Sher-Results

LLC

Ron Sherga, OwnerSherresults LLC

STAR Summit 2009State of Texas Alliance for

Recycling

http://www.ronsherga.com

Sher-

Results,LLC

Juergen Daum a German consultant and author of Intangible Assets & Value Creation

“The proportion of a company’s total market value that exceeds its book

value has increased from 40% in the 80’s to over 80% in the 90’s. This

means that only 20% of a company’s value is reflected in the accounting

system”

Why do we want to recycle plastics?

Biggest creators of plastic scrapPackaging-some landfill studies report that

over 70% of waste is from packagingE waste- appliances, TV’s, anything with a

plug or batteryMedical related and personal hygeineAuto and other transportTextile-this includes clothing , flooring,

furnishingsAg relatedC & D debris- piping, conduit, roofing

materials

Challenges and issues related to recycling and recovery of plastic/polymer scrap Transportation costs if LTL or light materialsProduct ID……..especially for black materials where an Infra Red scanner will not workCost to acquire separation technology for mixed materials like auto shredder fluff or packaging materialsPlastics have been demonized by media and poor scienceAccess to capital todayForeign contamination-paper ,metal , organics, moisture ,etcVariety of plastics – might be the famous 7 symbols…but thousands of gradesLack of market transparency….no yellow sheet like we find in paperFragmented streams of control…waste firms, paper firms. Metal companies, E waste ,etcCompeting export marketNot the ONLY scrap material being looked at for end use markets….C&D debris , paper, reuse, metals, etc.Lack of end markets to absorb recovered materials at a value proposition-biggest barrier in my opinionLack of environmental credits for polymers which could drive more recovery via Cap & Trade 

Energy Savings/CO2 ImpactEnergy Savings Per Ton Recycled

Energy Generated

Per Ton Incinerated

Materials Grade % Energy Reduction*

MM BTUs

Equivalent in bbl of Oil

Tons CO2 Reduced

MM BTUs

bbl of Oil EQV

Aluminum 95 196 37.2 13.8 -1.06 -0.2

Paper** NewsprintWritingLinerboardBoxboard

45352626

20.920.812.312.8

3.973.952.342.43

-0.03-0.030.070.04

11.811.811.811.8

2.242.242.242.24

Glass RecycleReuse

31328

4.7450.18

0.99.54

0.393.46

-0.34na

-0.06na

Steel 61 14.3 2.71 1.52 -0.34 -0.06

Plastic PETPEPP

577574

57.956.753.6

1110.810.2

0.9850.3461.32

35.935.938.5

6.86.87.3

• Relative to energy required for virgin production** Energy calculations for paper recycling count unused wood as fuel

Sources: Argonne National Labs DOE Franklin Associates Phillips 66Wellman

Positives—Many polymers can be reused easily at post industrial and production sites with proper protocolValue still exists for many plastics to justify cap ex for equipment at volume levelsSome materials like styrenics-HIPS, ABS, Polycarbonate…….no new virgin capacity in the near future domesticallyTechnology has improved for ID work and sortingStimulus bill does offer some monies and support for recyclingWaste to energy is a fast growing segment which can provide for some outlets of scrap too expensive to recycle and too expensive to landfillHigh BTU content for WTECulture shift is making designers look at recovered materials more closelyLEED points to help drive end products….need more clarification and definition of this area in LEED. As well as NSF, ASTM and ISO Plastics are a great material that can offer low cost alternative Recycled and scrap materials have been the backbone of entrepreneurial efforts to make new products

Recent and future concernsLegislative mandates…..the misguided onesProducer responsibility could shift right back

to polymer producers and show up in material costs

Consumer/Environmental driven fears and reactions

Rapid creation of new capacity with little oversight for safety and control

A retreat by designers and poor educationFunding

Thank you for your time!

For all of your sustainability needs, contact:

http://www.ronsherga.com