YOUR PLASTICS SOLUTION FOR THE FUTURE

PRESENTATION OUTLINE

June 2019 2

Merlin Plastics Overview – What We Do

Our History – Timeline & Highlights

Our Facilities – Merlin Group of Companies’ Locations

Factors for Success – Innovations, R&D, Partnerships, Culture

Looking Ahead – The Circular Economy in Motion

Thank you

Merlin Plastics Group

WHAT WE DO

Merlin Plastics is a processor of post-consumer and post-industrial plastics. We process flexible plastics, including PE film scrap (printed and non-printed), as well as rigid plastics, such as HDPE milk containers, PET soft drink containers and polypropylene containers, such tubs and lids.

Our Mission: To provide environmentally sound, economically efficient and socially responsible recycling options for discarded packaging.

June 2019 4Merlin Plastics Group

• From curbside collection & recycling depots

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• Processing of plastic containers into recycled polymer that meet or exceed the market demand

RECYCLING IS OUR BUSINESS

• To sortation facility, largest on the West Coast

Merlin Plastics Group

OVERVIEW: THE MERLIN GROUP

• Largest plastics processor in Canada • Fifth largest post-consumer plastics processor in

North America• Seven facilities in North America• 400 employees, more than 100 in BC• Over 300 million pounds (150,000 tonnes) of

discarded plastic packaging processed annually

June 2019 6

A founding partner of Green by Nature

RecycleBC developed a new EPR system in BC

In 2014, RecycleBC awarded Green by Nature EPR by the contract for all of BC

The result was an investment of $32 million and the creation of 527 new jobs

Green by Nature is responsible for the end-of-life management for containers in all of BC

We are now integrated from ‘curbside to pellet’

MERLIN PLASTICS – RecycleBC AND GREEN BY NATURE

7June 2019Merlin Plastics Group

June 2019 9Merlin Plastics Group

1987• Established Merlin Plastics BC in Delta, with 4 people operating out of a 2,000 sq. ft. facility

1991

• Partnered with Dow Chemical Canada and BC Ministry of Environment to process post-consumer HDPE milk bottles• Doubled the size of Delta plant and added new washers, dryers and granulator

1992• Established processing capability for industrial HDPE food pails

1994-1995

• Partnered with Dupont Canada to process flexible packaging

1996-2000

• Developed and patented pre-wash technology• Built multi-material beverage sorting facility in Delta

2000

• Formed Merlin Plastics Alberta, opening Calgary plant with focus on PET• Reconfigured Merlin Plastics BC to focus on PP, PE and post-industrial plastics

MERLIN PLASTICS – Timeline & Highlights

June 2019 10Merlin Plastics Group

2004•Developed proprietary pre-wash technology

2009•Established Peninsula Plastics Recycling in Turlock, CA

2010•Obtained FDA approval - PCR-PET pellet for food contact

2014

•Opened state-of-the-art sortation facility in New Westminster, BC•As Green by Nature ERP (‘GBN’), was awarded contract to manage post-collection system for all of BC

2016

•Acquired Entropex that led to the birth of ReVital Polymers•Developed NIR/Color Sorting Process of PP parts/containers from curbside MRF

2017-2018

•ReVital certified for ISO 9001 : 2008 •Received FDA approval for food application (e.g. knife and fork) for one of Merlin’s PE / PET grades•ReVital certified for ISO 9001 : 2015

MERLIN PLASTICS – Timeline & Highlights cont’d

Merlin Facilities at a Glance

12June 2019Merlin Plastics Group

Delta, BC

• Original facility, est. 1987• Approx. 145,000 square feet• Merlin Group’s head office and

R&D headquarters• Multi-material container sorting

capability of 200 million pounds• Processes HDPE, PP & LDPE• Annual output of over 100 million

pounds of reprocessed plastic

June 2019 13

New Westminster, BC

• 180,000 sq. ft. state-of-the-art multi-material sorting plant

• Built in 2014 in response to RecycleBC’s new residential packaging and printed paper recycling program

• Processes of all types of plastic, glass and metal containers from residential blue box programs in Metro

• Annual capacity of 200 million pounds

June 2019 14

Alberta Facilities

Calgary• PET processing facility for

bottle, sheet and thermal formers, strapping, fiber

• Annual output of 70 million pounds

Bassano• Dedicated to Agricultural

PE Film • Annual output of 10

million pounds

June 2019 15

US FacilitiesWarren, OR (ORPET)

• PET bottle, sheet, thermal formers

• Annual output of 30 million pounds

Turlock, CA (Peninsula) – PET• PET bottle, sheet, thermal

formers, strapping• Annual output of 60

million pounds• FDA approval for both

flake and pellet

June 2019 16

Sarnia, ON

ReVital Polymers• HDPE & PE container

sorting and processing plant

• Founded in 2016• 100 million pounds annual

output

June 2019 17

INNOVATIONS: OPTICAL SORTING

State-of-the-art optical sorting gives Merlin the ability to sort feedstock efficiently by material and colour to provide the highest value to the customer

June 2019 19

Optical Technology

MERLIN NIR/COLOR SORTING PROCESS

PP PCR Flake

Molded Chips White & Blue Color Study

PP PCR Flake extruded and pelletized

Molded Chips

June 2019 20Merlin Plastics Group

INNOVATIONS: PATENTED PRE-WASH

Our patented pre-wash system contributes to the production of FDA approved, food grade PET pellets

June 2019 21

INNOVATIONS: SOLID-STATE POLYCONDENSATION

Our Solid-State Polycondensation (SSP) equipment allows us to produce FDA approved, food grade pellet and flake

June 2019 22

RESEARCH & DEVELOPMENT

An in-house R&D lab allows the Merlin Group of companies to continually test and refine our processes, leading to increased quality products and ongoing innovations

June 2019 23

END MARKETSMerlin has provided reliable markets for waste plastics for 30 years, resulting in strong relationships with local governments, stewardship and advocacy groups, brand owners and private industry partners

June 2019 24

GREEN CULTUREThe ‘green’ culture in BC, and initiatives by both the Province of BC and Metro Vancouver to reduce and recycle solid wastes, have contributed to Merlin’s success

June 2019 25

Curbside Recycling

Recycle/ Bottle Depots

Canada Moves Toward a Circular Economy

June 2019 27

Circular Economy Innovation Lab (CEIL) Framework

28June 2019Merlin Plastics Group

Container Circular Path

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30June 2019Merlin Plastics Group

THANK YOU

We look forward to a long and mutually beneficial relationship

31Merlin Plastics Group June 2019

Waste-to-Energy Facility Environmental Monitoring and Reporting – 2018 UpdateBrent Kirkpatrick, P.EngLEAD SENIOR ENGINEER

Zero Waste Committee June 14, 2019

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Continuous Emission Monitoring System

Stack Sampling Ports

Continuous Emission Monitoring Analyzers

3

Quarterly Manual Stack Testing

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Fly Ash and Bottom Ash Monitoring

Bottom Ash Loading Bottom Ash Weekly Composite Samples

Loaded Fly Ash Trailers

Fly Ash Composite Samples

• Completed Dispersion Modelling Study and Human Health Risk Assessment Report

• Real-time emissions data available on website • All environmental reporting submitted to the Province is

posted to the website:

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Operational Certificate

o Monthly compliance reportso Annual compliance reportso Quarterly stack test resultso Semi-volatile organic

compound stack test results

o Bottom ash weekly composite data

o Quarterly fly ash summary

2018 Greenhouse Gas Emissions:• 276,698 tonnes• 45% anthropogenic• 55% biogenic (organic)• Calculations verified

independently• Annual reports to provincial

and federal databases6

Greenhouse Gas Emissions Reporting

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Waste-to-Energy in a Regional Context

WTEF0.007%

Industrial19.1%

Open Burning

6.6%

Heating32.0%

Road Vehicles

5.6%

Non-Road Engines12.2%

Air / Rail / Marine5.8%

All Other18.8%

2018 Lower Fraser Valley Fine Particle Matter (PM2.5) Emissions Sources

WTEF0.4%

Industrial14.8%

Open Burning

0.2%Heating

8.7%

Road Vehicles

29.7%Non-Road Engines16.0%

Air / Rail / Marine28.8%

All Other1.4%

2018 Lower Fraser Valley Nitrogen Oxides (NOx) Emissions Sources

Thank you

2018 Waste Composition Study

Terry Fulton, P.Eng.PROJECT ENGINEER

Andrew DoiENVIRONMENTAL PLANNER

Zero Waste Committee June 14, 2019

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Background• Metro Vancouver conducts waste

composition studies annually toobtain valuable metrics:• What’s in the waste stream• Progress of various initiatives• Materials to target for future programs

and policies

• Studies alternate between full-scale and focused

Here’s a link to the video:http://www.metrovancouver.org/media-room/video-gallery/mv-video/310235320

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2018 Scope• Four weeks at regional disposal

facilities

• 100 Samples from four sectors• Single Family• Multi-Family• Commercial/Institutional• Residential Drop Off

• Two weeks sampling streetscapewaste from 8 municipalities

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Methodology• Truck tips load

• Sorters randomly select 100kg of the load

• Sample is sorted and weighed into 161 categories

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Overall Regional Composition

Paper18.1%

Plastic16.4%

Compostable Organics

26.0%

Non-Compostable Organics

16.4%

Metals3.8%

Glass2.4%

Building Material5.6%

Electronic Waste1.0%

Household Hazardous0.9%

Household Hygiene7.4%

Bulky Objects0.5%

Fines1.5%

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Composition Over Time

55 64 64 63

59 61 63 57

151105 91 91

41

5435 57

0

50

100

150

200

250

300

350

400

2013 2015 2016 2018

Disp

osal

(kg/

capi

ta)

Fines

Bulky Objects

Household Hygiene

Household Hazardous

Electronic Waste

Building Material

Glass

Metals

Non-Compostable Organics

Compostable Organics

Compostable Products and Packaging

Plastic

Paper

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Plastics

• “Blue Box” plastic is a small proportion of all plastic in garbage• Film plastic and non-recyclable plastics more commonly disposed

Plastics CompositionCategory 2016 2018Blue Box Plastic 2.8% 2.0%All Other Plastic 16.0% 14.4%kg/capita (All Plastic) 63 57Total tonnes (All Plastic) 156,000 146,000

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• Beverage Containers• Packaging

• Curbside• Multi-Family

• Plastic Products• Commercial/

Institutional

Plastics: Rigid Containers

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• What is the difference?

• Depot collection• Recycling and

Engineered Fuel

Plastics: Film & Flexible Packaging

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• Streetscape highly variable due to bin location, recycling streams available, bin design, program age and other factors

• High percentage of pet waste likely due to location of bins sampled (i.e. near dog walking areas)

• Municipal streetscape studies offer location-specific results

StreetscapeStreetscape Garbage Receptacle Composition by Material

Pet Waste 49%Compostable Material 19%Recyclable Containers 13%Recyclable Paper 10%Garbage 6%Depot Recyclables 3%

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• Extent of single-use items in streetscape not necessarily captured in available data

• More information to follow in detailed single-use item composition report

Single-Use ItemsSingle-Use Item Disposal

Single-Use Item Type Items Disposed (millions)

% by weight of overall composition

Retail Bags 260 0.9%Disposable Cups 260 0.6%Takeout Containers 180 0.7%Straws 96 <0.1%Utensils 330 0.1%Total 1.1 billion 2.4%

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Summary• Compostable organics remains

the largest component in waste

• Paper and plastic are still significant components

• Single use items are small by weight, but large by number

Questions?

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