Plastics Recycling Update Magazine

Updated: 19 hours 22 min ago

EPA works to explain shifting recycling rate

Fri, 02/17/2012 - 09:11
EPA works to explain shifting recycling rate

By Henry Leineweber, Resource Recycling

The Environmental Protection Agency has found itself having to explain recent changes that dramatically altered its calculation of the PET recycling rate.

When the EPA released its 2010 Municipal Solid Waste Characterization Study, the PET recycling rate was calculated to be 29.2 percent. As a point of reference, the PET recycling rate for 2009 and 2008 – using the same methodology – was 28.0 percent and 27.0 percent, respectively.

However, using the new method of calculating the PET recycling rate, which subtracts caps, lids and other materials, the PET recycling rate for 2010 was revised down to 21 in November of 2011.

"We need to start reporting what is actually recycled, not what is collected for recycling," said Susan Collins, executive director of the Container Recycling Institute in a letter to the EPA last September. "Process losses occur at the materials recovery facility when contaminants are removed and even greater levels of contamination are removed when materials arrive at paper mills, plastics reclaimers and the like."

Collins was one of many industry stakeholders that participated in a process to improve the accuracy of the recycling rate, but has since raised questions about the way the methodology was revised and what happened to the stakeholder input.

"We've calculated the PET recycling rate the same way for the past 40 years," explains EPA acting branch chief Ron Vance, speaking with Plastics Recycling Update. "In last year's report, we used a revised methodology that we developed with public input, and really tried to give it a fresh look – make it more accurate."

"It essentially crashed the recycling rate," admits Vance. "As a year-over-year comparison, it was obvious the new numbers were going to be a problem. So we re-revised them."

The revised fact sheet and data tables released last November, were then amended to include a "gross" recycling rate of 29.2 percent, which reflects the traditional methodology, and the "net" recycling rate of 21.0 percent, which uses the new methodology. Both methodologies estimate the total volume of PET using commodity production numbers from the Department of Commerce.

The EPA says it is now moving to a phased rollout of the new methodology, to provide more accurate year-over-year recycling rate comparisons. The public comment process on future revisions will be done in stages and may take longer than a year. However, the EPA says revisions to account for caps, labels and other materials in the PET stream are definitely on the way.

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PetroChem Wire: HDPE buyers wary, prices stable

Fri, 02/17/2012 - 09:10
PetroChem Wire: HDPE buyers wary, prices stable

By Editorial Staff, Resource Recycling

Uncertainty about prime grade polyethylene pricing in January kept recycled PE prices from further erosion in the beginning of 2012 despite tepid demand from some end-use markets.

In pellet markets, HDPE fractional melt pipe grade mixed colored material remained low at around 50 cents per pound, while natural film-grade HDPE pellets remained at the high end of recycled HDPE pricing near the mid-60s–cents-per-pound level. HDPE regrind pricing stayed in the low to mid-40s-cents-per-pound-range for many grades, with natural film-grade recycled HDPE holding around 50 cents per pound.

In the prime HDPE domestic spot market in early February older inventories were clearing out and being replaced by higher cost material, but buyers were reluctant to purchase prime material at the full 6 cents per pound price increase. But by the second week in February, offers of prime fractional melt HDPE were being made in the mid-60s cents per pound delivered east of the Rockies.

For more information about PetroChem Wire's Repro/Regrind Resin Report and daily prime grade polymers and monomers report, or to arrange a free trial subscription, contact Cindy Bryan at cidy@petrochemwire.com.

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Bag and film report authors respond to criticism

Fri, 02/17/2012 - 09:09
Bag and film report authors respond to criticism

By Editorial Staff, Resource Recycling

The controversy around the recently released National Postconsumer Plastic Bag and Film Recycling Report continues, with Moore Recycling Associates and the American Chemistry Council both defending the report from criticism.

Responding to criticism that the report used "selective reporting and a questionable methodology," levied by Californians Against Waste, Moore Recycling Associates issued a statement saying CAW used "very misleading facts and figures in an attempt to downplay the positive news."

"It is true there was an increase in film and bag generation from 2009 to 2010 according to the EPA figures, but the increase of all bags, sacks and wraps was only 160 million pounds and the increase in recycling was 220 million pounds," read the statement. "And, over a three year period (2008-2010) recycling gains are even more impressive. According to the EPA data, recycling of bags, sacks and wraps grew by 120 million pounds, while sales of the same decreased by 60 million pounds."

Keith Christman, senior director of packaging for the American Chemistry Council's Plastics Division agreed.

"The way CAW uses data is misleading," says Christman. "They say that bag recycling is a failure, but the report itself combines bag and film recycling, since that's how they are collected and baled at grocery stores. Table 21 in the EPA's report shows that the bag and film recycling rate more than doubled from 5 percent to 11.5 percent between 2005 and 2010."

Both Moore Recycling and the ACC say they stand by their methodology and the findings of the report, arguing that recycling, rather than bans or taxes, is the best way to accommodate the controversial material.

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Patent watch

Fri, 02/17/2012 - 09:05
Patent watch

Joseph Keating has received Patent No. 8,113,448, which describes a method of recycling carpet components.

Japanese firm Teijin Fibers Ltd. has received Patent No. 8,113,354, describing a method of sorting mixed plastic. Specifically, the process is designed to separate PET bottles from PE or PP caps.

Taiwan's National Tsing Hua University has filed Patent Application No. 20120035365, which describes a method for manufacturing porous material from scrap PET bottles and transition metals.

Oregon-based Agilyx Corp. has submitted Patent Application No. 20120034571, outlining a method for recycling plastic using sealed cartridges.

Patent Application No. 20120032009 has been filed by Berry Plastics Corp. of Indiana. It describes a process of separating plastics from metals.

Georgia-based Nyloboard LLC has submitted a patent application for a waterproof plywood substitute made from recycled carpet and textiles. The process is described in Patent Application No. 20120031543.

For more information on these or any patents, please consult the U.S. Patent Office database online.

Copies of patents can be ordered by number for $3 each from the Commissioner of Patents and Trademarks, P.O. Box 1450, Alexandria, VA, 22313-1450.

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PetroChem Wire: Recycled PET prices slide in early 2012

Fri, 02/10/2012 - 09:28
PetroChem Wire: Recycled PET prices slide in early 2012

Prices for flake and pellet forms of recycled PET dropped around 2-3 cents per pound in January, but sales were relatively sluggish as buyers waited to see if the price declines would extend into February.

FDA-grade pellet pricing eased to the 90-93 cents per pound range last month for clear material and to the 82-85 cents per pound range for green material. Regrind rPET prices slipped to the low-60s cents per pound range for green strapping and staple fiber grades. Regrind clear rPET for filament fiber was in the low-70s cents per pound in January, with clear rPET regrind for food packaging uses around the mid-70s cents per pound.

For more information about PetroChem Wire's Repro/Regrind Resin Report and daily prime grade polymers and monomers report, or to arrange a free trial subscription, contact Cindy Bryan at cindy@petrochemwire.com.

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San Francisco widens scope of bag ban

Fri, 02/10/2012 - 09:27
San Francisco widens scope of bag ban

By Editorial Staff, Resource Recycling

San Francisco will extended its plastic bag ban from large grocery stores and chain pharmacies to restaurants, gift shops, hardware stores, boutiques and other retailers under an ordinance approved by the city's Board of Supervisors earlier this week.

The ordinance also requires shoppers in San Francisco to pay 10 cents each for any other type of bag (i.e. paper) they request at checkout, reports Associated Press via The Washington Post. San Francisco became the first major city in the country to ban plastic grocery bags with a 2007 ordinance. Since then, similar bans have proliferated across the state and elsewhere.

The ordinance is supported by the mayor, the San Francisco Chamber of Commerce, the California Grocers Association and the city's Small Business Commission. It also creates an exemption for items such as loose nails, dry cleaning and bulk candy.

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Patent watch

Fri, 02/10/2012 - 09:26
Patent watch

Patent No. 8,110,131 has been awarded to Sergio Dell'Orco and Frank Levy, describing a system for separating PP or PVC carpet fibers and sending them to an extruder and pelletizer.

Belgian firm Galactic S.A. has filed Patent Application No. 20120029228, which describes a process of recycling polylactic acid by dissolving and depolymerizing the plastic in a solution.

Riyadh, Saudi Arabia-based King Abdulaziz City for Science and Technology has filed Patent Application No. 20120022216, outlining a process for preparing thermal insulation sheets from unseparated mixtures of PET, HDPE and PS.

Patent Application No. 20120024686 has been filed by Tigard, Oregon-based Agilyx, describing a system and method for converting scrap plastic into purified synthetic crude oil.

For more information on these or any patents, please consult the U.S. Patent Office database online.

Copies of patents can be ordered by number for $3 each from the Commissioner of Patents and Trademarks, P.O. Box 1450, Alexandria, VA, 22313-1450.

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Vermont EPR bill dies

Thu, 02/02/2012 - 14:35
Vermont EPR bill dies

By Jake Thomas, Resource Recycling

A controversial bill in Vermont that would require makers of packaging and printed materials to pay for the collection and recycling of their products has been snuffed – for now.

House Bill 218 would have established what might have been the most far-reaching extended producer responsibility program in the country, requiring makers of packaging and printed products to finance the recovery, recycling and transport of these materials once consumers had discarded them.

Under the legislation, companies making these products would have been required to submit a plan to the state on how they would provide collection of covered items in residential, industrial, commercial and institutional settings. Collection plans, under the bill, would have needed a public outreach component and to achieve a minimum 60 percent recovery rate within five years. The proposed legislation would have expanded Vermont's current EPR framework, which currently encompasses electronics and mercury-containing materials.

According to Andrew MacLean, a lobbyist who represents the Beverage Association of Vermont, the state's beverage industry has long been saddled with high handling fees under the state's bottle bill. The industry, he says, wanted to replace it with something that would be less burdensome, but would still drive recycling in the state.

"The thought was, how can we deal with a bottle bill that seems outdated and is an anachronism and support something that is much better environmentally?" says MacLean, noting that Vermont is a state long concerned about the environment, but has recycling rates around 30 percent.

Efforts to pass the EPR bill began four years ago, and earlier versions of the legislation contained a provision to repeal the state's bottle bill, says MacLean. That provision, which was taken out in the most recent version of the bill, along with concerns about funding, fees and implementation prevented the legislation from gaining traction, he says.

"The way [the bill] was written galvanized certain groups to make certain assumptions about the bottle bill," says Rep. Tony Klein, chair of the House Natural Resources and Energy Committee, where the bill languished. "We were never able to get beyond that discussion."

The state's 40-year-old bottle bill attaches a nickel deposit to beer and soft drinks containers and a 15-cent deposit on liquor bottles. Environmental and recycling advocates treated the legislation as an attempt by the beverage industry to repeal the bottle bill, which they viewed as a cherished and effective recovery mechanism that the Container Recycling Institute says has pushed recycling rates of covered containers to 85 percent.

The American Forest & Paper Association also opposed the bill. A statement from the industry group points out that the recycling recovery rate for paper is already above the 60 percent mandated by the legislation, which would have subjected paper makers to EPR fees and requirements. The association also has plans to drive that rate even higher, without using EPR mandates.

"AF&PA supports voluntary paper and paper-based packaging recovery efforts and seeks to improve upon the existing recovery and recycling programs in the United States," reads a statement from the association to Resource Recycling. "We believe market forces should guide paper and paper-based packaging recycling and recovery systems in order to promote waste reduction."

In response to the bill's failure, Klein has introduced H 485, which seeks to conduct a thorough assessment of the state's solid waste and recycling systems with the aim of finding inefficiencies and opportunities to increase the state's recycling rate. He says that this issue is becoming more urgent as one of the state's two landfills is slated to close.

The Vermont Public Interest Research Group, which had opposed the earlier EPR bill, is more receptive to this effort.

"It's definitely something that we at VPIRG support the concept of," says Lauren Hierl, environmental health advocate for the organization. "We look forward to hashing out the details of the bill."

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PetroChem Wire: Polystyrene prices increase on tight supply

Thu, 02/02/2012 - 14:34
PetroChem Wire: Polystyrene prices increase on tight supply

Following the rise in prime polystyrene prices, suppliers of recycled PS increased their prices three to four cents per pound in January and expect further gains in February.

HIPS pellets pricing reached the upper 70s cents per pound, with some offers for white material seen close to 80 cents per pound, and black HIPS pellets about a penny under white. GPPS pellet pricing was in the low to mid-50 cents per pound range for mixed color and black material, with white GPPS pellets in the upper 50s and natural closer to 60 cents per pound. Regrind prices for HIPS and GPPS were also higher in January, with GPPS mixed color and black at or just above the mid 40s cents per pound, and natural and white flake grade reaching the 50 cents per pound level.

In the prime polystyrene market, spot PS prices continued to edge higher as January came to a close and producers prepared to implement February price increases of five cents per pound on GPPS and seven cents per pound on HIPS. Availability of off grade material remained relatively low, and high-heat crystal was reportedly scarce in the secondary market.

For more information about PetroChem Wire's Repro/Regrind Resin Report and daily prime grade polymers and monomers report, or to arrange a free trial subscription, contact Cindy Bryan at cindy@petrochemwire.com.

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Consumers should leave caps on, according to recycling industry

Thu, 02/02/2012 - 14:33
Consumers should leave caps on, according to recycling industry

By Editorial Staff, Resource Recycling

The Closure and Container Manufacturers Association, a packaging trade group, and the Association of Postconsumer Plastic Recyclers are asking consumers to leave "Caps On" when residents recycle their bottles.

The two organizations launched the "Caps On" initiative to increase recycling of caps along with plastic bottles and will be developing educational materials, while also working with haulers and MRFs to get their support. The duo stresses that although its message is contrary to long-standing recycling requirements, there are domestic markets that are hungry for materials used in caps. The backers of the initiative also expect it to be a long-term project as communities make the shift, particularly with processing equipment.

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Could Austin be the next bag-free city?

Thu, 02/02/2012 - 14:33
Could Austin be the next bag-free city?

By Jake Thomas, Resource Recycling

Austin, Texas is finalizing its plastic bag ban, which could be voted on by the Lone Star State capital's city council next month.

If approved, the ordinance, which is in its third draft, would go into effect in March 2014 and would ban all single-use paper and plastic bags, reports the Austin American-Statesman. Between March 2013 and when the ban goes into effect, retailers could offer bags if they charge customers 10 cents each or a transaction fee of $1. Part of the fee would go to the city to promote reusable bag use.

South Carolina plastic bag maker Hilex Poly and the American Progressive Bag Alliance are opposing the ordinance, saying that it will cost 8,800 jobs in Texas. The group is calling for a statewide recycling program, rather than the ban.

So far, the Texas communities of Brownsville, South Padre Island and Fort Stockton have banned plastic bags.

In other bag-ban news, the Story of Stuff Project, a nonprofit organization best known for producing animated movies about the human race's adverse impact on the natural world in pursuit of stuff, has launched a new series of podcasts, the first of which is titled "Take THAT, plastic bags!" The podcast features interviews with anti-plastic bag activists like Chico Bags founder Andy Keller and Rose Timmer, who helped with the Brownsville, Texas ban.

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Iowa bottle bill tweak aims to save redemption centers

Thu, 02/02/2012 - 14:31
Iowa bottle bill tweak aims to save redemption centers

By Jake Thomas, Resource Recycling

Iowa lawmakers are considering tinkering with the state's bottle bill in order to improve redemption center operations.

A proposal being floated in the Iowa General Assembly would allow redemption centers to pay consumers only four cents out of the nickel deposit on bottles and cans covered by the state's bottle bill, reports the Quad-City Times. The legislation is meant to help the redemption centers keep afloat and cope with rising business expenses. Redemption centers in Massachusetts are struggling with a similar situation.

The Iowa bottle bill has been the source of perennial skirmishes in the legislature, with some lawmakers attempting to repeal it outright. The paper reports that the Iowa grocery, bottling and distribution lobbies are not in favor of the proposal because they see it as helping sustain a system that they view as overall problematic. The Iowa State Association of Counties, on the other hand, supports it.

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WRAP releases container collection guide

Thu, 02/02/2012 - 14:31
WRAP releases container collection guide

By Editorial Staff, Resource Recycling

Anticipating demand for post-consumer PET and HDPE containers to rise, the U.K.'s Waste & Resources Action Programme has released a new technical guide to help local authorities capture the material.

"Back in 2000, only around 12,000 tonnes of plastic bottles were recycled in the UK – it's now nearly 20 times that amount," said Linda Crichton, WRAP head of collections, in a prepared statement. "We're also seeing rapid growth in domestic infrastructure to reprocess plastic bottles, some of which are even producing recycled food grade materials. Around half of the plastic bottles collected for recycling are now reprocessed in the UK."

The guide, which is geared toward waste-collecting authorities across the pond, covers how to collect high quality materials, the types of curbside collection and their advantages. WRAP also plans to release another guide on the collection of rigid household plastic packaging.

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NewsBits

Thu, 02/02/2012 - 14:29
NewsBits

Perpetual Recycling Solutions has announced plans to open a new 110 million pound capacity food-grade rPET plant in Richmond, Indiana. Over the next several weeks, the company will begin retrofitting a 100,000 square foot facility, with plans to begin operations in December of this year.

The Institute of Scrap Recycling Industries is on track to approve new specifications for mixed-color HDPE buckets and drums. For details: jonathanlevy@isri.org.

Advanced Environmental Recycling Technologies was recently awarded a series of patents relating to plastics recycling. Patent No. 8,101,100, No. 8,106,103 and No. 8,106,104 all relate to separating and processing mixed plastics based on density, color or desired content.

The International Bottled Water Association say a University of Vermont ban on bottled water doesn't make any sense, given the university's recent mandate that a third of the beverages in vending machine be healthy options. The IBWA says bottled water is not only the healthiest drink, but makes up just 0.03 percent of the U.S. waste stream.

Researchers at Yale University have discovered a new fungus that can survive – and thrive – on a steady diet of polyurethane. The fungus seems to be able to live in either aerobic or anaerobic environments and researchers are hoping the discovery leads to new ways of dealing with landfilled plastic.

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Plastic export volume plummets in November

Fri, 01/27/2012 - 14:58
Plastic export volume plummets in November

By Editorial Staff, Resource Recycling

The volume of plastic scrap exported in November, at 362.811 million pounds, was down 12.15 percent from its October figure. The volume also dropped when matched against its November 2010 position, with a 16.2 percent decrease in the volume of exports.

The weighted average price of recovered plastic exports in November, at 22.14 cents per pound, was down 4.98 percent from its October standing. When compared to its November 2010 standing, the price also dropped, decreasing by 6.2 percent.

Through November 2011, at 4.34 billion pounds, the volume of recovered plastics exported was up 5.2 percent from its 2010 year-to-date (YTD) figure. Also, at 20.68 cents per pound, the average price through November was up 13.1 percent from the first 11 months of 2010.

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PetroChem Wire: Recycled PE pellet down, flake steady

Fri, 01/27/2012 - 14:57
PetroChem Wire: Recycled PE pellet down, flake steady

By Editorial Staff, Resource Recycling

Demand for recycled PE in many industries remained sluggish as 2011 came to a close. This resulted in modest price declines for both HDPE and LDPE pellets, although prices for flake material appeared to hold steady, reflecting a tighter scrap market.

Most repro PE grades slipped 1-2 cents per pound during December. Dairy, natural HDPE pellets ended the year just over 60 cents per pound, with colored material used for pipe manufacture closer to 52-53 cents per pound. Natural film-grade LDPE pellets hovered just under 60 cents at the end of last year. In most cases flake prices for various grades of recycled HDPE were 10-15 cents per pound under pellet prices.

In the prime polyethylene market, January price increases have been under discussion recently. Limited quantities of HDPE blow mold traded this week in the low 60s cents per pound railcar FOB Houston for January and February delivery. LDPE product shortages continued to be reported at a couple of suppliers in late January, with fractional melt grades primarily affected.

For more information about PetroChem Wire's Repro/Regrind Resin Report and daily prime grade polymers and monomers report, or to arrange a free trial subscription, contact Cindy Bryan at cindy@petrochemwire.com.

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The latest plastic lobbying data released

Fri, 01/27/2012 - 14:56
The latest plastic lobbying data released

By Jake Thomas, Resource Recycling

Unlike electronics, solid waste, energy and other forms of recycling and waste management, legislative battles over plastic typically take place at the state level and revolve around potential plastic bag regulation, container deposits, packaging or other issues. Nevertheless, firms involved in the plastics recycling industry could still be found on Capitol Hill in the last months of 2011, as seen in the latest release of quarterly lobbying numbers.

The American Chemistry Council spent $600,000 on hiring 11 lobbying firms during the last quarter of 2011 primarily to lobby on regulatory and tax issues. The trade group also reported $5.4 million in expense to directly lobby Congress. However, a review of filings by PRU shows that the ACC did not lobby on any issue that had a clear connection to plastics recycling.

The Coca-Cola Company spent nearly $200,000 on six lobbying firms during the last quarter of 2011, according to filings. The lobbying firms were hired by the beverage giant to influence legislation on taxes, nutritional issues, proposed regulations by the Federal Trade Commission, contracting with the Department of Defense and agricultural issues. Filings also show that Coke was active in "Ensuring choice and fairness in food assistance programs" while also promoting the company's "voluntary marketing to children policy" and funding for physical education. Additionally, the company sought to oppose "programs that discriminate against specific foods and beverages," according to filings.

Of the money Coke spent during the last quarter of 2011 on lobbying included $50,000 on Fierce, Isakowitz & Blalock, a Republican-leaning lobbying firm. The firm sent a handful of former congressional staffers to exert influence on Congress to promote "[p]ackaging innovation, comprehensive recycling programs, species protection program, and infrastructure and water stewardship."

Additionally, Coke reported $1.15 million in expenses for the last quarter to directly lobby Congress and the U.S. Department of Agriculture on promoting "sustainability initiatives, packaging innovation, comprehensive recycling programs and water stewardship."

Hilex Poly, a South Carolina-based manufacturer of plastic bags, spent $40,000 on lobbying firm Nelson, Mullins, Riley & Scarborough to influence Congress on tax issues. The company's lobbying filings for the rest of 2011 were virtually identical.

Waste Management spent virtually the same amount of money in the fourth quarter of 2011 as it did the previous quarter. It spent $30,000 on lobbyist James Boland to attempt to influence lawmakers on issues of coal residuals and tax incentives for the use of natural gas vehicles.

The Houston-based company also spent $30,000 on lobbying firm Bracewell & Giuliani, LLP to influence legislation on taxes, climate change, waste-to-energy and electronic waste. The waste-and-recycling giant also shelled out $80,000 to Gephardt Group Government Affairs, headed by former House Minority Leader Dick Gephardt, on congressional appropriations, the EPA Regulatory Relief Act of 2011 and other issues. The waste giant spent the same amount the previous quarter for all three firms.

The National Solid Wastes Management Association spent $10,000 on lobbyist Richard Goodstein, the same lobbyist the organization hired last quarter for the same amount, to lobby on nearly the same issues of electronics waste and interstate waste legislation.

Republic Services spent $50,000 during the fourth quarter of 2011 on Blank Rome Government Relations, the same firm as last quarter for the same amount, to lobby on issues of waste management, climate legislation and other issues.

Covanta Energy Corporation's lobbying activities in the fourth quarter were nearly identical to those of the previous quarter, spending $160,000 on two lobbying firms to push for more municipal waste-to-energy facilities. The company was also pushing to get the form of energy production classified as renewable.

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UK bottle recycling rate at 50 percent

Fri, 01/27/2012 - 14:56
UK bottle recycling rate at 50 percent

By Editorial Staff, Resource Recycling

PET and HDPE recycling rates are edging up in the UK, according to plastics market research firm Axion Consulting.

The recycling rate for both PET and HDPE beverage containers sits at 50 percent, according to the company, which identified the need to increase collection volumes further as a primary focus for the industry in 2012. In addition to expanded curbside service, a focus on non-bottle rigid packaging, MRF optimization and continued development of dedicated plastic recovery facilities (PRFs) will all be keys to plastic recycling's growth over this year, and subsequent years, according to Axion. The first such facility opened nearly a year ago, in March 2011.

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NewsBits

Fri, 01/27/2012 - 14:55
NewsBits

PepsiCo has brought its DreamMachine, its away-from-home recycling initiative that rewards consumers for turning in their bottles and cans, to the James R. Thompson Center in downtown Chicago, giving commuters, visitors and residents an alternative to trashing their recyclables.

AT&T is now using sugarcane-derived PET plastic manufactured by Klockner Pentaplast for its wireless accessory packaging, according to Plastics Today.

Advanced Environmental Recycling Technologies has been awarded Patent No. 8,101,100, which describes a method of processing and reforming contaminated mixed plastic waste.

California's Alameda County Waste Management Authority has enacted a pair of ordinances that relate to recycling. The first requires recycling at businesses and multifamily units. The second enacts a ban on single-use plastic bags and levies a 10-cent fee on paper bags.

'The word "sustainable" is no longer sustainable,' says the website XKCD. He must see the press releases clogging our inboxes every morning.

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Pessimism abounds for PE recycling industry

Thu, 01/19/2012 - 13:19
Pessimism abounds for PE recycling industry

By Jerry Powell, Resource Recycling

Market observers are suggesting the value of recovered polyethylene will trend downward due to weakening primary feedstock prices.

The key reason recycling prices will go nowhere, say market analysts, is that there's way too much natural gas and ethane available in North America. Natural gas prices, which are now at a two-year low, fell by on third in 2011, and ethane (a liquid produced in natural-gas drilling) is at an 11-month low. The natural-gas and ethane glut translates to cheaper-than-normal ethylene, and recovered PE reclaimers must push bale prices lower in order to compete against low-cost virgin resin. Several energy analysts predict natural gas prices could drop another 25 percent by the end of the summer.

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