#WMF2021 | Green Technology & Materials: the convergence

Last week, I took part in the session "The Future of Packaging: Recycling & Smarter Materials" at the World Materials Forum 2021. If I don’t consider myself ?a "plastics veteran" - I started the journey in plastic recycling and?high-quality?materials?in 2015 - I 've shared my strong convictions on plastics recycling and its challenges from an operational point of view.

I would like to start sharing with you what I call the?"PRP".??No, it’s?not the name of a new recycled?polymer created by SUEZ, but the abbreviation for "Plastic Recycling Paradox". Do you?know?what the "Plastic?Reycling?Paradox"?is? Let me explain.

Compared with a?tonne?of virgin plastic, the?production of a?tonne?of recycled polymer?saves 5 barrels of oil, the equivalent of 1.6?tonnes?of CO2, and uses 10 times less energy. The Environmental benefits are therefore obvious. All other things being equal,?this environmental equation will lead to a rapid change in favor of secondary raw materials.?Having said that, even in sophisticated areas like Europe, the shift toward?recyclates?is not that obvious.

Out of?29MT?of plastic?waste produced every year in Europe,?only?5MT?are ending up in recyclates,?of which?4MT?re-enter into new local products and 1 MT for exportation outside Europe, mainly in Asia.

In addition,?out of the 4MT just mentioned, almost?50%?are used?in?Building & Construction?activities, meaning that?we are far from upcycling?or?closed loop and smart processes.

So why is the change toward circular economy is so lengthy? What are the main challenges the waste industry has to tackle?in order to be in a position to contribute positively to reducing gap?

Before talking about challenges, note?that regarding plastic recycling in SUEZ, we constantly focus on 3 main objectives:

1. Quality:?we?only?produce high-quality?polymers.?The objective is “bottle-to-bottle” production.
2. Traceability:?our processes?always?guarantee?to customers?the origins of?plastic waste?collected?before recycling.
3. Competitive prices:?we constantly work to?improve?sorting and recycling to?lower?prices of?recyclates?vs virgin.

So for SUEZ, recyclability is a technical as well as a commercial challenge.

Having said that, in my opinion, the?3?main?challenges?for waste industry?are the following:?

1. Innovation in new technologies?for sorting and recycling to be able to produce?high-quality?polymers.??I repeat, the objective of companies like SUEZ is not to produce?low grade plastic for the production of public benches or construction pipes from post-consumer PET or PE.
2. Creation of?a long term & profitable downstream market,?in order to convince big brands,?retailers and car manufacturers to definitively choose?recyclates?(vs virgin).
3. If we have the technology to transform plastic waste into valuable products,?and if we know that there are long term buyers for those products,?how can we source more plastic waste from industrial companies, local authorities or tomorrow, directly from consumers??

I will now try to convince you that?a?company like SUEZ is starting?to have relevant answers to those 3 questions.?Let me explain?in?detail.

Challenge #1 – Innovation & Technology

A large diversity of polymers?resulting from?various industry needs does exist:?various?colors and types?of resins?(PET, PP,?PE, PS?and PVC mainly). Those plastics are often mixed together,?some are aggregated into?mutli-layers, others?include?chemical?components?like?black carbon?to?improve opacity or silicon to increase rigidity.?This diversity is very challenging for the waste industry. We?need?to?adapt?our recycling capabilities?for each resin.?And by the way, the downstream customer has also?different quality?requirements for?recyclates.?SUEZ has therefore taken 3 decisions:?

1. Concentrate investment capacity on some polymers only?(PET, PE, PP, PVC),
2. Partner with top-class polymer producers?like LyondellBasell to better?assess?and better comply with customer requirements,
3. To do some significant?R&D to go beyond thermo-mechanical?treatment:?at the moment,?we are exploring molecular recycling?(PET depolymerization and the production of pyrolis oil for instance).

The support for long-term innovation,?either public or private,?like that done by the Alliance?to?End?Plastic?Waste,?is undoubtedly a plus in order to accelerate the market transformation.

Challenge?#2?–?Create a long term?&?profitable downstream market

Our economy can only be truly circular if?markets are available for high-quality recycled raw?materials.?I mean long term markets and not opportunistic ones only depending on oil price movements. So,?we need to?create stronger demand. I often use the term "a?shock on demand". Recyclables shall now be definitely part of the global supply chain. On?the top of customer's spontaneous willingness, I strongly believe that we need also?a long term and ambitious European policy framework?which provides legal certainty?and forces some slow-moving sectors to think about the future differently.

Challenge #3 – How do we access?plastic waste?

It?is vital that recyclable waste from households, industrial and commercial sources are collected separately.?As such, well-sorted plastic waste is an absolute prerequisite?for recycling. As matter of fact, I am convinced that we?underestimate citizens?role:?they are key?in making sure that the overall value chain will be sustainable.?We?shall?encourage citizens to better sort at the source through?different?incentive programs:?take-back systems, deposit return scheme,?reduced collection costs,?etc. The?“traditional” door-to-door waste collection?is?not optimal?on the pure taxation point of view,?even?in European countries.?As an example, thanks to?RECO, a system?developed?by SUEZ?with the help of?CITEO, we don’t charge?citizens but we are able to remunerate them if they bring back to us valuable materials. I have no doubt that similar systems could be implemented even in developing countries in order to complement rag picker informal activities.?Waste recycling companies are often in the middle of many stakeholders with different interests.

The solution?certainly?lies?in a?global?alignment?between?local authorities, citizens brand owners,?states?and regional regulators?/?policy makers, and obviously EPR schemes like CITEO when they exist.?

As a conclusion, let me share with you?six?solutions?that I believe are helpful in order to close the circularity gap for plastic.??

1. Ensure better cooperation between plastic producers and recyclers to boost circular design.?We need to avoid putting?on the market plastics?that are not yet recyclable or still very expensive to recycle.?
2. Co-operation between cities, eco-organisations, the packaging industry and recycling industrials to create a?harmonized?ecolabel?to reassure that customers can easily identify,?not only recyclable products,?but also those which already contain?recyclates.?
3. Encourage citizens?to better sort at the source through?specific?incentive programs. I am convinced that SUEZ's?reverse?vending machine?could be exported?outside France. ?
4. Promote the?introduction of minimum content for recycled plastic?in order to create a shock on demand.?European Parliament did it recently for PET in beverage bottles. We need to go beyond this.
5. Ease the?comparison between?virgin and recycled plastic?though tax schemes?like reduced VAT or a variable eco-contribution. Personally, I am also in favor of a carbon tax at the borders of Europe.
6. Encourage?states and?cities to prioritise recycled packaging with a more ambitious?Green Public Procurement policy.

As you have understood, the circular economy needs collaboration. This is true for every secondary raw material, but even more true for plastics given their complexity. And this is the reason why SUEZ has decided to join?the Alliance to End Plastic Waste.?

But unfortunately, time is running out. Time?is fast becoming a luxury we no longer have. Let’s go into action!?We owe that to our children. I certainly owe it to mine!

Photo copyright: Félix Cornu.