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How High Will Virgin Asphalt How High Will Virgin Asphalt Go?Go?

What You Can Do About It!What You Can Do About It!33rdrd Asphalt Recycling Forum Asphalt Recycling Forum

November 1-2 2007November 1-2 2007Chicago IllinoisChicago Illinois

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Price trends

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Oil Industry Views

"The time when we could count on cheap oil…is clearly ending." – David O'Reilly, Chairman, Chevron (February 2005)

"The era of cheap hydrocarbons is over." – Viktor Khristenko, Russian Energy Minister (June 2006)

"Peak oil does not exist for easy-to-drill oil." – Jeroen van der Veer, Shell Chief Executive (January 2006)

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Peak Oil

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World oil discovery peaked 40 years ago

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250 years of coal? It's the maximum flow rate, not the stock

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When? Now - 2012

T. Boone Pickens: oil/gas investor Matt Simmons: largest energy banker A.M.S. Bakhitari: Iranian oil exec. Ken Deffeyes: retired Shell geologist Colin Campbell: ret. Texaco/Amoco

geologist E.T. Westervelt: US Army 7 other analysts

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What Can You Do!

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Using Roofing Shingles

Roofing shingles, especially those from manufacturers’ waste, have many of the same ingredients as hot-mix asphalt. This includes high quality asphalt binder, hard fine aggregate, mineral filler, polymers, and fibers. Many state agencies allow up to five percent of recycled shingles in HMA. With an asphalt binder content of 20 percent, the use of five percent shingles in your mix could reduce the HMA binder content by one percent. This would mean, for instance, instead of adding 5.5 percent liquid asphalt, you would add only 4.5 percent. For each 10,000 tons of mix, this would save 100 tons of liquid asphalt and at $250/ton this would save about $25,000 on mix cost. Dave Newcomb, P.E., Ph. D., is the Vice President–Research & Technology for National Asphalt Pavement Association.

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Shingle EcomomicsDJK-MPCA -- Recycled Residential Shingle / Hot Mix Asphalt Scenario 11-01-07

400,000 Metro Area Residential Recycled Shingle material300,000 tons of potential ground recycled roofing Shingles

5% shingle content in Hot Mix Asphalt6,000,000 tons HMA needed to utilize all the RRS5,000,000 tons of HMA used in the metro area.

75% assumed use of RRS3,750,000 metro HMA tons containing RRS

187,500 max practical use of finished RRS10% reject rate

208,000 RRS needed for processing$30 Shingle tipping fees

$6,240,000 Processing Gross tip fees For RRS$3.00 HMA Purchase Cost Reduction due to RRS use

$11,250,000 Savings in HMA Purchase costs2.5 Employees per grinder 7.5

3 grinders 230000 $690,0003 loaders 110000 $330,0003 magnet / trommels 75000 $225,000

Capital Expenditure$1,245,000

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Advantages

Longer Term price stability for producer and customer.

Makes your pricing more competitive. Fits in with project that are seeking green

credits.

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Shingle Grinding Operation

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Recycling Benefits: Energy, Economic, & Greenhouse Gas Savings

2006 2011 Difference

BTU savings 46 trillion 65 trillion 19 trillion

Energy savings (equiv households)

410,000 573,000 163,000

GHG savings CO2 (MTCE)

6.4 million 9.4 million 3 million

GHG reduction (equiv cars)

1.2 million 1.7 million 400,000

Dollar savings $539 million $762 million $223 million

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Contact Information

Wayne Gjerde

Recycling Market Development Coordinator

Enviromental Economic Development

MPCA

Ph 651-215-0270

Email wayne.gjerde@state.mn.us