Role of a virgin plastic producer in plastics recycling

TOWARDS CIRCULAR PLASTIC PACKAGING :
ROLE OF VIRGIN RESIN PRODUCERS
« Things are only impossible until somebody does them … »
Greener Packaging Seminar
Brussels, November 17th, 2016
[email protected]
TOTAL’s 3 main polymers : 6 million tons annual sales (ww)
3%
5%
13%
57%
76 Mt
24%
11%
4%
4%
Polyethylene
PE
Packaging
2
9%
32%
52 Mt
11 Mt
41%
29%
Polypropylene
PP
Construction / Building
40%
Automotive
28%
Polystyrene
PS
Electrical / Electronics
Others
CIRCULAR ECONOMY : ‘THE FORCE’
● Circularity = very strong concept : simple and visual :
showing the direction where to go (over time)
Umbrella citerium
No trade-offs, no confusion,
easy to understand
● Creates a new hierarchy of priorities !
• « OK to optimize costs and profitability, within boundaries of
circularity »
● Comparable to ‘Safety First’ criterium that revolutionized safety
management in the industry since ~1980
• « OK to optimize cost and production, within boundaries of safety »
3
WHAT DRIVES THE CIRCULAR ECONOMY REALLY ?
Waste actors
Public
EU
Authorities
National
Regional
Local
Private
Industry
Associations /
EPR schemes
KPI’s
Criteria
Rules
Material producers
Convertors
Brand owners
Distribution
Achievements
Constraints
Consultants
Citizens
Political
groups
Voters
Waste
producers
Investors
Customers
Central Driver =
capital of public sympathy
for RECYCLING
4
NEW ROLES AND RESPONSIBILITIES
FOR ECONOMIC ACTORS ….
Waste service providers : become material suppliers
Packaging sector : privileged position !
- main source of secondary raw material ! >60% of all plastic waste
- short shelf life : predictable availability + regulatory compliance
- packaging design = key criterium for ‘circular potential’
WHICH ROLE FOR A VIRGIN PLASTICS MANUFACTURER …?
5
VIRGIN PLASTICS INDUSTRY PERSPECTIVE …
V
6
PLASTICS HISTORICAL SUCCESS STORY :
RELENTLESS INNOVATION FOCUSED ON (LINEAR) GROWTH
World demand, index
!?
350 MT
(Demand saturation expected
around 1000 MT/y)
50 MT
Can we, together, focus innovation on circularity ?
7
TODAYS LINEAR REALITY OF PLASTIC PACKAGING
(similar to paper 30 years ago… !)
Low quality, low volume, low yield recycling
Each actor innovates for own
economics
Virgin resin
production
Innovative
design and
conversion
Throughputoriented
sorting, few
categories
(Limited) collection,
focus on heavy
materials (KPI’s)
Source : Ellen MacArthur Foundation, McKinsey
8
CIRCULARITY AND VIRGIN PRODUCERS :
PLASTICS VERSUS OTHER COMMODITIES
Product
World
market
Estim. Recycled
content
Role of
‘virgin’ industry
Steel
1600 MT
60%
Paper / Cardboard
400 MT
70%
Aluminium
90 MT
45%
Glass
55 MT
50%
Key contributor to the circular
chain :
Technology based enhancer /
stabilizer of recyclate for
downstream use as recycled
content, just like virgin material
Copper
25 MT
35%
Plastics (°)
310 MT
~9%
No significant involvement
PET = exception
77 MT
25%
Active cooperation to strengthen
recycling
(°)
(°) without PET : < 6%
9
WHY DO WE CARE …?
NEW (VIRGIN) MATERIALS SEGMENTATION !
Linear (« fossil ») materials :
Circular materials :
● Single use lifetime ; end-of-life = in land
● Multiple use lifetime ; waste = new feedstock
● Plenty of good recyclate available, for use as
or sea, or partly recovered as energy
● Little or no good recyclate available
● Impossible for converters and brand
owners to combine virgin material with
recycled content
recycled content
● Structural cooperation between ‘circular
stakeholders’, preserving the circularity.
● Virgin materials thrive as ‘performance
enhancer’ for ‘recycled content’
● Gradually de-selected, and
substituted by circular materials,
wherever possible.
● Growth, development, new technologies and
competencies, gradually substituting linear
materials
10
HOW COULD TOTAL CREATE VALUE IN PLASTICS
RECYCLING ?
Virgin + Recyclate
Circular Compounds
Convertor
Brand
owner
Consumer
Circularity
Support
Customer intimacy:
Fulfilling unsatisfied
needs
Collection /
sorting
Provide materials
science for Eco-design
Process
technology
Recyclers
Collaborative
projects
Technology,
product
development
Virgin
molecular
DESIGN
Plastic
recyclate
rPE
rPP
rPS
Extend accessible markets
of recyclate
11
On-purpose CIRCULAR design of virgin resin :
as performance booster for recyclate !
Stress Crack Resistance (ESCR, h)
Circular Compound,
50…% post-consumer
recycled content
Typical virgin 5502
>>600
60
E.g. HDPE bottles for
industrial and
household liquids
50
Typical virgin 5802
Typical recyclate
Flex Modulus
+ 100% fragrance free :
Total’s deep decontamination process
Melt Flow (HLMI)
12
ONGOING CIRCULAR COMPOUNDS DEVELOPMENTS
● rHDPE
●
●
- Food contact packaging
- Injection & Blown Film
- Technical applications
rPP
- Injection
- Food contact packaging
- Automotive
rPS
- Technical parts
- Food contact packaging, thermoforming
13
EXTENDING RECYCLATE MARKETS WITH CIRCULAR COMPOUNDS :
PLASTIC ROAD PARTNERSHIP
Plastic
Road
14
NEW PLASTICS ECONOMY : CIRCULAR
(similar to paper today… !)
High technology, high yield recycling
Deep
decontamination /
food contact
Sorting of all
polymers
Common care by circular
stakeholders to preserve
circularity
Virgin booster
production
Circular focused
Collection of all plastics
Recyclate
Boosting eco-design conversion (providing scale economics)
& innovation
15
REMAINING BARRIERS FOR RECYCLATE TO ACCESS VIRGIN MARKETS :
FOOD CONTACT AND MASS COLORATION
Virgin markets segmentation
Naturel
Food contact
Naturel
Non-Food
Recyclate
Color / Black
Food contact
Colored / black
Non-food
Moon-shot developments required !
99%
- Circular Ecodesign
- Technology
- Regulation
16
NATURAL PACKAGING SOLUTION :
UNIQUE OPPORTUNITY TO INJECT VALUE WITHOUT SUBSIDIES
The practice to colour in the mass destroys a lot of ‘circular economics’ !
- Natural recyclate has 200 €/t more value than coloured recyclate : access to virgin markets
- Colour and marketing messages : concentrate on shrink film, removed at recycling
17
CIRCULAR COMPOUNDS :
ADVANTAGES FOR ALL STAKEHOLDERS
Converters
•Ready-to-use
•Guaranteed resin properties
•Compatible with current and future transformation
technologies
•Resin consistency by design
•PCR certification delivered
•Service level ‘as usual’ from virgin supplier
Brand owners
•Circular solution for high end
•High % PCR
•Low footprint, by composition and by process
•Guaranteed quality
•No design constraints
•Equivalency to virgin resins
Recyclers & society
•No disruption of the recycling industry
•New markets for recyclate
•Breakthrough for plastics recycling
Virgin plastic producer’s
new role :
Technology based ‘enhancer /
stabiliser’ of recyclate feedstock,
enabler of the circular economy for
plastics.
18
Titre de la Présentation – Lieu et Pays – Date Jour Mois Année
19