Cmi.2 2013

CAN MANUFACTURERS INSTITUTE 2013 ANNUAL MEETING

General Session: The Role of the Can in Sustainable Solid Waste Management

By Phil Bresee, Solace Sustainability Consulting May 22, 2013

Solid Waste in the U.S.

• Municipal Solid Waste (or “MSW”) = Typical discards from households and businesses. • Per-capita MSW generation has actually declined during the 2000s. • 250 million tons in 2010 • MSW generation tracks closely with economic trends and GDP. • Construction & demolition debris, or mining and industrial wastes not included in EPA’s

MSW.

Sources: US EPA

Landfilled 54%

Combusted 12%

Recycled 34%

U.S. MSW 2010

What’s in our Garbage?

• EPA formulates statistics based on economic and production activity.

• Containers & packaging = 30% of total

• States and local governments perform waste composition studies.

• C&D debris not included in EPA methodology

Paper & cardboard

28.5%

Metals 9.0%

Glass 4.6%

Plastics 12.4%

Rubber & leather

3.1%

Textiles 5.3%

Wood 6.4%

Food scraps 13.9%

Yard trimmings

13.4%

Misc. organics 1.5%

Other 1.9%

Solid Waste Composition in the U.S. 2010 Source: U.S. EPA (before recycling)

Average Composition of Solid Waste Disposed in Select U.S. Cities (after recycling)

Paper & cardboard 21.7%

Metals 3.9%

Glass 3.2%

Plastics 11.8%

Food waste 21.3%

Yard waste 6.8%

Textiles 5.4%

Rubber & leather 0.3%

C&D debris 11.8%

Other 13.8%

Solid Waste Management Hierarchy

• US EPA developed solid waste management hierarchy in late 1980s.

• Source, or waste reduction means minimizing or not creating waste in the first place.

• Recycling is preferred way to manage materials.

Waste Reduction

Reuse

Recycling

Disposal w/energy recovery

Disposal

Most Preferred

Least Preferred

Environmental Benefits of Recycling

• Greenhouse gases (GHG) are emitted during product life-cycles, which include extraction, manufacturing and disposal.

• Recycling and waste reduction are effective tools for reducing GHG emissions from: Raw materials

extraction Energy consumption

during manufacturing Reducing methane

emissions from landfills

Illustration courtesy of U.S. EPA

Solid Waste and Greenhouse Gas Emissions

• Traditional “sector-based” calculations understate impact of waste.

• “Systems-based”, as shown, takes purpose of GHG emissions into consideration.

Calculation sources: U.S. EPA

Prov. of Goods

29%

Prov. of Food 13%

Appliances/Devices

8%

Building HVAC & Lighting

25%

Local Transport

15%

Other Transport

9%

Infrastructure 1% 42% of GHG

for “stuff”

Cans: Environmental Tale of the Tape

Steel

Aluminum Steel

Recycling rate 65% 67%

Recycled content % 68% 25 to 100%

Source reduction • 1972: 21.75 cans weighed 1 lb.

• 2012: 34.57 cans weighed 1 lb.

Steel cans have 1/3 less metal than 20 years ago.

Energy savings by recycling

95% 75%

Equivalent # of cars removed from road by recycling 500 tons

2,055 669

Shipping efficiencies (stacking, no refrigeration, etc.)

√ √

Energy Savings Benefits of Recycling

Recycling 500 Tons of… = GHG Reduction of x MTCE

= Equivalent of Removing X Cars from

Road for 1 Year

Paper 339 259

Cardboard 354 270

Aluminum 2,055 1,569

Steel 915 669

PET 1,035 786

HDPE 885 676

Glass 38 29

Pre-1980s Late 1980s 1990s ~2000 2012

Birth of modern MRF…state legislative actions and local government initiatives…

Managed source-separated material streams...Scrap dealers & vertically integrated companies (Weyerhauser, Alcoa, Anheuser Bush)…

Limited involvement from MSW industry…

Evolution of Recycling…

Transitions to dual-stream…driven by collections efficiencies, need for more through-put

Single-stream MRFs begin to emerge…China becomes major buyer…

The Evolution of Residential Recycling…

Tracking Recycling’s Growth

• More Americans have access to recycling than ever before.

• The national recycling rate has climbed from 16% in 1990 to 34% in 2010.

• Progress with recycling away from home, and at work.

• Still much left to do…Recycling has flat lined in recent years.

# Communities

Population (in millions)

Percent of U.S.

Curbside 10,573 196 63%

Drop-off 21,454 213 68%

Total Access

24,977 273 87%

Source: American Forest & Paper Association, 2010

• Delivered to Materials Recovery Facilities, or “MRFs” (pronounced ‘murph’)

• Recyclables processed using screens, trommels, optical sorting, eddy currents, magnets, etc.

• Speed and angles of processing lines calibrated…

• Residue rates decreasing (<10%)…

Where Do Our Recyclables Go?

Photos courtesy of Resource Recycling magazine and Waste Management, Inc.

U.S. Recovery Rates for Curbside Recyclables

0% 50% 100%

Aluminum cans

Steel cans

Newspaper

OCC

Office paper

Mags

Glass

HDPE

PET

Aseptics

EPA Estimate Industry Estimate

• Counting methodologies differ among EPA, state & local governments, and industry.

• Bottle bill states invariably see higher recycling rates.

• Cardboard & office paper have more established commercial recovery networks.

Recovery Rates for Curbside Recyclables from Select Cities

• Relative light-weight of aluminum makes it harder to measure.

• Bottle-bill states see less aluminum in curbside recycling bins (but more at redemption centers)

0% 20% 40% 60% 80% 100%

Aluminum…

Steel cans

Misc. Paper

Newspaper

OCC

Office paper

Mags

Glass

Plastic bottles

HDPE

PET

Aseptics

Honolulu Montgomery County, MD Philadelphia

Economic Benefits of Recycling

• About 2% of $12.36 trillion U.S. GDP in 2007

• Labor intensive & creates jobs at 10/1 ratio vs. traditional solid waste disposal

• 2008 NERC five-state (PA, NY, MA, ME, DE) study:

11,738 recycling or recycling reliant establishments

Payroll of $4.2 billion for workforce of 100,500

$35 billion gross receipts

Recyclables Market Values 2004-2013

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Aluminum

Steel Cans

ONP

RMP

OCC

Glass

PET plastics

HDPE Nat. plastics

Cartons

#3-7 Plastics

• Recyclables are commodities.

• Prices for recyclables fairly consistent with regular economic growth and contraction.

• Considerable value in the amount of recyclables still being disposed of.

• Added value each step of the way (from processor to mill to manufacturer, etc.).

• States have begun to look more at recycling’s role in economic development (Georgia, 2006).

Not Recycling = Throwing Money Away

Generated Tons Recycling Rate

Avg. Market

Value Per-Ton = Disposed Income

Newspaper 9,880,000 72% $115 = $323,150,000

Cardboard 31,700,000 85% $111 = $532,800,000

PET 2,670,000 29% $382 = $721,980,000

HDPE 4,300,000 23% $518 = $1,724,310,000

Steel Cans 2,300,000 67% $83 = $63,080,000

Aluminum Cans 1,900,000 65% $1,574 = $1,043,719,400

Cans = Bang for $

• Recyclables generate revenues for many local governments.

• Recyclables also allow for savings on solid waste disposal.

• Aluminum has historically held highest economic value per-ton

• Aluminum and steel cans combined make up about 3% of average residential recyclables stream but generate almost 20% of revenue

Recycling Stream of Tomorrow

• Packaging trends need to be monitored…

• MRFs of the future will manage a different recyclables stream.

• New materials will be targeted for diversion (mixed plastics, film, scrap metals, etc.)

• Some commodities may morph into one (ONP, mixed paper).

• Materials can be culled from residue.

Material Current

Percentage Projections

Newspaper 29.1% ↓

Mixed Paper 16.0% ↑

Cardboard 15.1% ↑

Aseptic Containers 0.1% ↑

Aluminum Cans 1.1% ↔

Steel Cans 2.0% ↓

PET 2.9% ↑

HDPE Natural 1.1% ↔

HDPE Colored 1.0% ↔

Mixed Plastics 1.9% ↑

Mixed Glass 17.4% ↓

Rejects/Residue 12.2% ↔

Recycling’s Way Forward?

• More coordination among all stakeholders in the recycling value change is necessary.

• Private sector AMERIPEN, U.S. Recycling Summit

• Curbside Value Partnership

• Investments in collection & processing infrastructure (Coca-Cola, Carton Council, etc.)

Generators

Collectors

Processors

Mills

Product Manufacturers

Retail / Wholesale

Recycling’s Way Forward?

• Sharp increase in exports negatively impacted U.S. domestic recovered materials industry.

• Lack of industrial policy in U.S. has hurt recycling.

• Just 9% of U.S. workforce is in manufacturing vs. 30% in prime…

• Operation Green Fence: China’s crack-down on low quality recyclables (primarily paper and plastics).

• Green linings? More market development

programs? Resurgence in domestic

recycling industry?

Thank You!

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