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TOWARDS CIRCULAR PLASTIC PACKAGING :
ROLE OF VIRGIN RESIN PRODUCERS
Greener Packaging Seminar
Brussels, November 17th, 2016
« Things are only impossible until somebody does them … »
Packaging Construction / Building Automotive Electrical / Electronics Others
TOTAL’s 3 main polymers : 6 million tons annual sales (ww)
13%
9%
5%
41%
32%
4%4%
11%
24%
57%
28%
3%
29%
40%
Polystyrene
PS Polypropylene
PP
Polyethylene
PE
76 Mt 11 Mt 52 Mt
2
CIRCULAR ECONOMY : ‘THE FORCE’
3
● Circularity = very strong concept : simple and visual :
showing the direction where to go (over time)
● Creates a new hierarchy of priorities !
• « OK to optimize costs and profitability, within boundaries of
circularity »
● Comparable to ‘Safety First’ criterium that revolutionized safety
management in the industry since ~1980
• « OK to optimize cost and production, within boundaries of safety »
Umbrella citerium
No trade-offs, no confusion,
easy to understand
Waste
producers Citizens Voters
Investors
Customers
Central Driver =
capital of public sympathy
for RECYCLING
WHAT DRIVES THE CIRCULAR ECONOMY REALLY ?
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Authorities
EU
National
Regional
Local
Waste actors
Private Public
Associations /
EPR schemes
Industry
Material producers
Convertors
Brand owners
Distribution
Political
groups
Consultants
KPI’s
Rules
Criteria
Achievements Constraints
NEW ROLES AND RESPONSIBILITIES
FOR ECONOMIC ACTORS ….
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WHICH ROLE FOR A VIRGIN PLASTICS MANUFACTURER …?
Waste service providers : become material suppliers
Packaging sector : privileged position !
- main source of secondary raw material ! >60% of all plastic waste
- short shelf life : predictable availability + regulatory compliance
- packaging design = key criterium for ‘circular potential’
PLASTICS HISTORICAL SUCCESS STORY :
RELENTLESS INNOVATION FOCUSED ON (LINEAR) GROWTH
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World demand, index
!?
Can we, together, focus innovation on circularity ?
(Demand saturation expected
around 1000 MT/y)
50 MT
350 MT
TODAYS LINEAR REALITY OF PLASTIC PACKAGING
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Virgin resin
production
Innovative
design and
conversion
(Limited) collection,
focus on heavy
materials (KPI’s)
Throughput-
oriented
sorting, few
categories
Low quality, low volume, low yield recycling
Each actor innovates for own
economics
Source : Ellen MacArthur Foundation, McKinsey
(similar to paper 30 years ago… !)
CIRCULARITY AND VIRGIN PRODUCERS :
PLASTICS VERSUS OTHER COMMODITIES
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Product World
market
Estim. Recycled
content
Role of
‘virgin’ industry
Steel 1600 MT 60% Key contributor to the circular
chain :
Technology based enhancer /
stabilizer of recyclate for
downstream use as recycled
content, just like virgin material
Paper / Cardboard 400 MT 70%
Aluminium 90 MT 45%
Glass 55 MT 50%
Copper 25 MT 35%
Plastics (°) 310 MT ~9% No significant involvement
PET = exception 77 MT 25% Active cooperation to strengthen
recycling
(°) without PET : < 6%
(°)
WHY DO WE CARE …?
NEW (VIRGIN) MATERIALS SEGMENTATION !
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Linear (« fossil ») materials :
● Single use lifetime ; end-of-life = in land
or sea, or partly recovered as energy
● Little or no good recyclate available
● Impossible for converters and brand
owners to combine virgin material with
recycled content
● Gradually de-selected, and
substituted by circular materials,
wherever possible.
Circular materials :
● Multiple use lifetime ; waste = new feedstock
● Plenty of good recyclate available, for use as
recycled content
● Structural cooperation between ‘circular
stakeholders’, preserving the circularity.
● Virgin materials thrive as ‘performance
enhancer’ for ‘recycled content’
● Growth, development, new technologies and
competencies, gradually substituting linear
materials
Circularity
Support
HOW COULD TOTAL CREATE VALUE IN PLASTICS
RECYCLING ?
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Recyclers
Plastic
recyclate
rPE
rPP
rPS
Collection /
sorting
Technology,
product
development Consumer
Convertor
Brand
owner Customer intimacy:
Fulfilling unsatisfied
needs
Provide materials
science for Eco-design
Collaborative
projects
Extend accessible markets
of recyclate
Process
technology
Virgin
molecular
DESIGN
Virgin + Recyclate
Circular Compounds
On-purpose CIRCULAR design of virgin resin :
as performance booster for recyclate !
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Flex Modulus Melt Flow (HLMI)
Stress Crack Resistance (ESCR, h)
60
50 Typical virgin 5502
Typical virgin 5802
Typical recyclate
E.g. HDPE bottles for
industrial and
household liquids
Circular Compound, 50…% post-consumer
recycled content
+ 100% fragrance free :
Total’s deep decontamination process
>>600
ONGOING CIRCULAR COMPOUNDS DEVELOPMENTS
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● rHDPE
- Food contact packaging
- Injection & Blown Film
- Technical applications
● rPP
- Injection
- Food contact packaging
- Automotive
● rPS
- Technical parts
- Food contact packaging, thermoforming
NEW PLASTICS ECONOMY : CIRCULAR
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Virgin booster
production
Circular focused
eco-design conversion
& innovation
Collection of all plastics
(providing scale economics)
Sorting of all
polymers
High technology, high yield recycling Deep
decontamination /
food contact
Common care by circular
stakeholders to preserve
circularity
Recyclate
Boosting
(similar to paper today… !)
Naturel
Non-Food
REMAINING BARRIERS FOR RECYCLATE TO ACCESS VIRGIN MARKETS :
FOOD CONTACT AND MASS COLORATION
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Colored / black
Non-food
Naturel
Food contact
Color / Black
Food contact
Virgin markets segmentation Recyclate
Moon-shot developments required !
- Circular Ecodesign
- Technology
- Regulation
99%
NATURAL PACKAGING SOLUTION : UNIQUE OPPORTUNITY TO INJECT VALUE WITHOUT SUBSIDIES
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The practice to colour in the mass destroys a lot of ‘circular economics’ !
- Natural recyclate has 200 €/t more value than coloured recyclate : access to virgin markets
- Colour and marketing messages : concentrate on shrink film, removed at recycling
CIRCULAR COMPOUNDS :
ADVANTAGES FOR ALL STAKEHOLDERS
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•Circular solution for high end
•High % PCR
•Low footprint, by composition and by process
•Guaranteed quality
•No design constraints
•Equivalency to virgin resins
Brand owners
•Ready-to-use
•Guaranteed resin properties
•Compatible with current and future transformation
technologies
•Resin consistency by design
•PCR certification delivered
•Service level ‘as usual’ from virgin supplier
Converters •No disruption of the recycling industry
•New markets for recyclate
•Breakthrough for plastics recycling
Recyclers & society
Technology based ‘enhancer /
stabiliser’ of recyclate feedstock,
enabler of the circular economy for
plastics.
Virgin plastic producer’s
new role :