Demand for Recycled Aluminum in Tennessee Beth Schmitt, Director, - - PowerPoint PPT Presentation

Demand for Recycled Aluminum in Tennessee

Beth Schmitt, Director, Recycling Programs, Alcoa Recycling

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August 15, 2013

Alcoa is the world’s largest integrated aluminum company

NA aluminum production – 1981-2011

1981

33 US Smelters in Operation

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Dramatic reduction in smelter capacity

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2011

9 US Smelters in Operation 5 Owned by Alcoa

Dramatic reduction in smelter capacity

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Scrap is funding the largest can sheet mill in the world

2013

9 US Smelters in Operation 5 Owned by Alcoa Alcoa Recycling

~65% recycling rate ~54% w/out imports

$1B in value (42B cans) lost to landfills in US each year

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World and US can market, 2011, Billions of cans

Sources: Aluminum Association, CMI, IAI

~42B cans in landfills ~$1B lost market value

US Rest of World 2011 239 92 147 8 Landfilled Recycled Net Imports 2011 100 42 50 World can market US UBC balance

Numerous scrap processors operate across the state, yet Tennesseeans lose $40mm in aluminum value annually

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Beyond the consumers in the RRS report, other scrap processors supply aluminum fabricators like Alcoa

Alcoa Recycling Aluminum Scrap Processing

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

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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

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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

The Aluminum Association (93.6 billion cans shipped in 2011)

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

Implementing Public Policy 1% Increase in US Recycling Rate Generates 936 Million Cans (27 Million pounds)

Percent of Aluminum Cans Collected

Increasing Consumer Access and Commitment are the keys to future growth

Drives $22 Million of economic activity

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