1. Jamie Pitcairn
Technical Director, Circle Economy and Sustainability
19 June, 2019

2. Title: The opportunity for compostable packaging in the UK
Research Study
Title: The opportunity for compostable packaging in the UK
A Biotechnology and Biological Sciences Research Council Network in Industrial Biotechnology and Bioenergy (BBSRC NIBB)

3. Who are we
Ricardo Energy & Environment is an energy and environmental consultancy with over 40 years’ experience working with clients across the globe. Part of Ricardo Group plc a global environmental and engineering consultancy employing 3,000 people.
Employing over 450 people, including many internationally-renowned technical experts and consultants.
We work internationally across seven practice areas, supported by strong cross- functional teams specialising in:
Climate Change & Sustainability
Energy
Air Quality & Environment
Resource Efficiency & Waste Management
Chemical
Risk
Water & Environment
Sustainable Transport

4. how the market for compostable plastics could grow
Introduction
LBNet/BBNet commissioned Ricardo to produce a report summarising the current status of compostable plastics
how the market for compostable plastics could grow
identify the most suitable biomass resource that could be used as feedstock
indicate how bioplastics could contribute to targets for plastic packaging
Preliminary data gathering
Policy landscape
Plastic packaging market
Substitution potential
Biopolymer substitution potential
Bioresource requirement
What are the bioresources?
What is the availability?
Impact & Benefit Analysis
Carbon
Economic

5. Drivers – Regulation & Policy
UK Plastic Pact 2015
EU Circular Economy Package
Basel Convention (2021)
Growing the bioeconomy

6. Drivers – Consumer demand

7. Bioeconomy

8. So what’s the opportunity: understanding the current market
In 2017, it was estimated that 2.361Mt tonnes of plastic packaging was placed on the UK market in of which approximately 1.523Mt (65%) is defined as consumer packaging.
Consumer plastic packaging tonnage by format and polymer (2017) (kt)
HDPE
LDPE PE
PET PP PS
PVC
Other
Total
Film (exc. carrier bags) 71
110 21 28 2 9 17
368
Carrier bags 18 27
Bottles
268 1
347
633
PTTs 4
155 85 32 13
301 55 23 40 76 3
200
403
134
570
288 37 24 19
1,529
WRAP (2018) PlasticFlow 2025

9. Bioplastics placed on the market
Bioplastics currently make up approximately 1% of global plastic production
According available information the current UK market for biodegradable bioplastics is estimated at approximately 8,000 tonnes (+/- 1,000t).

10. Understanding the opportunity: challenges of plastic recycling
Sorting and recycling heavily contaminated plastic – effective, viable??
System losses from collection to reprocessing – less than 15% reprocessed
2/3 of plastic packaging is exported (686,000t) for reprocessing/disposal
Consider export issues…..
China’s national sword/Basel Convention
Material security & Circular Economy
Future – need to understand what can be recycled and what has value.
Not all plastics can be recycled – mixed plastics etc
Not all recycling is economically viable (lack of end markets, sorting & cleaning is expensive)
Opportunity: target plastic packaging where recycling is failing

11. The opportunity: understanding the substitution potential
Need to understand the UK market opportunity for compostable packaging
understand the packaging it could most readily replace, and
understand the size of this potential market
A list of plastic packaging applications was created; categorised firstly by:
the polymer type used
split by food or none food product.
A Red, Amber, Green (RAG) assessment was undertaken to illustrate the substitution potential for compostable packaging
In the short term (Green - already available),
In the medium (Amber - biopolymer potential by 2025);
In the long term (Red – unlikely by 2025).
WRAP (2018) PlasticFlow 2025

12. Substitution Potential
PP meal trays, fruit trays – flexibles that contain food

13. Target market

14. Potential Substitutable Market
Tonnes
Potential Flexibles market
53, ,000
Potential Rigid market
9,000 – 11,000
Carrier Bag potential
28,100 – 50,000
Total
90,000 – 138,000

15. Biopolymers required to meet 2025 biopolymer requirement
Forecast market tonnage
90kt – 138kt
Totals (based on 100,000t average)
100,000
Flexible
77,250
PBAT
45,578
PLA
3,863
Starch
11,588
Regenerated cellulose, PHA, other
16,223
Rigid
17,250
12,075
5,175
Other
5,500
Much can be done with existing polymers – limited technical risk in getting to this number
Even more could be achieved if it is the ‘right’ thing to do and has supporting policy and funding

16. Economic Assessment: commodity market
The transition to a greater adoption of compostable packaging could, by 2025, provide an economic benefit to the bioplastics sector in excess of £267m
Forecast market tonnage
Current market spot price for materials streams £/t
Value of the market
Totals
100,000
£267,085,125
Flexible
77,250
£208,150,125
PBAT
45,578
£2,800.00
£127,617,000
PLA
3,863
£1,800.00
£6,952,500
Starch
11,588
£750.00
£8,690,625
Regenerated cellulose, PHA, other
16,223
£4,000.00
£64,890,000
Rigid
17,250
£42,435,000
12,075
£21,735,000
5,175
£20,700,000
Other
5,500
£3,000.00
£16,500,000
Price based on PHA and regenerated cellulose is bought as a blend and hence is a higher cost that is sometimes quoted
[1]

17. kg Co2 eq per tonne of plastic produced
Life Cycle Assessment
Sensitivity: feedstock and energy
PLA produced using the UK grid mix and using bioresource “waste” as a feedstock has a global warming potential 52% smaller than LDPE
kg Co2 eq per tonne of plastic produced
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
-500
PLA (Scotland)
LDPE
Virgin PLA
PLA (UK)

18. Considerations Bioresource Considerations
Quantify the most attractive bioresources
Assess what is available vs accessible
The role of packaging in the supply chain
Consider scope of packaging items which are most appropriate for substitution:
Household collections
Sorting & processing facilities
Secondary markets
On the go
Packaging contaminated with food waste – expensive to clean and recycle
Collections and infrastructure
Home composting collections are fundamental
Valuing the contribution that compostable packaging can play in capturing the stream of food waste that currently isn’t captured
Potential issue of too much compostable packaging home organic collections
Consider the treatment route for compostable packaging.
Highlight Defra universal waste collection/ strategy

19. Next steps: Decision time!

20. Jamie Pitcairn
Technical Director Circular Economy & Sustainability
Ricardo Energy & Environment
Thank you