Eco-Industrial Park

1. Eco-Industrial Park Long-term strategy to utilize the Midwest’s post-consumer carpet supply

2. Necessary Components of a Carpet Eco-Industrial Park • Collection infrastructure • Process to densify resin • Manufacturing facilities that use either post-consumer carpet/fiber or densified resin as feedstock

3. Collection Infrastructure

4. Collection Infrastructure • Minnesota disposes 77,000 tons of carpet annually, not including C & D carpet waste. • Would collect, identify, sort, and bale (and possibly grind) post-consumer carpet as specified by the manufacturers. • Would collect from state vendors, general contractors, C & D contractors, commercial management firms, flooring contractors, etc. • Possibly could densify the resin on site. • Would sell the baled carpet/fiber or resin to manufacturers (on- and off-site) for processing.

5. Post Consumer Carpet Carpet is Identified and Sorted by fiber type/backing Wool,PET Other Urethane Backed Floor Tile PVC Backed Floor Tile Polyolefin Backed Carpet Nylon 6,6 Nylon 6 PP WTE or Flood Bags Refurbished Floor Tile Milliken New Floor Tile (Interface C & A, Shaw) Deconstruction of Carpet Depolymerzation BASF Waste Carpet Needle Punch Carpet Pad Bales of Face Fiber Separated from Backing with Low Calcium Carbonate Content Bales of Whole Ground Carpet with Backing High Calcium Carbonate Content Densified Nylon Carpet Backing Whole Carpet Extruded into Construction Sheeting by Nylon Board Manufacturing Other Products Injection Grade Resin Wood Plastic Composite Landfill

6. Items for Consideration • State vendors • Willing to explore collection options and offer a certificate guaranteeing recycling. • Willing to alter their de-installation process to fit specifications required by the end-user or collection center. • Commercial management firms, C & D contractors and other carpet installers have expressed interest in carpet recycling. • DuPont, C & A, Interface, and Milliken have expressed interest in working w/ OEA on a collection issues.

7. Issues/Barriers • Landfilling of carpet is currently cheaper in the Metro area versus recycling. • There is no ban on landfilling carpet. • Carpet manufacturers are paying NBM to take post-industrial carpet (i.e. Shaw). • Other manufacturers (i.e. Winnebago) are also paying NBM to take material or are giving it to them for free. • There is plenty of post-consumer carpet and not many outlets.

8. Continuation of Issues/Barriers • NBM is exploiting their position in the marketplace by refusing to pay for material (since they are getting paid to take material or are getting it for free). • Certain manufacturers need justification to collect and recycle (i.e. DuPont) post-consumer carpet.

9. Positive Aspects of Collecting Post-Consumer Carpet • Central Collection allows economy of scale. • NBM has to use either post-consumer or post-industrial feedstock-virgin resin is too expensive. • Collection is a non-issue if there are markets for the material.

10. Next Steps • Determine whether NBM is planning on starting up their own collection infrastructure. • Conduct discussions with manufacturers to gauge their interest in being part of a central collection system and what their commitment is to an eco-industrial park. • Conduct discussions with manufacturers on how a collection center could be designed to fit their needs. • Come to agreement with manufacturers that they will take material to the center, rather than to NBM, once center is started.

11. Continuation of Next Steps • Conduct discussions with manufacturers about their goals in producing recycled content resin, recycled content carpet, etc. • Require all public agencies to recycle all of their post-consumer carpet by inserting a standard specification in bid packages to general contractors.

12. Items to be Determined • Will an identification tool be widely available? • Which carpet manufacturers will be involved? • Which facilities will the post-consumer carpet be sent to for processing? • What standards for removal will be required to ensure clean material is brought to the collection center? • Costs for collection, handling, and transportation of post-consumer carpet? • Grant opportunities (OEA and CARE)?

13. Timeline (Collection) Gauge NBM’s place in market- Determine whether a central collection system is feasible Engage fiber/carpet manufacturers & partners to take next steps Get standard specification language in state agency bids Provide workplan outlining next steps to build a collection center/system Complete initial collection center Continue facilitating partnerships and expand system December 2002 February 2003 March 2003 December 2003 Ongoing

14. Resin

15. Recycled Resin • Could be produced in a manufacturing facility • Manufacturer densifies resin in-house from post-consumer carpet fiber-can then be extruded into a composite profile or used as an injection mold grade resin. • Could be produced in a vertically integrated collection system • The collection center would collect, identify, sort, and densify post-consumer carpet fiber-the recycled resin would then be sold to manufacturers.

16. Post Consumer Carpet Carpet is Identified and Sorted by fiber type/backing Wool,PET Other Urethane Backed Floor Tile PVC Backed Floor Tile Polyolefin Backed Carpet Nylon 6,6 Nylon 6 PP WTE or Flood Bags Refurbished Floor Tile Milliken New Floor Tile (Interface C & A, Shaw) Deconstruction of Carpet Depolymerzation BASF Waste Carpet Needle Punch Carpet Pad Bales of Face Fiber Separated from Backing with Low Calcium Carbonate Content Bales of Whole Ground Carpet with Backing High Calcium Carbonate Content Densified Nylon Carpet Backing Whole Carpet Extruded into Construction Sheeting by Nylon Board Manufacturing Other Products Injection Grade Resin Wood Plastic Composite Landfill

17. Recycled Resin is a marketable product if: • ASTM tested • UL tested (electrical) • Feedstock is available • Cost of recycled resin is comparable or cheaper than virgin resin • Board products or other high value product(s) made with recycled resin are successful

18. Recycled nylon will not be CHEAPER unless: • Oil prices decrease • Engineers take a chance • A more efficient system to recycle resin is designed and implemented (i.e. Honeywell)

19. Current Resin Producers • DuPont • Wellman • Solutia • BASF • Honeywell/DSM

20. Ford Toro Donaldson Corp. Tier I and Tier II suppliers to the auto industry Personal Recreational Vehicle Manufacturers (i.e. watercraft, ATV, motorcycles, etc.) Potential Outlets for Recycled Resin

21. Issues and Barriers in Mainstreaming Recycled Resin • Must convince manufacturers to use post-consumer carpet as a feedstock. • Currently fiber manufacturers are selling OEM manufacturers and tier I & tier II suppliers virgin nylon for cheap. • Cheaper to de-bottleneck a plant to increase capacity than to produce recycled resin. • Recycled nylon hinders virgin nylon sales-do not make much profit selling recycled nylon.

22. Continuation of Issues & Barriers • Virgin fiber manufacturers are operating at 50% capacity because of the recession, low oil prices, etc. • Recycling process starts with dirty material-costs money to handle it and make it homogenous; cheaper to produce virgin nylon, rather than clean dirty fiber. Dirty Fiber Virgin/Clean Product Recycled Nylon Cost to handle and clean

23. Next Steps • Identify what R & D steps need to be taken to perform ASTM and UL testing of recycled resin. • Ask fiber manufacturers to donate their current recycled resin to perform tests (ASTM and UL) funded by CARE. • Continue to explore and facilitate partnerships with manufacturers currently using recycled resin or with manufacturers that have the potential to incorporate recycled resin in their product(s) (i.e. Marvin Windows, Ford, etc.).

24. Timeline (Resin) Engage Fiber Manufacturers & Partners to Take Next Certification Steps Develop Workplan and Apply to CARE for Grant Funding Complete Workplan, Secure Funding, and Start Project Interim Report Complete Initial Testing and Modify Plan If Needed Complete Testing and Market Resin November 2002 March 2003 July 2003 December 2003 July 2004 December 2004

25. Composites

26. Potential Composite Manufacturers • Nylon Board Manufacturing • Marvin Windows • Weyerhauser A.E.R.T

27. Main Incentive for Composite Manufacturers The product will be able to successfully compete in the marketplace • Composites (wood-plastic or wood-nylon) are high performance materials that outlast wood products. Since consumers demand convenience and low-maintenance lifestyles, these composite products will be viable in the marketplace.

28. Issues and Barriers to Producing Composites with Recycled Resin • Inconsistent supply of resin available. • What is the right mix of fiber types? • Who will supply the resin? • Will manufacturers want to use recycled resin in their composite product?

29. Next Steps to Begin Composite Manufacturing • Identify consistent source of recycled resin • Validate recycled resin through ASTM and UL testing • Identify a manufacturing partner • Product design and validation • Marketing of product

30. Timeline (Composites) Engage composite manufacturers/ partners to take next R & D Steps Develop Workplan and Findings for Grant Funding Complete Workplan Funding and Start Project First Interim Report Complete Initial Testing and Modify Plan as Needed Second Interim Report Complete Product Testing and Market Product 2002 Dec 31 2002 July 2003 December 2003 July 2004 December 2004

31. Eco-Industrial Layout • Sell • Baled Carpet • Baled Fiber • Resin • Collection Center • Bale Material • Grind Material • Identify Material • Fiber/Resin (possible) • Additional • Manufacturer • Wood/Plastic • Composites • Extruded Board • Pay for: • Baled Carpet • Baled Fiber • Resin • Vendors • Contractors • Manufactures • Pay to take • Post-consumer • & Post-industrial • carpet • Pay for: • Baled Carpet • Baled Fiber • Resin Excess Manufacturing Capacity Traded • Nylon Board • Manufacturing • Extruded Board Goal:Utilize Manufacturing Capacity @ 100%

32. Why an Eco-Industrial Park Makes Economic Sense • Economies of Scale • Lower Production Costs • Lower Material Costs • Lower Infrastructure Costs • Greater Access to Financial Resources