Commodity Market Update: Glass Containers

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Commodity Market Update Glass Containers
Joe Cattaneo, President Glass Packaging
Institute NRCs 27th Annual Congress
Exposition Pittsburgh, PA September 23, 2008


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• The Glass Packaging Institute (GPI) is the trade
  association representing the North American glass
  container industry.
• 9 member manufacturers
• 39 associate member supplier companies
• www.gpi.org

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50 U.S. Glass Container Manufacturing Plants in
23 States

• State Per State
• California, Pennsylvania 5
• Indiana 4
• Georgia, Illinois, New Jersey, 3
• North Carolina, Oklahoma, Texas
• Colorado, Missouri, New York, Virginia 2
• Arkansas, Florida, Louisiana, 1
• Massachusetts , Michigan, Minnesota,
• Ohio, Oregon, Washington, Wisconsin

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Glass Container Shipments Production Through
August 2008
Source U.S. Dept. of Commerce, Bureau of the
Census Data reported in thousands gross. One
thousand gross 144,000
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2007 U.S. Glass Container Shipments By Category
Cosmetics, Fragrances, Pharmaceuticals (Other)
Non-Alcoholic Beverages
Nearly 80 of glass container shipments are
for beverages
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U.S. Glass Container Industry ShipmentsBeer,
Wine, and Spirits

• Beer 2002 2007E

Spirits 2002 2007E
Wine 2002 2007E
(Source U.S. Department of Commerce)
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2006 U.S. Glass Container Recycling

• 30.7 of beer and soft drink bottles
• 15 of wine and liquor bottles
• And 25.3 of all glass containers
• (Source U.S. EPA)

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What is Glass?

• Sand 70-75
• Soda Ash 10-15
• Limestone 10-15
• Additives 5

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What is Glass?

• Cullet Recycled glass used at levels as high
  as 80 when available

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Environmental Benefits of Using Recycled Glass

• Over a ton of natural resources saved for every
  ton of glass recycled
• Energy costs drop about 2-3 for every 10 cullet
  used in the manufacturing process
• Six tons of recycled container glass used equals
  one ton of carbon dioxide reduced
• Glass has an unlimited life can be recycled
  again and again

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Current Cullet Usage Criteria

• Container Glass Only no ceramic coffee cups,
  drinking glasses, Pyrex, ovenware, mirrors, etc.
• Contaminant Free No ferrous materials,
  ceramics, etc.
• Color Sorted Clear, Amber, and Green
• Meets plant specifications as to particle size
  (usually 3/8 inch)

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65 Cullet ProcessorLocations in 25 States

• California 10
• Pennsylvania 8
• Ohio 4
• New Jersey 4
• New York 4
• Florida 3
• Georgia 3
• Indiana 3

• Texas 3
• Connecticut 3
• IL, KY, MI, NC 2
• IA, ME, MA, MO
• MS, NE, OK,
• OR, TN, VA,
• WA, WI 1

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Optical Sorting Ceramic Detection Add-On
Equipment at Cullet Processor Locations

• Franklin, MA
• Bridgeport, NJ
• Raleigh, NC
• Ontario, NY
• Mt. Pleasant, PA
• Bethlehem, PA
• Boulder, CO
• St. Paul, MN

• Hayward, CA
• Madera, CA
• Vernon, CA
• San Leandro, CA
• Los Angeles, CA
• South Windsor, CT
• Sarasota, FL
• Chicago, IL

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Primary Markets for Quality Cullet

• Glass bottles
• and jars
• Fiberglass

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Secondary Markets for Cullet

• Countertops and floors

• Landscaping

• Tile

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Secondary Markets for Cullet

• Bead

• Fluxes/Additives

• Frictionators

• Abrasives
• Brick manufacturing
• Roadbed Aggregate - Diversion
• Landfill Cover - Diversion

• Filtration

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Glass Recycling Critical Issues

• Availability
• Quality
• Cost

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Glass Recycling Critical Issues

• Energy Reduction
• Demand from all glass sectors to reduce energy
  costs
• Need to meet enhanced regulatory standards for
  air emissions
• Competition for cullet
• Container glass
• Fiberglass
• Flat glass

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Sources for Recycled Glass Containers

• Curbside (often three mix)
• Drop-off
• Mandatory beverage container deposits (currently
  11 states)
• Commercial (on-premise)
• Unused inventory
• In-house cullet

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Curbside Collection Challenges

• Collection and Quality
• Compaction/breakage
• Single stream collection
• 87 of the U.S. population access to curbside or
  drop-off
• Single-stream recycling grown from 29 of the
  population in 2005 to 50 in 2007
• 5 of programs to transition to single-stream in
  near future
• Source AFPA 2007 Community Survey

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Curbside Collection Challenges

• Processing and Quality
• Glass handling
• Sorting equipment
• Negative sort
• Markets
• Uneven geographic dispersion of end-markets
• Additional costs to process
• Diversion alternatives

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Colorado Glass Recycling Drop-Off Pilot

• Partners
• City of Fort Collins, Larimer County, City of
  Loveland
• Rocky Mountain Bottling Company
• Background Research
• Best Management Practices for Glass Recycling in
  Northern CO
• Glass capture rates (bottle-to-bottle) for
  single-stream recycling may only reach 30
  almost 100 for drop-off
• Objectives
• Glass recycling at curb and option to drop off at
  glass only bins at three locations
• Improve glass recycling quantity and quality
• Reduce glass going to landfill/waste

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States with Mandatory Beverage Container Deposits
Oregon Vermont Michigan Maine Iowa Connecticut Mas
sachusetts Delaware New York California Hawaii
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Deposit Legislation Impact on Glass Recycling
Markets

• Survey of 300 U.S. recycling officials found
  64.8 want federal action on a national beverage
  container deposit law
• Quality ensured (contaminant free)
• Higher percentage of containers returned for
  closed-loop recycling
• But does not include all glass containers
•  
• Source 2008 Resource Recycling Survey

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Commercial Collection

• Driving Factors
• Consistent supply of high quality cullet
• Nearby glass markets
• State legislation
• Benefits
• Lower disposal costs
• Environmental payoffs
• Customer recognition
• Practical problems
• Economic incentives
• On-site storage employee education
• Glass collection infrastructure
• Transportation

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Bar/Restaurant Recycling in North Carolina

• ABC Legislation
• Requires all ABC permit holders to recycle
  containers effective January 1, 2008
• Initiatives
• Regional workshop
• NC DPPEA grants
• Online recycling resources at www.partnership4recy
  cling.org

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Greensboro, NC

• Partners
• City of Greensboro
• NC DPPEA (grant for collection containers)
• FCR Greensboro
• Strategic Materials
• Collection
• About 175 bars/restaurants
• 96-gallon automated carts
• Over 500 tons of mixed glass in first 6 months of
  2008 about 20 tons/week

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Fayetteville, NC

• Collection results after ABC law
• Up tick in glass recovery
• Increase in overall recycling

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Fort Collins, CO

• Brown Bottle
• Recycling Program
• Partners
• City of Fort Collins
• New Belgium Brewing Company
• Rocky Mountain Bottle/Coors
• Collection
• About 15 businesses
• Collected in 65 gallon polycarts
• Nearly 30 tons/year
• Amber content is 65

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Colorado Springs, CO

• Partners
• Rocky Mountain Bottle
• Independent hauler
• Collection
• About 120 tons/month
• Over 60 bars/restaurants and Ft. Carson
• Recycled bottles go back into shipping boxes
• Mostly brown glass small amount of green/clear
  separated out

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GPI California Grant Initiatives San Luis
Obispo, CA

• Partners
• San Luis Obispo County IWMA
• Glass Packaging Institute
• CA Dept. of Conservation
• Initiative
• GPI DOC grant provided glass collection truck
• Collection
• 2006 About 100 bars/restaurants collecting 1.7
  million CRV containers
• 2008 167 bars/restaurants, breweries, wineries
  collecting 100/tons month

Recycling Container at Windward Winery
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GPI California Grant Initiatives Monterey, CA

• Partners
• City of Monterey, CA
• Glass Packaging Institute
• CA Dept. of Conservation
• Initiative
• GPI DOC grant provided funds for collection
  trailers, roll-off container, and recycling carts

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GPI California Grant Initiatives Monterey, CA

• Special Event Collection
• 75 annual events
• July 4th collected over 1,500 glass containers in
  6 hours
• August Wine Makers Festival collected over 5,000
  wine bottles and 1,400 CRV containers
• Once-a-month drop-off collection events at Army
  Post
• Increased glass collection 5-6 tons/month
  reaching out to bars/restaurants and hotels

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GPI Resources Commercial Glass Recycling Kit

• Target audience
• Bars, restaurants, and hotels
• Other audiences
• Local recycling officials
• Recycling collection companies

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GPI Resources Commercial Glass Recycling Kit

• Kit Contents
• Steps to set up a commercial glass recycling
  program
• Dos and Donts poster for employees
• Order/Download
• Recycling bin labels
• We Recycle Glass Bottles downloadable art
• Worksheet to tally amount of glass generated
• Model programs

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Customized Ads
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GPI Resources Inside Glass Packaging

• Whats inside
• News and trends
• Legislation
• Glass bottle recycling programs
• Glass, sustainability, and the environment
• Sign-up online at gpi.org

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Choose Glass Recycle Glass
gpi.org