Ron Sherga, Owner Sherresults LLC STAR Summit 2009 State of Texas Alliance for Recycling

1. Sher-Results,LLC Ron Sherga, Owner Sherresults LLC STAR Summit 2009 State of Texas Alliance for Recycling http://www.ronsherga.com

2. 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”

3. Why do we want to recycle plastics?

4. Biggest creators of plastic scrap • Packaging-some landfill studies report that over 70% of waste is from packaging • E waste- appliances, TV’s, anything with a plug or battery • Medical related and personal hygeine • Auto and other transport • Textile-this includes clothing , flooring, furnishings • Ag related • C & D debris- piping, conduit, roofing materials

5. Challenges and issues related to recycling and recovery of plastic/polymer scrap Transportation costs if LTL or light materials Product ID……..especially for black materials where an Infra Red scanner will not work Cost to acquire separation technology for mixed materials like auto shredder fluff or packaging materials Plastics have been demonized by media and poor science Access to capital today Foreign contamination-paper ,metal , organics, moisture ,etc Variety of plastics – might be the famous 7 symbols…but thousands of grades Lack of market transparency….no yellow sheet like we find in paper Fragmented streams of control…waste firms, paper firms. Metal companies, E waste ,etc Competing export market Not 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 opinion Lack of environmental credits for polymers which could drive more recovery via Cap & Trade

6. Energy Savings/CO2 Impact Sources: Argonne National Labs DOE Franklin Associates Phillips 66 Wellman • Relative to energy required for virgin production** Energy calculations for paper recycling count unused wood as fuel

7. Positives— Many polymers can be reused easily at post industrial and production sites with proper protocol Value still exists for many plastics to justify cap ex for equipment at volume levels Some materials like styrenics-HIPS, ABS, Polycarbonate…….no new virgin capacity in the near future domestically Technology has improved for ID work and sorting Stimulus bill does offer some monies and support for recycling Waste to energy is a fast growing segment which can provide for some outlets of scrap too expensive to recycle and too expensive to landfill High BTU content for WTE Culture shift is making designers look at recovered materials more closely LEED 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

8. Recent and future concerns • Legislative mandates…..the misguided ones • Producer 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 education • Funding

9. Thank you for your time! For all of your sustainability needs, contact: http://www.ronsherga.com