PAGE 1 FRP (Fibre Reinforced Plastic) Recycling - Manitoba 13 May 2009.

PAGE 1

FRP (Fibre Reinforced Plastic)

Recycling - Manitoba

13 May 2009

PAGE 2 13 August 2008

Overview• Background Information

• Recycling Processes for FRP

• Recycled Material Properties

• Possible Markets

• Business Model Options

• Conclusions

• Next Steps


Background Information• FRP (Fibre Reinforced Plastic) scrap produced in large

quantities across Canada• Estimated that 700 – 800 MT/yr in Manitoba

• FRP trim and scrapped parts from production

• FRP in MB is glass reinforced thermosetting resin• Cannot be melted and reformed as with thermoplastics

• Alternative recycling method is required

• Several unsuccessful attempts at developing recycling systems, based on two models:• Regional recycling networks

• In-house recycling


Background Information• Interest in finding solution for recycling from:

• Industry

• Government

• General public

• Potential economic and green benefits from recycling FRP• Smaller environmental footprint

• Lower landfill costs

• Lower transportation costs to Landfill

• Possible revenue opportunities

• Project started in August 2008 to study potential FRP recycling solutions for Manitoba and Southern Interior BC


Background Information• FRP Recycling Project – Milestones completed to date:

• Carried out research into FRP Recycling N.America/Worldwide

• Polled all FRP producers in regions, to obtain:

• Scrap Material Type and Quantity

• Cost of processing and landfilling scrap

• Obtained buy-in to the project from 9 of the 10 largest scrap producers in the regions

• Collected, sorted and ground their highest volumes of scrap

• Developed a business model and marketing database

• Analyzed all information and recommended further testing

• Currently: Organizing testing for next stage of project


Recycling Process• Recycling Methods Available

• Combustion

• Fluidised Bed Process

• Pyrolysis

• Sub-Critical Water Hydrolysis

• Chemical

• Mechanical

Energy Recovery Only

Resin Oil and Fibre Recovery

Energy and Fibre Recovery

Fibre Recovery


Recycling Process• Down-selected Mechanical Processing

• Most readily available process

• Most cost effective to start up and run

• Some proven use in FRP industry

• Can be considered more friendly to the environment

• No chemicals

• No high temperatures

• Low energy requirements


Recycling Process• Mechanical Processing Equipment


Recycling Process• 2 equipment suppliers selected

• Fibre Recovery Products, Winnipeg

• Seawolf Design, New Smyrna Beach, Florida

• 13 samples of the highest volume scrap collected

• 2 grades of fibres obtained from grinding• Coarse material using 1/4” screen

• Fine material using 1/16” screen

• Total of 52 recycled samples obtained for MB (and a further 44 from SIBC)

• All samples were logged, photographed and bagged


Fine Grind

1/4” Screen

Coarse Grind

1/16” Screen

Scrap Material

Recycled Material

Recycling Process• Mechanical grinding with screens


F-2

Discrete Fibres

No Fibre Content

Non-discrete Fibres / Low Quality Fibres

E-1 F-1

F-3

H-1

H-4

I-2

I-3

Recycled Material Properties• Sorted by Type

G-1

H-2

I-1

H-3

G-2

Scrap collected represents over 80% of FRP waste generated by MB companies


Markets

Thermoset FRP

Asphalt

Thermoplastics

LEED Building Products

Cement Products


Parking stall curbs

Construction barricades

Temporary traffic barriers

Vinyl siding additive

Tooling material additive

Insulation material

Flow medium

Aerating material

Patio stones

Garden ornaments

Countertops

Noise absorption material

Viscosity modification of polymer mixes

Hardwearing additive for road paint

Recyclate and natural fibre mat material

Blast medium for removing paint

Wall/floor coverings

Plastic wood products

Roofing shingles

Roofing asphalt additive

Markets• Other specific uses for recycled FRP


Markets• Cement Additive

Benefits:

• Proven plastic shrinkage reduction in Europe

• Large/very large volume market and varied products

• Encapsulates material so safer for future generations

• Can handle varied/imperfect materials and filler/resin/fibre mix

• Competes with value added products that charge a premium

Risks:

• Cement degradation due to alkaline attack on glass fibers possibility of leaving voids over time

• Supply too low for certain markets

• Need to certify material before any widespread use


Markets• Thermoplastic Additive

Benefits:

• Short fibres provide slight reinforcement

• Thermoplastic market is mostly unreinforced property gains

• Process improvements demonstrated in Europe

• Medium to large market and varied products

• Can use short fibers and filler at high % loadings (30%+)

• Low risk of adverse chemical reactions with recycled material

Risks:

• Surface quality of thermoplastic is reduced limits market

• Lower value use of material than cement


F-2

Cement

Thermoplastics

E-1 F-1

F-3

H-1

H-4

I-2

I-3

Markets• Preferred Applications

G-1

H-2

I-1

H-3

G-2

Flow Medium


Markets• Scrap Quantities by Market (Metric Tonnes/Year)

Note: Quantities assume 50% of recyclate is pure fibre remaining is resin/filler

224

104

306

143

0

50

100

150

200

250

300

350

400

450

Sc

rap

Qu

an

titi

es

by

Ma

rke

t (M

T/y

r)

Minimum Maximum

Min/Max Production Rates

Scrap Quantities (MT/yr) by Market for Minimum and Maximum Production Rates - Manitoba

Thermoplastic Additive

Cement Additive


Business Model Options

• Assumptions for setting up FRP Recycling Mechanism

• Manufacturing companies are willing to pay the recycling company equivalent external costs per MT (transportation and tipping fees)

• Material price (conservative) and volumes (min/max) used are per table below

• Loan servicing and financing have not been taken into account

• Amortization, interest and taxes have not been analyzed


Business Model Options• Standalone Recycling Facility

FRP Company

Shredder / Grinding

Equipment

Holding Bin

Cement Company

Short Fibre/Filler

Thermoplastic Company

$

Long Fibre/Filler

$

$

$$$

Transportation and Tipping Fees Direct Labour Direct Utilities Packaging costs Cost of Goods Sold

Cost of Goods Sold

Insurance (quotation required) Property taxes (high? required?)Dangerous Goods, WHIMS, StorageRepairs/MaintenanceLease General - Factory Overhead Marketing Research and DevelopmentBank ChargesOffice Supplies Legal Audit General - Office and AdminTelecommunicationsManagement & Admin

Expenses:

StandaloneRecycling Facility



CM = Contribution Margin

CMR = Contribution Margin Ratio



Breakeven MT = > 450 MT / year Breakeven Revenue = $ 550,000

Cost Volume Profit (New Company Recycling - MB)

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

$600,000

328 352 376 401 425 449

MT Processed and Sold (one year)

Rev

enu

e

Revenue

Total Costs andExpenses


Business Model Options• Shared Recycling Facility

Cement Company

Short Fibre/Filler

Thermoplastic Company

$

Long Fibre/Filler

$

$

$$

Transportation and Tipping Fees Direct Labour Direct Utilities Packaging costs Cost of Goods Sold

Cost of Goods Sold

SharedRecycling Facility

Insurance (quotation required) Dangerous Goods, WHIMS, StorageRepairs/MaintenanceGeneral - Factory Overhead Bank ChargesOffice Supplies General - Office and AdminManagement & Admin

Expenses:

FRP Company

Shredder / Grinding

Equipment

Holding Bin


Business Model Options• Shared FRP Recycling Facility

CM = Contribution Margin

CMR = Contribution Margin Ratio


Business Model Options• Shared FRP Recycling Facility

Breakeven MT = 345 MT / year Breakeven Revenue = $ 281,484

Cost Volume Profit (In-house Recycling - MB)

$250,000

$270,000

$290,000

$310,000

$330,000

$350,000

$370,000

$390,000

$410,000

328 352 376 401 425 449

MT Processed and Sold (one year)

Rev

enu

e

Revenue

Total Costs andExpenses


Business Model Options

• Preferred Option: Shared recycling facility

• Offset low volumes/downtime with another business that has facility space

• Existing recycling company

• Manufacturer

• Low set-up costs for someone to start FRP recycling

• Possible government grants/subsidies

• Potential for high revenue if material can be sold as a value added product

• Reinforcement material

• Green material


Conclusion

• FRP Recycling is technically feasible

• Proven uses in Europe

• However, technical risks testing required to verify

• FRP Recycling has a market

• Cement and thermoplastics are preferred

• However, more markets are possible in the future

• FRP Recycling has a feasible business model

• Facility likely needs to be shared with another business

• However, good revenue stream could be possible


Next Steps

• Testing

• Initial testing with cement and thermoplastics – Jun/July 2009

• Increase awareness of FRP Recycling

• Obtain support from industry/government/academia

• Develop relationships inside and outside Manitoba

• Investigate post consumer scrap (boats, canoes, tanks, etc)

• Develop business model and marketing data further

• Carry out a technology demonstration – Sep/Oct 2009

• Develop Commercialization Plan for recycling – Dec 2009


CONTACT INFORMATION

THANK YOUWill Darracott M.Eng

Engineer, Composite Applications EIT

CIC Contact Information:Website: www.compositesinnovation.ca

Email:

Tel No.: 204-262-3400 x208

[email protected]

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