaging Curbside Collection – primary USA means % of population included x % participating x % efficiency in households = 55% x 60% x (30 to 90%) = 10 to 30% rate Deposit –50% to 90% rate Drop off – ~10% rate in USA Scavenge – Primary 3 rd World method

13. 1. Enough Feed Feed must be consistent. –Value is in single resin –Reclaimer skill is getting the most value from the feed available i.e. sort and sell to the market –Always a tension of perfect quality and available quantity

14. What is the Problem? 2. Processes to convert raw material to product –Sorting equipment economics: the cost of the sort billed to removed item –Cleaning processes generally adequate. Innovations (additives, barriers) can create issues.

15. What is the Problem? 3. Products of sufficient value to return a profit –Low end products do not survive –High value products may not be the same as the original (PET bottles to strapping) –Diversified product slate is the option for varying quality grades and risk reduction

16. Recycled Plastic Markets Recycled PET Fiber (carpets, etc)43% still investing Strapping16% growth Food bottles15% growth Sheet & film14% growth Non-food bottles 7% some growth Other uses 5%

17. Recycled Plastic Markets Recycled HDPE Non-food bottles43% growth Pipe23% growth Automotive11% growth Lumber 7% slow Lawn & garden 5% slow Other uses11%

18. Recycled Plastic Markets Recycled polypropylene Paint cans Battery cases Bins & Carts Recycled LDPE Bags & Films Plastic lumber

19. Recycled Prices Recycled plastics compete with virgin plastics. As goes virgin plastics, so, usually, goes recycled plastics.

20. Prices

21. Future Recycled plastic is item of international commerce: –54% of collected PET bottles exported –23% of collected HDPE bottles exported –69% of collected PP bottles exported Recycled PET imported to US for use

22. Future Markets –Virtually all virgin PET markets can be served by recycled PET –HDPE bottle situation will be same –PP packaging collection to be emphasized –LDPE back to film will become significant

23. Future Markets –Mixed resins will continue to be difficult to recycle (uncertain properties) –Critical mass issues will continue

24. Future So long as material is collected in sufficient volume, there will be markets. Exports will continue to help collectors (so long as buyers buy) and hurt domestic processors. Tension of quality vs. quantity continues. Life is never dull in the recycling world