RECYCLING IN NC: MARKET UPDATE, UNDERSTANDING SINGLE STREAM VALUATIONS, & MAKING THE BEST OF THINGS
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1 RECYCLING IN NC: MARKET UPDATE, UNDERSTANDING SINGLE STREAM VALUATIONS, & MAKING THE BEST OF THINGS NC APWA Solid Waste Division, August 12, 2016 Rob Taylor, NC Department of Environmental Quality
2 Overview Recycling Things on Everybody s Minds Market Update The Value of a Commingled Ton Quality Making the Best of Things Discussion
3 Recycling: Some Things On Everybody s Mind Recycling Markets / Material Values Processing Costs Glass Contamination Electronics (whoops, wrong presentation)
4 Recycling Market Update Some major factors influencing the value of your recyclables: Low cost of oil High value of US dollar relative to other currencies Decreased demand for US recyclables in China The relatively low value of recyclable commodities over the past year has exacerbated problems with glass (more later).
5 Fiber / Paper Prices (per ton) Since 2008
6 Aluminum, PET and HDPE Prices (per.lb) since 2008
7 What about Glass? Yes: Glass is causing trouble for recycling at this time Yes: Citizens want to recycle glass Yes: ABC On-Premises permit holders in NC are required to recycle glass beverage containers And, glass is a substantial proportion of recycling tonnage (more later) Remember, if glass isn t recycled then it s thrown away. Away = MSW Landfill in your municipal garbage trucks Questions: Does garbage collection have a cost? Does your community pay tipping fees for disposal (either directly or indirectly)?
8 Glass: Believe It Or Not Glass is readily recyclable and there s plenty of demand for recycled glass cullet NC has good access to glass processing Strategic Materials, or SMI, has a beneficiation plant in Wilson, NC SMI turns mixed glass into cullet that is furnace-ready Challenges with glass recycling: Hard on equipment Low value relative to other recyclables Glass from MRFs often contains A LOT of material besides glass SMI pays for glass, but not for transportation or the other materials mixed with glass
9 Strategic Materials, Wilson From this: To this:
10 Users of Reclaimed Cullet in NC area Ardagh Henderson, NC Wilson, NC Owens-Illinois Danville, VA Winston-Salem, NC Potters Industries Apex, NC
11 Despite the Current Challenges Growing understanding of mutual dependency between public recycling programs, recycling processors, and end-users of recovered materials And, the move towards Single Stream continues Why? Because it: Reduces recycling collection cost Increases recycling program efficiency and effectiveness Increases amount of materials recycled and makes citizens happy
12 Annual Recycling Tons Reported as Commingled by NC Local Governments 400, , , , , , ,000 50,000 - FY FY FY FY FY FY FY FY FY FY FY
13 NC MRFs
14 NC MRFs
15 Single Stream Recycling: What s In The Bin? Material mix varies by region and community Socio-economics of community population Local decisions about what materials will be accepted by public recycling programs Access to markets for specific materials Material mix varies within any given year (seasonally, yearly, and even weekly) Seasonal nature of consumption Composition of mix depends on effectiveness of outreach efforts Getting the message about the right materials and the wrong materials Material 2015 Glass 27.4% PET 4.8% HDPE 3.4% 3-7 Plastics 0.6% Rigid Plastics 0.5% Aluminum 1.2% Steel 2.5% Containers SubT: 40.3% Newspaper 20.8% OCC 17.6% Magazines n/a Mixed Paper 21.3% Fiber SubT: 59.7%
16 Understanding Commingled Pricing More important than ever because of recent markets Lots of moving parts contribute to the final value Price of a commingled ton is a composite based on the value of individual commodities and their percent of the mix (the commingled ton ) Remember: sorting and baling isn t free and MRFs are for-profit operations Both quantity and quality of material delivered to a MRF matters
17 Materials, from the MRF Perspective Higher Material Value ($/Ton), May Pricing in NC Lower Al HDPE PET Steel OCC ONP OMP Glass Value of material to a MRF is influenced by: An individual material s current commodity price How much of any material is in the commingled mix The MRF s contracts / relationships with markets for materials The effectiveness of the MRF system for recovering that material Not all MRFS are created equal: Efficiency and economy of scale impact relative cost of processing
18 Material % of 1 MRF ton Price/ton* Value Fiber Materials ONP 20.8% $ $ Mixed Paper 21.3% $ $ OCC 17.6% $ $ Fiber Sub-total 59.7% $ Container Materials Glass 27.4% $ (6.67) $ (1.83) Aluminum Cans 1.2% $ 1, $ Steel Cans 2.5% $ $ 1.08 PET 4.8% $ $ 7.20 HDPE (colored prices) 3.4% $ $ Mixed Plastics 0.8% $ $ 0.24 Cartons/aseptics 0.2% $ $ 0.10 Container Sub-total 40.3% $ TOTAL $ MRF Operating Costs $ Residue Costs $ 7.20 Net Cost/Revenue $ (2.24) How to determine the value of a commingled ton
19 Material % of 1 MRF ton Price/ton* Value Fiber Materials ONP 20.8% $ $ Mixed Paper 21.3% $ $ OCC 17.6% $ $ Fiber Sub-total 59.7% $ Container Materials Glass 27.4% $ (6.67) $ (1.83) Aluminum Cans 1.2% $ 1, $ Steel Cans 2.5% $ $ 1.08 PET 4.8% $ $ 7.20 HDPE (colored prices) 3.4% $ $ Mixed Plastics 0.8% $ $ 0.24 Cartons/aseptics 0.2% $ $ 0.10 Container Sub-total 40.3% $ TOTAL $ MRF Operating Costs $ Residue Costs $ 7.20 Net Cost/Revenue $ (2.24) Start with the materials in the mix
20 Material % of 1 MRF ton Price/ton* Value Fiber Materials ONP 20.8% $ $ Mixed Paper 21.3% $ $ OCC 17.6% $ $ Fiber Sub-total 59.7% $ Container Materials Glass 27.4% $ (6.67) $ (1.83) Aluminum Cans 1.2% $ 1, $ Steel Cans 2.5% $ $ 1.08 PET 4.8% $ $ 7.20 HDPE (colored prices) 3.4% $ $ Mixed Plastics 0.8% $ $ 0.24 Cartons/aseptics 0.2% $ $ 0.10 Container Sub-total 40.3% $ TOTAL $ MRF Operating Costs $ Residue Costs $ 7.20 Net Cost/Revenue $ (2.24) Add in the value of the commodities *winter 2015/16 prices shown for illustration
21 Material % of 1 MRF ton Price/ton* Value Fiber Materials ONP 20.8% $ $ Mixed Paper 21.3% $ $ OCC 17.6% $ $ Fiber Sub-total 59.7% $ Container Materials Glass 27.4% $ (6.67) $ (1.83) Aluminum Cans 1.2% $ 1, $ Steel Cans 2.5% $ $ 1.08 PET 4.8% $ $ 7.20 HDPE (colored prices) 3.4% $ $ Mixed Plastics 0.8% $ $ 0.24 Cartons/aseptics 0.2% $ $ 0.10 Container Sub-total 40.3% $ TOTAL $ MRF Operating Costs $ Residue Costs $ 7.20 Net Cost/Revenue $ (2.24) Add things up to determine the Gross Value of the Ton Gross Value
22 Material % of 1 MRF ton Price/ton* Value Fiber Materials ONP 20.8% $ $ Mixed Paper 21.3% $ $ OCC 17.6% $ $ Fiber Sub-total 59.7% $ Container Materials Glass 27.4% $ (6.67) $ (1.83) Aluminum Cans 1.2% $ 1, $ Steel Cans 2.5% $ $ 1.08 PET 4.8% $ $ 7.20 HDPE (colored prices) 3.4% $ $ Mixed Plastics 0.8% $ $ 0.24 Cartons/aseptics 0.2% $ $ 0.10 Container Sub-total 40.3% $ TOTAL $ MRF Operating Costs $ Residue Costs $ 7.20 Net Cost/Revenue $ (2.24) Remember the MRF has costs: -Maintenance -Overhead -Capital Outlay Processing Cost
23 Material % of 1 MRF ton Price/ton* Value Fiber Materials ONP 20.8% $ $ Mixed Paper 21.3% $ $ OCC 17.6% $ $ Fiber Sub-total 59.7% $ Container Materials Glass 27.4% $ (6.67) $ (1.83) Aluminum Cans 1.2% $ 1, $ Steel Cans 2.5% $ $ 1.08 PET 4.8% $ $ 7.20 HDPE (colored prices) 3.4% $ $ Mixed Plastics 0.8% $ $ 0.24 Cartons/aseptics 0.2% $ $ 0.10 Container Sub-total 40.3% $ TOTAL $ MRF Operating Costs $ Residue Costs $ 7.20 Net Cost/Revenue $ (2.24) Do the Math and you ll see why MRFs have been charging for processing Amount available for MRF profit and paying revenue to community
24 Value of a Commingled Ton Over Time Gross Value of Single Stream Ton With Glass, Not Including Residue Costs $ $ $ $ $ $ $80.00 $60.00 $40.00 $20.00 $-
25 Value of a Commingled Ton Over Time Gross Value of Single Stream Ton With Glass, Not Including Residue Costs $ $ $ $ $ $ $80.00 $60.00 $40.00 $20.00 $- The Good News:
26 Lessons From The Last Year Or So: Quality matters Communication matters Contracts matter & deals should reflect mutual dependence and mutual needs MRF Profitability Material Quality Low residue cost Committed material stream Local Govt Consistent access to processing services Predictable costs & possible revenue Info about acceptable materials Protection from unexpected costs
27 The Impact of Residue on Value of The Ton Description Gross Value of One Incoming Commingled Ton Value Average North Carolina Single Stream Ton without Residue $82.16 Average North Carolina Single Stream Ton with 10% Residue Average North Carolina Single Stream Ton with 15% Residue Assumptions: Spring 2016 pricing Full cost of residue = $65/Ton $67.45 $60.09
28 What s A Community To Do? Focus on Efficiency Recycling: More and Better More: Offer recycling service where you can: multifamily, small businesses, away-from-home Use outreach BMPs to make citizens award of all the materials they can recycle Better: Focus on Quality No shredded paper, no plastic bags, no trash, no tanglers If moving to single stream (especially drop-off systems), do the math on collecting glass separate Keep the end goal in mind: provide effective public recycling service
29 Questions / Discussion
30 Thank You Rob Taylor North Carolina Department of Environmental Quality Division of Environmental Assistance and Customer Service Phone: Web:
31 Away-from-home recycling APWA 2016 Dave Bundick Superintendent of Solid Waste City of Wilmington, NC
32 Before
33 Grant as catalyst 2013 Community Waste Reduction and Recycling grant $30K with 20% local match Away-from-home recycling focus area
34 Cart garages Permanent Presence Pleasing
35 Facility Focus High Visitation 21,600 people at amphitheater 55,000 people at the golf course 25,000 people at the nature park 11,000 people at tennis complex 950,000 people at the stadium per year Parks and Recreation staff knowledge of material disposal Management and collection
36 Cart garage - function
37 Legion Stadium
38 Hugh Morton Amphitheater at Greenfield Lake
39 Althea Gibson Tennis area at Empie Park
40 Municipal Golf Course
41 Halyburton Park
42 Introduce to the community
43 Engage the community
44 Twin the bins
45 Data Collection Parks and Public Spaces absorbed into residential collection Isolated collection found 1,450lbs in May 2014 If representative, 17,400 lbs per year Fluctuate dependent on events Materials found: Plastic bottles, aluminum cans, glass bottles and cardboard
46 Next steps Opportunities Increase recycling expansion efforts Parks, Downtown Continue to engage the community Challenges Data collection Managing contaminants
47 Event Recycling Guide
48 Advertising Focus
49 Historic Downtown Recycling There are currently nineteen recycling receptacles in Wilmington s Historic Downtown, a 23 block area that includes River Front Park.
50 2014 Community Waste Reduction and Recycling Grant Program $25,000 grant with a $5,000 match to purchase 19 Victor Stanley Recycling Containers. 19 Containers total $26,455: $1,393 each Installation cost $3,545: $187 each Approval need from the Wilmington Historic District Board Project took six months to complete from day of purchase to installation
51 Waste Audit: Downtown Recycling One week audit in May 2015 produced 1,048 gallons of recycling; 73% was recyclable material.
52 Away-from-Home Recycling Downtown Recycling Expansion NCDENR 2016 Community Waste Reduction and Recycling Grant $30,000 Grant $6,000 Grant match 23 Victor Stanley Recycling containers Estimated completion date: April 2017
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