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End-of-Life Product Recycling

Jaideep Gokhale,Communications & Environment Director,

Tetra Pak South Asia Marketsand Cluster Leader Environment

South & South East Asia

An Economic Measure

CII GreenCo Summit | Pune | 16 July 2013

Fresh water

Capacity (to restore, to assimilate waste)

Purity

Fish, frogs and other species

Oil

Population

Wealth

Prices

Demand for goods & energy

Epidemics

Contamination

Childhood cancer

It’s quite clear we’re hitting the limits of what nature can provide us …

End of Life Product RecyclingJG | CII GreenCo | 16 July 2013

Planning

OptionsSustainable

systems & organisations

Companies that intend to be successful for a long time need to avoid the funnel and instead find sustainability


Work as nature does …


The key challenge is to aggressively promote economic and sustainable recycling through the life

cycle of a product


‘Circular economy’ from ‘using things up’ to ‘using things’


Logistics

Innovation

OperationsCustomers

operations

Recycling

Sourcing


2020 Recycling goal:

Achieve 40% recycling rate globally

and 90% for the polyAl content.

Improve recyclability

Significantly increase recycling rates (incl. polyAl)

Key actions

GoalsObjectives

Increase recycling

Develop sustainable products

Aim for (no year defined):

100% FSC-certified paper,

100% renewable package

GoalsObjectives

GoalsObjectives

Reduce environmental footprint

across the value chain

2020 climate goal:

Cap climate impact across value

chain at 2010 levels


Six steps to higher recycling rates

1. Design for Environment for recyclability

2. Participate in industry-based recycling organisations

3. Engage consumers

4. Support recycling technologies

5. Influence public policy

6. Build public / private partnerships


Step 1: Design for Environment

Design the product to minimise its impact on the planet,

though not just through recyclability


Non-foil barrierPolymers from

renewable sourcesLess material Eco-efficient

equipment

0

10

20

30

40

50

60

70

Current profile

Future profile

g CO2 eq. / litre packed

Step 2: Participate in industry-based recycling organisations

Join producer-responsibility schemes

Increase the community’s awareness of recycling and other solid waste issues through publications, technical

research, seminars and databases

Brazilian Business Commitment for Recycling

Green Dot

Metals Recycling Association of India


//upload.wikimedia.org/wikipedia/commons/e/e6/Green_dot_logo.svg

//upload.wikimedia.org/wikipedia/commons/e/e6/Green_dot_logo.svg

…and many more

Example from industry

Consumer Awareness: bring

together all stakeholders to a

common platform to sensitize

consumers on waste / recycling /

segregation

Thought leadership: development

and dissemination of best practices

related to recycling

Advocacy: act as a common voice

for the industry; pro-actively

interact with government and other

stakeholders


Step 3: Engage consumers

Through awareness-raising campaigns

In partnership with customers, retailers and environmental

groups

The BIG challenge: how do we drive consumer discipline!

Street play as a means to educate waste pickers

Project SEARCH in partnership with TERI

Joint initiative with retail chain End of Life Product RecyclingJG | CII GreenCo | 16 July 2013

Our strategy: continue connecting the dots; focus on waste pickers, collectors and recyclers

Waste Dealers RecyclersCollectors (NGOs)

Households Road side segregation

of recyclablesLandfill

Wet waste and non

recyclables

1 2

3 4 5


1. Identify ‘godaams’ (hubs /

geographies) of waste

dealers

2. Improve collection

partners’ outreach

• Workshops

• Street Plays

• Pamphlets

• Audio Campaigns

3. Build relationships with

waste pickers

• Health Camps

• Paryavaran Mitra clubs

(Friends of Environment

club)

Continue engaging with waste pickers


Cricket Match with waste pickers

Step 4: Support recycling technologies

Evaluate, help finance and share expertise on

technologies that make recycling more efficient and profitable

Mechanical

Recycling

Technologies:

Agglomeration,

Panel Board

Thermo-

Mechanical

Recycling

Technologies:

Pyrolysis,

Gasification,

Volatilization

Chemical

Recycling

Technologies:

Delamination,

Solvent separation

Full Carton

Recycling

Technologies:

Composite

Extrusion

.

Developing a small-scale pulper


Step 5: Influence public policy

Collaborate with national and local decision makers within

government in support of effective regulatory frameworks

Advocacy focus

Influence and contribute to

• Public policy & legislation

• Stakeholder self-regulation

• Standards & definitions

Monitor emerging issues and concerns

Municipal Solid Waste Rules 2000

• Municipalities responsible for waste

management

• Poor enforcement of rules prevails

Plastic Waste Rules 2011

• Advocates recycling, recovery or disposal of plastic wastes

• Introduces EPR (manufacturers to support municipalities in

setting collection centers for plastic wastes)


Step 6: Build public / private partnerships

In line with local legislation, public authorities install

collection facilities

As members of industry organisations, we support

collection and sorting processes

Waste Pickers Waste Dealers RecyclersCollectors (NGOs)


For a successful recycling program, some prerequisites must be in place

Critical mass of collected material

Sorted (segregated) material

Sufficient market demand for possible recycled end-

products


0

100

200

300

400

500

600

700

800

900

1000

Aluminium Steel PET clear HDPE single colour mixed paper

Scrap prices£/per tonne delivered

The economics of recycling favourresource-intensive products that are easy to sort


0

200

400

600

800

1000

1200

1400

Aluminium Steel PET clear HDPE singlecolour

mixed paper

Scrap value (left bar) vs Collection costs (right bar)

Used Cartons

The cost of collecting certain low-volume materials is simply uneconomical


Trays Household tissue

Paper bags

Egg cartons

Cardboard

Envelopes Paper cores Plasterboard liner

Frozen food boxes Industrial tissue Office paper

Dry food boxes

Recovered fibre from paper-based packaging board can be recycled into various useful end-products


http://www.germes-online.com/catalog/54/56/871/page6/84491/kitchen_roll.html

http://www.germes-online.com/catalog/54/56/871/page6/84491/kitchen_roll.html

Paper retainer

Container

Basket Frisbee

CompositesPressing

Container Flower pot Hanger

Connectors

Distribution boxes

Core plugs

Similarly, high-value applications for the non-fibre (polyAl) fraction of carton packaging


The argument that a product is only recyclable if it can be

turned into a new version of itselfis a false one


Moisture &

contamination

related losses

significant

Rate marginally

attractive for small

waste dealers.

Challenge: high collection costs squeezing margins for collection partners

7.00 1.23

1.21 1.18

0.57 0.36

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Recycler

Rs. 8/kg

Cost of Collection: INR 4.55/Kg

Costs

Labor costs

and warehouse

rent gone up

Labour costs,

warehouse

rent gone up

Gap

Rs. 4/Kg

Rs. 11.5

-12 /K

g

Inefficiencies in

collections exist:

scope for

improvements

High costs due to

single material

collection?

Achieving higher

value for end products

at Recyclers’ end

critical

Absence of source

segregation putting

burden on value chain

sustainability.

UBC price must be

at premium over

price of mixed

paper (RS)


Pilot project: improving collection inefficiencies

7.00€105/MT

1.23

1.21

1.18

0.57 0.36

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Purchase Wt. loss LocalTransport

Labour Warehouse Baling Prices

Recycler

pays

INR 8 / Kg

or

€120 / MT

Cost of Collection: INR 4.55 / Kg (€ 68 / MT)

Co

sts

(IN

R/K

g)

Gap of

INR 4/ Kg

or € 60 /

MTINR

11

.50 –

12

.00

pe

r K

g

€1

73

–1

80

p

er

MT

Who pays what


How did we do it?

• Used analogy of waste paper prices

• Waste dealers are used to

differential prices by season in other waste grades

• Demonstrating moisture losses during baling

How did waste dealers react?

• Pickups stopped 15 days; then resumed

Deduction of purchase price basis moisture

13%

9%

14%

10%

6%

10%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Aug Sept Oct Nov Dec Avg.

What was the impact?Savings of at least 10% of purchase costs

Weight reduced at purchase

due to moisture

15%

23% 24%

12%

26%24% 23%

17%

0%

5%

10%

15%

20%

25%

30%

Bale1

Bale2

Bale4

Bale5

Bale6

Bale7

Bale8

Bale9

Moisture in UBC at Recycler


Minimising transport costs

Before After

No. of trips by

truck / month

33 55

Average quantity

picked up/ trip

245 288

Improve daily route mapping of

truck• Enforce at least 2 trips / day

• Start early to reach collection points

Prioritize pickups• Focus on higher volumes points

• Maximise load- factor

• Pickups after validating by field staff

Minimize hired vehicle usage• Long distance covered by own

vehicle

• Hired vehicle use for short distances


Started a joint project to leverage commonality

of waste value chain for PET and cartons

High costs due to single material collection: what are we doing on this?

Waste Picker Waste DealersConsumer

PET traders/

Collection centers

Recyclers

Carton

Collection centers

Recyclers


Ganesh: the largest used PET recycler in India

Multi Material Collection Centers

Coca Cola bottlers can

sell their PET factory waste

to Ganesha

In return, Ganesha will set

PET collection centers at

places of our choice

In order to increase

viability of such centers, will

additionally collect used

cartons.

1st Center launched in

Lucknow City

2nd being planned in Ludhiana


Deluxe Recycling

Bangalore?

Sundaram Paper

Mill, Nagpur

Deluxe Recycling

Palghar

Daman Ganga

Vapi

Challenge: Having strong recyclers with focus on profitable end-products

Case 3Pulp & R. Sheets

Case 5Wood Plastic Composites

Case 1Selling Pulp

Case 2Selling Paper

Rs.10 Rs.10 Rs.10 Rs.10 Rs.10

Rs.3 Rs.3 Rs.2.5 Rs.3

Rs.6 Rs.6 Rs.1.8

Rs.2

Rs.15

Rs.7 Rs.7

Rs.8

Rs.8

Rs.18

Rs.18

Rs.40

Rs.13

Rs.7

Rs.18.5 Rs.17.9

Rs.14 Rs.15

Rs.20

Rs.26 Rs.25

Rs.40

Rs.-

Rs.5

Rs.10

Rs.15

Rs.20

Rs.25

Rs.30

Rs.35

Rs.40

Rs.45

Costs Revenues Costs Revenues Costs Revenues Costs Revenues Costs Revenues

Cost UBC Pulping Paper Mfg Hot Press Extrusion

Case 4Paper & R.Sheets

In INR, for a Kg UBC


Today, 1 of 5 cartons recycled

South Asia Markets [India, Bangladesh, Sri Lanka,

Nepal and Bhutan]

153782

1,418

2,475

4,862

6,962

9,221

5,152

3.82

5.87

8.6

14.01

16.7

20.420.1

0

3

6

9

12

15

18

21

24

0

2,000

4,000

6,000

8,000

10,000

2007 2008 2009 2010 2011 2012 2013 Tgt 2013 YTD

UBC Recycled (Tons) Recycle Rate %



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