Demand for Recycled Aluminum in Tennessee Beth Schmitt, Director, Recycling Programs, Alcoa Recycling August 15, 2013 1
Alcoa is the world’s largest integrated aluminum company
NA aluminum production – 1981-2011 1981 33 US Smelters in Operation 3
Dramatic reduction in smelter capacity 2011 9 US Smelters in Operation 5 Owned by Alcoa 4
Dramatic reduction in smelter capacity Scrap is funding the largest can sheet mill in the world 2013 9 US Smelters in Operation Alcoa Recycling 5 Owned by Alcoa 5
$1B in value (42B cans) lost to landfills in US each year World and US can market, 2011, Billions of cans World can market US UBC balance 100 239 Net Imports 8 ~65% recycling rate Rest of World 147 ~54% w/out imports Recycled 50 ~42B cans in landfills Landfilled 42 ~$1B lost market value US 92 2011 2011 6 Sources: Aluminum Association, CMI, IAI
Numerous scrap processors operate across the state, yet Tennesseeans lose $40mm in aluminum value annually Beyond the consumers in the RRS report, other scrap processors supply aluminum fabricators like Alcoa Aluminum Scrap Processing Alcoa Recycling 7
The current situation: Demand exceeds supply � There are nine MRFs in Tennessee, all with excess capacity, and hundreds of drop offs and/or scrap dealers across the state � There is more demand for scrap aluminum than there is supply � Even in a down market, the value of the metal still far outstrips cost of processing. � The aluminum industry, which is importing cans from all over the world, will buy every good quality can that can be collected in Tennessee � We must find a way to motivate Tennessee consumers to recycle 8
What strategies could move the needle? � Ban cans from landfills! SB 941/HB 945 was a great start! � Get behind more pro-recycling policy � Implement bar and restaurant programs locally (example: Columbus, OH) � Consider PAYT at a municipal level � Experiment locally – reach out to local industry and NGOs to help � Get and train a recycling coordinator to understand the economics of waste diversion and recycling 9
Pay as You Throw policy incents consumers to waste less Key Components • Consumers pay for trash disposal based on volume vs. flat fee • Demonstrated in 7100 cities • Effective at reducing overall landfill usage by diverting recyclables, yard waste, etc. What it means for recycling • Treats solid waste like other use- based utilities • Anticipated 15% increase in aluminum can recycling (to ~45-50%) • In TN: 6.6mm lbs or $5.3mm
Creating access for those in Multi-Family Homes Key Components • Targeted to multi-family complexes with 10+ units • Requires owners to create access for residents • Designed to reach the 360mm cans consumed in multi-family units in Tennessee • In TN: 2mm lbs or $1.6mm
Bold action is required Increasing Consumer Access Drives $22 and Commitment are the keys Million of to future growth economic Generates 936 activity Million Cans (27 Million pounds) 1% Increase in US Recycling Rate 80.0 Implementing 70.0 Public Policy 60.0 50.0 40.0 30.0 20.0 10.0 Percent of Aluminum 0.0 Cans Collected The Aluminum Association (93.6 billion cans shipped in 2011)
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