1. Waste Plastics Oyster Basket Recycling – Feasibility Study SAOGA Annual Seminar Workshop 8 August 2013 Rawtec & Econsearch

2. Agenda The Project:  Why?  What are we talking about?  Scope/Objectives  Approach Key findings Summary (so far) The next step? Your feedback & comments

3. The Project

4. Why? SA oyster industry:  Economic value – $92million  Employment – supports up to 1000 jobs Oyster baskets:  Up to 2.5 million “basket units” in use  $20-30 million dollars of capital investment  Many different types  Last between 5-20yrs depending on type & quality Waste oyster baskets:  Disposal is expensive  EOL baskets are being stockpiled by many growers  Cost-effective & sustainable solution is sought

5. Oyster Basket Types  Two-setter/Rack  Pillow basket  Manufactured Basket  Aqua-tray

6. Waste Oyster Baskets  Before  Stockpiled  Shredded  Baled

7. Where?

8. Scope/Objectives What materials are used in oyster baskets? How long do baskets last (or EOL)? How much waste is generated? Where is waste being stockpiled? Who can recycle it & in what form? How do we get it from grower to recycler? What will it cost? What is the best option based on cost-benefit analysis (CBA)?

9. Approach Consultation & Data Collection  Oyster Growers  Recyclers  Waste collectors/transport Analysis & assessment Option identification Draft findings  Today’s Workshop CBA assessment of options Recommendations & report

10. Key findings

11. Oyster Basket Materials Depends on basket type & quality Substantial (recyclable) plastic content  HDPE – All basket types  PP – Manufactured basket + Aqua-tray But other materials present

12. How long do baskets last? EOL depends on:  Quality of plastic body material  Type of basket  Quality of construction  Marine conditions  Handling & maintenance Unique to each grower’s circumstances EOL is not a “discrete” event!

13. How much waste is generated? Depends on:  Lease area  Development history  Basket type  Basket density Different for each Bay In 2013:  120-150 thousand baskets/yr  150-200 tonnes of waste/yr Future disposal rates would be similar

14. How much is being stockpiled? Depends on:  Disposal rates  Disposal options  Disposal practices Again, each Bay different By 2013:  1200-1300 tonnes  > 1 million baskets No change?  Current growth could continue!

15. Where is this stockpile located?

16. Who can recycle it & in what form? Potential recipients?  Aggregators – Collectors  Re-processors – Recover & granulate  Recyclers – Manufacture recycled products In what form?  Waste needs to be single polymer type  Baled or “As-is” preferred but shredded okay (if sorted, “clean” & single polymer)  However, only one Adelaide-based re-processor willing to accept limited contamination  Rebate dependant on quality & type of material

17. How would we recycle? SA Oyster Industry

18. How much could it cost? Depends on location, volume, method, markets & timing Lowest cost strategy?  Sort at site  Stockpile – Existing & Future  Let “nature” clean  Shred for volume reduction  Back-load to Adelaide  $100/tonne rebate Nett cost (minimum):  Stockpile – 40-60¢/Basket  Future waste – Similar cost

19. Other disposal options? Waste to energy  Process engineered fuel  Adelaide-based  No sorting/cleaning, but pay $100/t? Landfill disposal (direct)  More cost-effective at some locations  Similar logistical challenges Waste-to-diesel  Still “bleeding-edge” technology Incineration  Not open burning!  Expensive mobile plant required

20. Context? 40-60¢/Basket =  4-8% of basket replacement cost  <0.5% of farm-gate product value However, “Stockpile” disposal cost =  1.5-2% of industry farm-gate product value

21. Summary (so far)

22. What have we learned? There is potentially a large stockpile, which will continue to grow if nothing is done Recycling is possible – but re-processors require “quality waste material”  This would require cleaning & sorting of material Recycling cost at least 40-60¢/Basket unit  Freight cost only one component  Landfill disposal could be a cheaper option for some Recommended industry approach:  Cooperate & plan but retain flexibility  Contract out to minimise risk  Use the market to achieve best price outcome

23. Next stage (CBA)

24. What is CBA? Financial analysis method for comparing investment options/actions:  Adds all (relevant) costs and savings over time  Nett/total benefit/cost  Same method you would use as a grower  But Government has its own special technique! Key steps?  What are the options?  Identifying & quantifying cost/benefits (of these options)

25. What are the options? Option A: Do nothing (Baseline scenario)  Continue to stockpile until not feasible, e.g. EPA License becomes required as deemed “on-site disposal” Classified as “prohibited” waste for landfill “Waste treatment” required to allow disposal  Disposal cost deferred & could be substantially greater! Option B: Dispose – No support/intervention  Recycle or landfill, whichever available & cheapest Option C: Recycle only – Support/intervention, e.g.  C1 – Industry Levy  C2 – Mobile shredder  C3 – Freight subsidy

26. What are the costs/benefits? Cost/Benefit Options ABC1C2C3  Oyster Industry Market price (Product stewardship-driven) ??   ? ?? ?? Sales (Product stewardship-driven) ??   ? ?? ?? Land (for stockpiling)  ? ?? ?? ?? ?? Production (Disposal)  (Future)  Management/compliance (Industry, EPA, Council)   Community Government investment (funding/support)  Government oversight (compliance)  Oyster industry “Flow-on” economic value ?? ??  ? ?? ?? Waste industry economic value  (Future)  Recycle industry economic value  Transport Industry economic value  (Future) 

27. Your advice is needed! Are these the right options? Oyster industry costs/benefits?  How long could you continue to stockpile?  Would recycling initiative improve price & sales?  Is land a valuable commodity?  Other costs/benefits to be considered – are there any?

28. Comments & feedback?

29. Acknowledgements & Thank you