Revenue-Based RecyclingTM

A Presentation for:

© 2008 Round2 Technologies, Inc.

Let’s Talk about WasteLet’s Talk about Waste

• e-Waste– Undefined Term– General Application:

• Consumer & Business Electronic Equipment Near or at End of Useful Life

– Global Topic• WEEE, ROHS• IAER, Texas Recycling

Alliance, ISRI– Best Practice

Support

– Unregulated Industry

State of the Waste…State of the Waste…

• 2005 – – 21 Million PCs

Obsolete in US– 2.63M Tons of e-

Waste Disposed in US

• Only 330,000 Tons Recycled!

• The LANDFILL

Where did the other 2.3M Tons go??

Carnegie Mellon and US EPA data

Corporate Recycling CostsCorporate Recycling Costs

• 3 Levels of recycling commitment• Increasing waste streams to increase

revenue• Incentive?

– Revenue– PR

Vendor ChallengesVendor Challenges

• Silicon Wafer Scrap• Solder Paste and Wipes• Solder Dross• Ic Trays, Tubes, Reels• Non-ferrous and Precious Metals• CRT’s and LCD’s• Production Equipment

Silicon WafersSilicon Wafers

• Patterned vs. Non-patterned• Resistivity

– Higher is better!

• Whole or Crushed– Single piece recovery– Crush / Granulate

• Onsite vs. Partner site destruction• Market Opportunity

– Market shrinking over next 6 months

Solder DrossSolder Dross

• Lead vs. Lead Free• What to manifest?

– Solder Wipes, Solder Paste – Level of Generation

• Complying with ROHS– What cost to comply?

• Equipment Changeover• New waste streams

Ic Trays, Tubes and ReelsIc Trays, Tubes and Reels

• Storage Issues• Weight Issues• Recovery?

• Answer:– Reuse– Recycle

Production EquipmentProduction Equipment

• Resale Value– New Markets– Service Parts Markets– Partners are the Key

• Recycling Value– Precious Metals– Non-ferrous Metals

e-Waste Problems Definede-Waste Problems Defined

• Political Solidarity– Lack of National Plan– Competing Strategies

• Advanced Recycling Fees• Producer Responsible Programs

– Classification of e-Waste– Lack of Universal Certification/Best

Practices

Problems Defined Problems Defined (cont)(cont)

• Insufficient Financial Incentive– Reduce the Cost Concern– Eco-Commerce– Drive Desire towards Responsibility

The SolutionThe Solution

• Revenue-Based RecyclingTM Programs– Paradigm Shift

• 2 Goals:– Simple– Free (or Better!)

• Simple: Burden of Work transferred to e-Recycler

• Free (or Better!): Cost center transferred to Revenue center

Identifying PartnersIdentifying Partners

• Local vs. National– Global?

• Certification and Best Practice– EPA Certification does not exist

• Insurance• Physical Location(s)

Identifying Partners Identifying Partners (cont)(cont)

• Processing Capability– Insource vs. Outsource

• Auditable Downstream• Expertise & Knowledge of Commodity

Markets

Case StudyCase Study

• Client: Chip Manufacturer– 5th Largest Semiconductor Company in the

world– 2006 Revenues of $10B

• Problem: Production Scrap; Manufacturing Waste; IT Equipment; Production Equipment– Multiple Locations– Environmental liabilities– Desire to recapture cost from scrap

Case Study Case Study (cont)(cont)

• Solution: Revenue-Based Recycling Program– e-Recycler integrated into customer

process– Color-coded collection bins– Recycling signage– Full Logistics Services from each location

• Results:– Reduced waste = Reduced landfill– Revenue Return: 2007 in excess of $180k

Q&AQ&A

Thank you!

Jeff RemakelRound2 Technologies, Inc.(512) 342-8855jeff.remakel@round2.net