February 28, 2012

RIGID PLASTIC PACKAGING RECYCLING AND RECOVERYACC OVERVIEW

ACC’s Plastic Division

BASF Corporation

Bayer MaterialScience LLC

Braskem America, Inc.

Chevron Phillips Chemical Company LP

The Dow Chemical Company

DuPont

ExxonMobil Chemical Company

LANXESS Corporation

LyondellBasell Industries N.V.

NEXEO Solutions

SABIC Innovative Plastics

Solvay America, Inc.

Styron LLC

TOTAL Petrochemicals USA, Inc.

Vinyl Institute*

*Designates affiliated trade association

The Plastics Division of the American Chemistry Council (ACC) represents leading manufacturers of plastic resins. The American Chemistry Council's Plastics Division is comprised of 14 of the leading resin manufacturers, plus one affiliated trade association representing the vinyl industry.

Who do we communicate

and work with?

What do we bring to the

table?

• Value chain companies and organizations: brand owners, retailers, aligned trade associations

• Government – Decision Makers

• Non-government organizations

The Plastic industry:

• Creates and reports on a wealth of data and research

• Provides the latest news on plastic trends, and

• Works collectively with organizations and government on projects to improve end-of-life opportunities for plastics

Education

Why do we use

plastics?

• Reduce Material Use and Weight

• Maintain Freshness

• Reduce Breakage

• Reduce transportation costs through light weighting

• Economical

Plastics also have

positive environmental attributes

• Plastics reduce energy use by 61% and greenhouse gas emissions by 57% across variety of applications compared to alternatives.

1 Denkstatt, “The impact of plastics on life cycle energy consumption and

greenhouse gas emissions in Europe,” June 2010

Reporting

1 US EPA Municipal Solid Waste in the US Facts and Figures (2010)

2 ACC “2010 National Post-Consumer Plastics Bottle Recycling Report,”

3 ACC “2010 United States National Post Consumer Report on Non-Bottle Rigid Plastics Recycling,

Recycling SuccessUS EPA: more than 4.7 billion pounds of plastic are recycled annually1

2010: more than 2.5 billion lbs. of plastic bottles were collected for recycling2

California: more than 66% have curbside recycling of all plastic containers3

4 “Final Report—Life Cycle Inventory of 100% Postconsumer HDPE and PET Recycled Resin from Postconsumer Containers and Packaging,” published 2010.

Environmental Benefits

of Plastic Recycling

Existing plastic recycling, particularly PET and HDPE, results in significant savings in energy and greenhouse gas emissions

The amount of energy saved by recycling PET and HDPE containers including bottles in 2008 was the equivalent to the annual energy use of 750,000 U.S. homes.

The corresponding savings in greenhouse gas emissions was an amount comparable to taking 360,000 cars off the road4.

2010 Non-bottle Rigid Report

Key Findings:

• In 2010, nearly 862 M lbs. of post-consumer rigid plastics were collected for recycling nationwide– an increase of ~ 72 % from 2009

• Increase in the number of processors, end users and reclaimers of rigid plastics

• Number of communities offering rigid plastics recycling continues to increase

• At least 94% of the U.S. population has access to PET and HDPE bottle recycling

• 40% has access to, at least, all plastic bottles and all non-bottle rigid containers

• 48% has access to non bottle PP recycling of items such as yogurt tubs

• Identified 1,137 cities and 215 unincorporated areas of counties in the U.S. that collect all non-bottle rigid plastics

National Plastic Recycling Collection: National Reach

Study

More cities collecting rigid plastics

• Among top 100, non-bottle recycling has doubled to 59 of 100 from 29 in 2008.

• 71 of top 100 had access beyond PET and HDPE bottle recycling, compared to 38 in 2008.

Cities Adopting Non-bottle Rigid Recycling

•New York City, NY• New legislation implemented in 2010 to recycle all rigid plastic

containers• Will place 300 recycling bins in public areas in the next three

years and 700 within a decade

•Philadelphia, PA• Now accepting rigid plastics• Recycling has risen to 16 percent as the city has added

materials, moved to weekly collections, and switched to "single-stream" recycling

•Connecticut Communities• Starting May 2010, residents of 64 Mid-Connecticut communities

began to recycle “all plastic food and beverage containers.”

Collaboration

APR’sBale

Audits Specification

s& Definitions

Project

•Determine Volume of Rigid Plastic Collection in North America.

•Determine what is in these rigid bales.

•Bring transparency to both buyers and sellers.

•Grow rigids recycling in North America.

Existing Rigid Bale Definitions

The voice of plastics recycling

APR Rigid Plastics Recycling Program

PET/HDPEBottles

Bottlesother than PET/HDPE

Non-bottle Containers

Bulky Rigid Plastics

All Rigid Plastics X X X X

Pre-picked Rigids X X X

Bottles & Containers X X X

Household Containers X X

Tubs & Lids PE and PP only

Olefin Bale HDPE only PE and PP only PE and PP only PE and PP only

Bulky Rigids X

APR Bale Definitions Project

The voice of plastics recycling

APR Rigid Plastics Recycling Program

The Project…………..

Sorting up to 50 bales from 3 US and 2 Canadian locations into 17 different categories and, using a wide range of data sources,

answering important questions –

What are the types, volumes & destination of rigid plastics currently being recycling?

What is the type & tonnage of rigid plastics available for recycling?

Bale Audit Findings

The voice of plastics recycling

APR Rigid Plastics Recycling Program

Sort Results……Pre-Picked Rigid Bales

Non-PET/HDPE Bottles, all household non-bottle containers (includes thermoform packaging, cups, trays, clamshells, food tubs)and all bulky rigid plastic

Working with Virginia

Peninsula

ACC wants to help provide resources to assist in expanding rigid plastic recycling programs

Work with communities where ACC members are located, talking with:

City Recycling Staff

Regional & State Organizations

Local & Regional Haulers

Create resources to educate communities on rigid recycling:

Market/buyers list

Grassroots letter to city council

Universal education language

Education with Numbers

Plastics Recycling Outreach

A Joint Project by ACC and APR

Encouraging the Collection of Bottles and Containers

Opportunities to Increase Non-Bottle Rigid Plastic Recycling

American Chemistry Council (ACC) Efforts•Documenting the availability of raw material•Detailing the types and efficacy of plastic recycling technologies•Illustrating depth of current and potential demand for products

Association of Post-Consumer Plastics Recyclers (APR) Efforts• Need for consistent, clear education – APR Rigids definitions project• Enforceable reclaimer-generated bale specifications• Working with grocers to learn amount of rigids in their stores and working to create solutions for

recycling

APR Bale Definitions Project

The voice of plastics recycling

APR Rigid Plastics Recycling Program

PET/HDPEBottles

Bottlesother than PET/HDPE

Non-bottle Containers

Bulky Rigid Plastics

All Rigid Plastics X X X X

Pre-picked Rigids X X X

Bottles & Containers X X X

Household Containers X X

Tubs & Lids PE and PP only

Olefin Bale HDPE only PE and PP only PE and PP only PE and PP only

Bulky Rigids X

Energy Recovery

Limits on Recycling

• Technical Challenges• Foodservice ware • Multi-layer/multi-material food packaging

• Cost Challenges• Collection, Sorting, Cleaning, Transport

• Infrastructure Challenges• Inconsistent national approach• Curbside vs Deposits vs Depots vs Retail Store

• Confusing Material Codes25

Energy Values

U.S. COAL

U.S. COAL

PETROLEUM COKE

NON-RECYCLED PLASTICS

CRUDE OIL

NATURAL GAS

0 5,000 10,000 15,000 20,000 25,000

Natural Gas = 20,300 Btu/lb Crude Oil = 18,400 Btu/lb NRP = 14,000 Btu/lb Pet Coke = 12,700 Btu/lb Coal (High) = 11,200 Btu/lb Coal (Low) = 9,800 Btu/lb

Plastics to Oil Technology Study

• “Conversion Technology – A complement to recycling”

• Technologies specifically designed to convert plastics to energy• Pyrolysis• Chemical feedstock recovery

• Commercial scale facilities being operationalized in Europe and Asia

• Demonstration projects in North America• Under ISO 15270 conversion technologies qualify

as recycling

Solid Recovered Fuel • Plastics as solid fuel at

cement kilns, industrial boilers, power plants.

• Partnership with University of Texas.

• Study at ASME Conference

• Understand - economic, logistical, regulatory, and energy barriers to success

Source: Plastics Europe

Higher Recovery is Possible

Plastics Energy Recovery

Team

(PERT)

Technical/Research

• Energy Value of Plastics

• Solid Recovery Fuels

• Life Cycle

• Emerging Technologies

• Plastics to Oil

• Key Partnerships

• Communications/Advocacy

Thank You