Foam Recycling: Facts, Figures, and Market Potential

June 23, 2015 Sponsored by Thank you!

www.avaicg.com Today’s Presenters

Kara Pochiro APR Communications Director

Brandon Shaw Marketing Manager , Plastic Recycling Inc

Diana Gentilcore Managing Director, Advocacy EPS Industry Alliance Lynn Dyer President, Foodservice Packaging Institute Association of Postconsumer Plastic Recyclers (APR)

The Voice of Plastics RecyclingTM

National trade association representing those companies with over 90% of the postconsumer plastic processing capacity in North America. APR Goals

*Increasing supply of recycled plastics*

*Reducing contamination for plastic recyclers* The Voice of Plastics RecyclingTM

APR believes that functional, attractive, and economical plastic products can be designed that are also fully compatible with material recovery and plastics reclamation systems. APR Programs

• Technical • Films and Flexibles • Rigid Plastic Recycling Program • Communications • Coming Soon- Emerging Markets The Voice of Plastics RecyclingTM

The APR is committed to working with all stakeholders to ensure that recycled plastics retain quality and value during collection, recovery, and reprocessing. Foam Recycling Opportunities

APR Webinar June 23, 2015

- DRAFT - PRG MEMBER PRESENTATION 12/12/12 Background on Foodservice Packaging Institute 10 . Established in 1933 . Only industry trade association in North America solely focused on all single-use foodservice packaging products . Members include: • Converters and their raw material and machinery suppliers (roughly 85% of the industry); • Foodservice distributors and operators Foam Foodservice Packaging: The Basics 11 . What is it? • Cups, plates, bowls, clamshells, trays (cafeteria and processor), egg packaging . How much*? • By weight: less than 1% of municipal solid waste • By units: About one-third of and plastic FSP . Where to recover it? • Curbside • Commercial and institutional

*Date sources: U.S. EPA and FPI Foam Recycling Coalition

12 . 2014: Established within FPI . Goal: Increase the recycling of post-consumer expanded polystyrene (EPS) packaging • Foodservice packaging • Transport/protective packaging Foam Recycling Coalition

13 . Current members include:

Americas Styrenics Genpak Cascades Canada ULC Hawaii Foam Products Chick-fil-A NOVA Chemicals, Inc. CKF Inc. Pactiv Foodservice/ Commodore Shell Chemical Convermex Styrolution America D&W Fine Pack TOTAL Petrochemicals Dart Corporation Dolco Packaging, A Tekni-Plex Plus funding from EPS-IA Company Dyne-A-Pak Foam Recycling Coalition

14 . Scope of Work • Provide general information on foam recycling • Research end markets • Offer grants to increase foam recycling General Information

15 . Basic steps to recycle foam . Information on foam recycling equipment, links to suppliers . FAQs on foam recycling . Links to external resources

www.recyclefoam.org End Market Study

16 . Conducted by third party in Fall 2014 . Tasks: • Examine current state of foam recycling • Analyze end markets for recycled post-consumer foam FSP . Used primary and secondary research End Market Study Results

17 . Identified nearly 140 potential end markets in the U.S. and Canada • 80 processors/recyclers (entities that separate/wash/manufacture pellets/flakes for sale to end users) • 29 end users (entities that buy mixed/sorted plastics or processed feedstocks to manufacture new products) • 28 processors/recyclers AND end users End Market Study Results

18 . Demand Growth • GBI Research: . Global demand  PS & EPS up from 13 million tons in 2000 to nearly 15 million tons in 2010  EPS demand grew at an annual rate of 5.5% during 2000-2010 . U.S. EPS demand  2010-2020: projected 2% annual growth rate End Market Study Results

19 . Demand Growth • Freedonia Group: . Packaging to be leading market for recycled plastics to 2016 . Recycled PS for export markets expected to increase 6.5% per year to 2016 . Recycled PS for the U.S. markets expected to increase 8.0% per year to 2016

Study available at www.recyclefoam.org Grant Program

20 . Purpose: • Increase public access to post-consumer foam recycling through curbside and/or drop off programs • Drive actual recovery of foam (increased tons) • Generate success stories . Provide funding for: • Foam recycling equipment (up to $50,000/grant) • Technical assistance to grant recipients and others interested in adding foam to their curbside recycling programs Grant Program

21 . May 2015: First grant announcement • Alpine Waste & Recycling (Denver, Colo.) . Largest independent, privately held waste and recycling company in the state . “Culture of innovation” . More announcements coming! More information: Contact: www.recyclefoam.org Lynn M. Dyer www.fpi.org/stewardship [email protected] 571.255.4211

- DRAFT - PRG MEMBER PRESENTATION 12/12/12 “Plastic Waste Specialists” Since 1988

A RECYCLERS PERSPECTIVE Brandon Shaw, Marketing Manager Plastic Recycling, Inc. QUICK FACTS ON PRI

 Founded in 1988  3 PRF’s in Indianapolis IN & 1 in Jefferson City TN  LARGEST Polystyrene Recycler in the USA  Recycle Rigid & Foam Post Consumer PS FEEDSTOCK SOURCES

Special Collection 

 Drop-Off Foam

MRF  RECYCLING PROCESS

 TROMMEL  OPTICAL SORTER  SIZE REDUCTION  WASH SYSTEM  SINK-FLOAT  DRYER  EXTRUDER FINISHED PRODUCT

 CLEAN FLAKE  PELLETS  RECYCLED CONTENT PS PRODUCTS BRANDON SHAW Marketing Manager P 317.780.6100 x 117 C 317.341.4469 W Plastic Recycling, Inc. Website E [email protected] EPS Industry Alliance A new era for the expanded polystyrene industry

APR Webinar ●Foam Recycling Facts, Figures & Market Potential June 23, 2015 EPS Industry Alliance National Trade Association – U.S. & Canada

 Non-Profit Trade Association representing expanded polystyrene (EPS) manufacturers covering transport packaging (non foodservice), building insulation, specialty & custom applications.  EPS Industry Alliance (formerly the Alliance of Foam Packaging Recyclers) founded in 1991 to develop industry-based recycling infrastructure.  Helps facilitate business recycling initiatives, industry take-back programs, community partnerships & special collection events.  Conducts annual EPS recycling rate survey covering 20+ year collection trend. EPS-IA Recycling Philosophy

 Industry-Based Collection Infrastructure  Emphasis On High-Volume, Commercial Sources  Material Compaction  Collection Logistics  Secured Take-Back Market  Collaborative, Shared Responsibility Partnerships  Community Based Drop-Off & Special Collection Events Presentation Agenda

 EPS Recycling History  Success Stories  Resources  Consumer Outreach EPS Recycling Survey & Report

• Since 1990 • One Of The Only Transport Packaging Materials To Report Recycling Data • One of the Highest Recycling Rates in the Plastics Family 34% Post Consumer EPS Recycling Rate

MILLIONS OF POUNDS

Post Consumer EPS Recycling Rate 1990 - 2013 Expandable Polystyrene is easily used as ‘regrind’ feedstock replacement.

Commercial Sources Provide Sufficient Quantities Material is Virtually Contamination Free 10-20% Recycled Content Used in New Products Improved Sustainability Through EPS Recycling

WATER & AIR EMISSIONS (2 – 9% Reduction) As recycling increases, atmospheric and waterborne emissions decrease or remain the same.

ENERGY USE (3 – 14% Reduction) As the recycled content of packaging increases, energy use decreases.

SOLID WASTE (5 – 21% Net Reduction) With recycling, increases in industrial waste are offset by larger decreases in post-consumer waste.

“Resources & Environmental Profile Analysis of EPS Packaging Products”, Franklin Associates, 1997 Starting An EPS Recycling Program? Things To Think About…

• Understand EPS Packaging • Conduct EPS Waste Audit • Find & Keep An EPS Recycler • Internal Operations & Policies • Material Handling & Storage • Equipment & Personnel • Implementation & Education Walmart & Polystyrene Recycling https://www.youtube.com/watch?v=WS-lIrQGC78&feature=player_embedded

Mike Hagood Senior Director Innovations Whirlpool – Sonoco Protective Solutions

 Whirlpool - Corporate goal of sending zero manufacturing or to landfills by 2022.  Existing EPS desification program not profitable or efficient.  Converted to new closed-loop recycling partnership with Sonoco Protective Solutions to backhaul approximately 1 full truckload of EPS per day from manufacturing plant.  100% of backhauled EPS is being used in the manufacture of new Whirlpool parts.  Increased EPS recycling by ~90,000 lbs; from 185,280 lbs in 2011 to 274,400 lbs in 2012.  48% increase year over year in addition to eliminating the processing and labor costs associated with the old program.  In 2012, a total of 411 cubic yards of EPS was diverted from landfills. Nutrisystem– Foam Fabricators

 Nutrisystem & Foam Fabricators partnered to provide customers with information on FF’s "reuseps.com" recycling resource.  EPS find their way into local second-life scenarios via food banks, fire stations and rescue agencies.  FF receives email every week thanking it for giving consumers recycling/reuse options. Special Collection Events

 Now 5+ Events Per Year  Permanent Drop-Off Location Established  New EPS Recycling Drop-Off Container Design  Significant Media Exposure Resulting In Positive Education

NOVA Chemicals sponsors local EPS collection events gaining incredible news coverage & valuable education. City of Houston

 Consumer & Business Access  Opportunity to Expand  Community Engagement & Education  Media Coverage  Model for Other Communities 28-Day Snapshot

953 CLICKS 17,189 773 Post FANS! Views 284,908 12,775 Unique People LIKES! Reached EPS-IA Social Media

Facebook.com/epsrecycling Who Are We Reaching?

Individual Posts Excellence In EPS Recycling Award

 Promote & Inspire EPS Recycling  Criteria  Special Programs & Initiatives  Recycling Advancement  Technology Innovation  Recognition & Promotion  Winner Announced At EPS-IA Annual Conference  Press Release  EPS-IA Website Excellence In EPS Recycling Award

Award Judges

Matthew McKenna Patty Moore President & CEO CEO Keep America Moore Recycling Assoc. Beautiful Lisa McTigue Pierce Nina Goodrich Executive Editor Executive Director Packaging Digest GreenBlue www.epsindustry.org

A Wealth of Information on EPS Questions?

Please Contact Us… Betsy Steiner Executive Director EPS Industry Alliance 1298 Cronson Boulevard, Suite 201 Crofton, MD 21114 USA Phone: 410-451-8340 Fax: 410-451-8343 [email protected] • www.epspackaging.org

Questions? Please Contact Us… EPS Industry Alliance 1298 Cronson Boulevard, Suite 201 Crofton, MD 21114 USA Phone: 410-451-8340 Fax: 410-451-8343 [email protected] • www.epspindustry.org Contact Us!

Kara Pochiro: [email protected] Lynn Dyer: [email protected] Brandon Shaw: [email protected]

Diana Gentilcore: [email protected] Coming Up… August 11th What Really Goes in that Bale? An overview of the 2015 National Mixed Rigid Bale Composition Study

September 15th Resources to Support Domestic Plastic Recycling Markets

October 27th Keep Your Caps On! A 2015 Update