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Increasing Aluminum Can Recycling Rates in Tennessee

Increasing Aluminum Can Recycling Rates in Tennessee. Recycling in Tennessee: SERDC Workshops; August 13-15, 2012. Alcoa at a Glance. Leading aluminum products company Primary aluminum and alumina Flat-rolled aluminum and hard-alloy extrusions Active in all major segments of the industry:

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Increasing Aluminum Can Recycling Rates in Tennessee

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  1. Increasing Aluminum Can Recycling Rates in Tennessee Recycling in Tennessee: SERDC Workshops; August 13-15, 2012

  2. Alcoa at a Glance • Leading aluminum products company • Primary aluminum and alumina • Flat-rolled aluminum and hard-alloy extrusions • Active in all major segments of the industry: • Technology • Mining • Smelting • Fabricating • Refining • Recycling Products serving the aerospace, automotive, commercial transportation, packaging, building and construction, and industrial markets.

  3. Tennessee is home to a diverse set of Alcoa businesses • Tennessee Operations, Alcoa: • Largest recycling and can sheet production facility in the world • Knoxville Office: • HQ to our global primary products, energy and metal trading businesses • Howmet Castings, Morristown: • Investment casting for aerospace markets • Evermore Recycling, Nashville: • Soon to be wholly owned by Alcoa on August 31. • 1,650 active employees • 4 operating locations • Packaging, Aerospace, Primary Products ,and Recycling Howmet, Morristown APP HQ, Alcoa Energy, Knoxville Tennessee Operations Evermore Recycling, Nashville

  4. Background: Global Recycling Rates Source: IAI

  5. What is the problem? Total Global Market – ~196 billion • Half the world’s cans are consumed in the U.S., yet 42% of them are still going into the waste system • In the U.S., we have the largest market for these cans, but one of the lowest recycling rates among developed countries. • The result? About 1.3 billion lbs or 575 KMT of metal with a strong market is being buried in U.S. landfills • Equivalent of 2 smelters are buried in U.S. landfills • Equivalent of >27,000 Airbus A320s… 41 billion trashed U.S.: 97 billion ROW: 99 billion ~69% recycled Sources: Aluminum Association, CMI, IAI, Alcoa Estimates

  6. What is the problem? Total Global Market – ~196 billion • Half the world’s cans are consumed in the U.S., yet 42% of them are still going into the waste system • In the U.S., we have the largest market for these cans, but one of the lowest recycling rates among developed countries. • The result? About 1.3 billion lbs or 575 KMT of metal with a strong market is being buried in U.S. landfills • Equivalent of 2 smelters are buried in U.S. landfills • Equivalent of >27,000 Airbus A320s… 41 billion trashed U.S.: 97 billion About 47 million pounds of cans are trashed in Tennessee each year – Equal to a fleet of 1000 jet airplanes, and worth between $25-30mm ROW: 99 billion ~69% recycled Sources: Aluminum Association, CMI, IAI, Alcoa Estimates

  7. What Can We Accomplish? • Alcoa’s Goal: • Raise US recycling rate to 75% by 2015 Source: IAI

  8. Why is This So Critical? • Aluminum can be recycled economically an infinite number of times, which makes it a manufactured natural resource. We save 95% of energy needed to make aluminum from raw ore when we use recycled aluminum. Aluminum cans are not trash – they are by far the highest value component in the waste stream. • Increasing the U.S. aluminum can recycling rate to 75 percent would save enough energy to replace a 354 mega-watt coal-fired power plant. Put in perspective, that’s enough energy savings to power all the homes in Memphis each year. • Recycling means jobs in Tennessee. Alcoa’s Tennessee Operations is the largest recycling facility in the world, and we depend on recycled cans. Yet, while Tennessee is among the top 15 non-deposit states in terms of can consumption, the recycling rate in Tennessee is among the lowest in the nation. Source: IAI

  9. The Geographically Close Aluminum Industry is Short of Cans Source: SERDC

  10. Under Utilized Capacity in Tennessee • 50% capacity expansion completed at Tennessee Operations in 2009 • 140,000 pounds of recycled cans per hour • Lack of recycled cans forcing the use of more expensive materials such as prime ingot • The capacity is there…we just need more recycled cans! Source: IAI

  11. What can be done to create step change improvement? • Industry Collaboration • Action to Accelerate Recycling – a voluntary stewardship initiative kicked off by Alcoa • Outreach and Education • “Social Shift” college campus campaign – Keep America Beautiful • Curbside Value Partnership (http://www.cvpconnect.org) – aluminum industry program to drive local community recycling • SERDC • Alcoa Foundation Grants to communities, recycling groups • Policy – Policy – Policy • Must drive change to provide necessary incentive

  12. What can be done? • Policy support is imperative • Disposal bans • Mandated or incentives for recycling • Pay as you throw

  13. www.AlcoaRecycling.com

  14. A Great Opportunity… “I was seldom able to see an opportunity until it had ceased to be one.” – Mark Twain

  15. Thank you! Chris.moore@alcoa.com www.AlcoaRecycling.com

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