2. The Real Problem
3 Year
Market Average
% Weight $ Value
Glass 18.0% ($50)
Cardboard 27.0% $125
Paper 32.0% $85
Aluminum 2.0% $1,400
PET 4.0% $375
HDPE 4.0% $525
Plastic Film/Flexible (1) 1.5% ($50)
Rigid Plastics (1) 1.5% $50
Other 10.0% ($50)
Revenue/Ton 100.0% $111
(-) Operating Cost/Ton ($75)
Profit/Ton $36
The Economics of Material Recovery Facilities
3. CLOSED LOOP FUND | PAGE 3
TOTAL: $11,402,020,357
Source: See Appendix 1 for methodology and plastic material definitions.
STEEL:
$285,000,000
PET:
$2,917,345,309
PVC:
$136,000,000
PP:
$1,273,600,000
GLASS:
$97,325,060
ALUMINUM:
$1,446,228,571
HDPE:
$2,854,896,000
LDPE/LLDPE:
$726,000,000
PS:
$371,000,000
PAPER:
$1,294,625,417
End Markets Exist
You may have heard about this story in the WSJ. In the news – this is the problem
This is the real problem
How can you as a company get the internal YES on scaled initiatives like this?
Example:
Why did P&G, Pepsico
Why?
Walmart effect
Sometimes it needs to be big enough
Focus
Clear financial return
Purpose: Support Keurig in meeting its goal of 100% recyclability for K-Cups in 2020
Scope: Conduct testing in 3 Materials Recovery Facilities (MRFs) to learn how various cups/formats would flow in current MRF sorting equipment
Desired Outcomes: Inform design, material selection, marketing, labeling, and other decisions that influence recyclability
Identify points of inquiry and possible intervention in the recycling industry that could enable K-Cup recycling