State of the Recycling Industry Jeremy Starritt City of Frisco - - PowerPoint PPT Presentation

State of the Recycling Industry

Jeremy Starritt City of Frisco Environmental Services Manager

• Where is the money in recycling?
• How far has Recycling come?
• What’s happening with

Recycling today?

• Where is Recycling going in the

future?

Questions for discussion

• After 20 years of expansive

growth, the rate of increase in recycling has begun to decline. We are recycling the basic commodities at high rates, making growth in rate of increase difficult.

Glass ceiling

Average Curbside Recycling List

So what is missing? Hard Plastics, Shredded Paper, Plastic film, Styrofoam, Food Scraps, etc.

Adding new commodities

Facilities in Dallas

MRF’s

• PWS- 1 (McKinney)
• Republic- 2 (Fort Worth,

Plano)

• Waste Management- 3

(GreenStar, Fort Worth, Garland)

• CWD- 1 (Dallas)
• Pratt-1 (Denton)
• Balcones- 1 (Dallas)
• Texas Recycling/Surplus Inc-

1 (Dallas)

• Recycle Revolution- 1 (Dallas)

Landfills

• Republic- Arlington Landfill, Camelot

Landfill (Lewisville), Lewisville Landfill, Fort Worth Southeast Landfill, ECD Landfill (Ennis)

• 121 Regional Disposal Landfill (Melissa

Landfill)

• McKinney C&D Landfill
• PWS- Forth Worth C& D Landfill, Turkey

Creek Landfill (Alvarado)

• Waste Management DFW Recycling and

Disposal Landfill (Lewisville)

• McCommas Bluff/ City of Dallas Landfill
• CM Hinton Jr Regional landfill (Rowlett)
• Mesquite Regional Landfill
• Denton Landfill
• City of Grand Prairie Landfill
• Hunter Ferrell Landfill (Irving)
• Republic Maloy Landfill (Campbell)
• Sherman Landfill (WM)

Total MSW generation (by material), 250 million tons (before recycling)

MSW management in the United States

Recycling Rates Over Time

Recycling rates for selected products, 2011-2012

We have seen growth in collections

We have seen growth in processing

We continue to grow

Recycling’s progress

Yes, more than 10,000 communities, where 63 percent of Americans live, now collect recyclables curbside. Yes, 193 million Americans can set out recyclables weekly. But our progress has slowed. Recycling rates have flattened out.

Aluminum can recycling rate

PET bottle recycling rate

Paper recycling rate

Steel recycling rate

Recycling’s progress

And then we encountered the Great Recession of 2008-2010. While recycling rates were not severely affected, recovery economics became ugly.

Impact on exports in the first quarter of 2009

Material Volume Price Paper

• 14%
• 22%

Plastics + 15%

• 32%

Aluminum

• 40%
• 31%

Ferrous Scrap + 12%

• 26%

HDPE milk jug bale prices

Aluminum can prices

PET bale prices

Recovered paper prices

(18 grades; weighted average)

Old newspaper price

Ferrous scrap prices

(No. 1 heavy melting steel)

Recycling’s progress

• And we have seen a

fundamental shift in critical recycling

• markets. The

continuing rise in Chinese demand during a recession has resulted in systemic changes in the American recycling market.

Plastics exports

Ferrous scrap exports

Recycling’s progress

• The crunch created by

high export demand and a crushing recession has been toughest on the domestic paper industry.

Recycling’s progress

Paper collections continue

Use of recovered fiber by U.S. paper industry sector

Recovered paper exports

2011 recovered paper market

2011 Marketplace

57% 43%

2011 Marketplace

57% 43%

Versus 2010

• 3.0%

+11.8% +2.5%

Versus 2010

• 3.0%

+11.8% +2.5%

Million Tons

30.5 23.2 53.7

Million Tons

30.5 23.2 53.7 Domesti c Exports Total

Newsprint: a paradox

North American shipments in million tons: 2007: 12.2 2008: 11.2 2009: 8.1 2010: 8.6 2011: 5.9 2012: 5.8 This is a loss of more than 50 percent over four years.

Paper recycling markets: Bankruptcies

AbitibiBowater Newsprint Caraustar Paperboard Newark Group Paperboard Smurfit-Stone Paperboard SP Newsprint Newsprint

.

Paper mill closures

Blue Heron Oregon City, OR Caraustar Chattanooga, TN Caraustar Richmond, VA Caraustar Charlotte, NC Franklin Boxboard Franklin, OH International Paper Albany, OR Smurfit-Stone Missoula, MT Sonoco Rockton, IL Sonoco Lancaster, OH

Recycling’s future

Ten issues or trends will help form where recycling in Texas is headed in the next decade.

More programs and materials

• Adding and increasing local recycling

efforts

• Higher commodity prices mean

higher profitability for recyclers and customers

• Addition of new commodities

means more items for sale (also less going to landfills = money)

Rising focus on toxics

Local and state initiatives targeting the management

• f toxics in solid waste will

grow in number and effect.

Stewardship

Extended product stewardship will become the prevailing waste management model in the coming years. However, current EPR initiatives require remodeling if they are to become truly sustainable.

Product Stewardship Current Bills

• HB1916 – Relating to sale, recovery, and recycling of

certain television equipment.

• HB1811 – Relating to the establishment of a program

for the collection, transportation, recycling and disposal of mercury-containing lights

• HB695 – Relating to the establishment of a program

for the collection, transportation, recycling, and disposal of mercury-added thermostats.

• HB405 – Relating to the storage, transportation, and

disposal of tires; providing criminal penalties.

Food

Look for more and more North American communities to add food discards – both commercial and residential – to organics collection and composting systems.

Convenience

More large, regional, hub-and- spoke MRFs will come on-line and you’ll see smaller and smaller communities moving to single- stream recycling collection. Big MRfs in urban areas (Dallas, San Antonio, Austin, etc.) will dominate the marketplace.

Convenience

And more people will be provided single- stream recycling collection service: 2005 – 29 percent of the population had access to single-stream collection 2010 – 64 percent had access

Continued consolidation

More and more recyclables will be collected and processed by fewer and fewer players. Mergers and acquisitions will continue.

The impact

Big supplier Million tons/year ReCommunity 1.8 Republic/Allied Waste 3.3 Waste Connections 1.0 Waste Management 12.9

The impact

Big consumer Million tons/year Abitibi-Bowater 2.0 Caraustar 3.0 Cascades 2.6 Georgia-Pacific 4.0 International Paper 5.0 Rock-Tenn/Smurfit 4.7

The impact

Steel company Processing plants Commercial Metals 36 Nucor 58 Schnitzer Steel 42 Steel Dynamics 27

The impact

Paper company Processing plants International Paper 33 Newark Group 11 Rock-Tenn/Smurfit 37 Sonoco 17 SP Newsprint 21

Market Development

The lack of attention in the U.S. toward an industrial policy will hurt recycling. As piles of recyclables climb, states will be urged to, once again, launch recycling market development programs.

The green fence is real

This may become the year when recycling quality and the cost of recycling both rise, but for a good reason. China no longer wants to be the world’s dumping ground.

Reframing

We will move towards better

• metrics. Less attention will be

focused on recycling rates, and more governments and industries will consider global warming and life-cycle issues when making decisions. The U.S. EPA is already rethinking how it addresses wastes.

EPA ReThink Programs

Sustainability

We are far from being a sustainable practice, and more effort is required for us to truly succeed. That is recycling’s greatest challenge going forward.

Energy consequences of not recycling

Material Annual lbs per Household Barrels Saved per Ton Barrels Lost Annually Energy Value Lost (@$75/bbl in billion dollars) Value per Household Fiber 1,821.6 1.70 85,425,000 $6.407 $116.14 Aluminum Cans 27.0 40.00 28,936,875 $2.170 $40.47 PET Bottles 39.0 16.30 28,115,870 $2.108 $23.87 HDPE Bottles 30.1 16.30 20,454,870 $1.534 $18.41 Glass Bottles 883.4 0.12 4,543,855 $.341 $3.98 Steel Cans 19.2 1.80 1,141,756 $.085 $1.30 Total 2,820.4 1.93 168,618,226 $12.645 $204.16

168,600,000 barrels or 3.5%

Source: SWANA/SRI

We are sending money to the landfill

Other forms of Diversion and Conversion Energy from Waste Recovery

Diversion

• Composting
• Chipping for Mulch
• Reuse/Recover
• Recycling

Conversion

• Thermal: Incineration,

gasification, pyrolisis

• Non-Thermal: Anaerobic

Digestion, Fermentation

• Physiochemical: Synthetic

crude oil or biodiesel

Breakdown of MSW in 2011

Thanks for Recycling

Jstarritt@FriscoTexas.gov