The Quotas Are Coming: A 7-Point Plan for the Future of Plastic Processing

1 Don't chill, act:

It is tempting to believe that the chemical industry can use its chemical recycling processes to prepare complex material flows in such a way that processors do not have to change their own processes. After all, chemical recycling aims to provide the market with mass-balanced chemical recyclates in virgin material quality in the future. However, the “chemical recyclate” does not have to contain a single gram of actually recycled carbon.

However, the processes for chemical recycling are not available on a scaled basis, nor has it been proven that they can actually handle complex, contaminated material flows, let alone whether this makes any sense in terms of life cycle assessment given the extremely high energy requirements and potentially toxic by-products and hazardous waste.

2. Product design:

Where in the past products were optimized for the use phase, it is now up to product designers and plastics engineers to optimize all products, without exception, so that they can be recycled in advanced mechanical recycling processes after use (“recyclable”) as well as being able to absorb recyclates themselves (“recyclate use”). A real dilemma has to be overcome: Wafer-thin multilayer materials with seven or more different layers and properties are, on the one hand, a blessing and a masterful feat of engineering due to their lower plastic consumption; on the other hand, a curse for the planet due to their de facto inability to be recycled. In future, the formula must apply: it is better to use a little more material in the utilization phase, but eight to ten recycling cycles for all thermoplastics without exception.

3. Check your plant:

It is already worth checking your own plant facilities to see whether it is ready for the use of recyclates. Where economic operation permits, initial attempts should be made to use PIR and PCR material, or discussions should be sought with the plant manufacturer at an early stage. There is still plenty of room for improvement here, and machine manufacturers are in the starting blocks to raise recyclate qualities in processing to unimagined heights.

4. Exploration of new supply chains and suppliers:

Those who do not want to become dependent on the promise of salvation of chemical recycling, change product design and subject their plant and equipment to a review will ultimately have no choice but to look for new suppliers in order to establish and secure new supply chains at an early stage. The use of recyclates is still very much an individual business today and will remain so in the short term; conversely, this means that recyclers and compounders will have to adapt to the individual requirements of a plastics processor who is entering the recyclate market for the first time on a quota-driven basis; they will not simply be able to supply “off the shelf”. This is why it is so important that processors and brands engage early with suppliers and platforms that can help them transition to the circular future.

5. Biogenic carbon must gradually replace fossil polymers:

The defossilization of the chemical industry is an absolute necessity if the Paris climate protection targets are to be met. Anyone who shares this insight must examine whether and how biogenic carbons can replace fossil fuels in their operations. Because even in the future scenario outlined here of massively scaled, high-quality mechanical recycling in 2030, there will be no way around the laws of thermodynamics, i.e. carbon chains cannot be recycled forever and must be replaced or supplemented by virgin material. In the future, however, this will no longer come from crude oil and will therefore formulate new requirements for material use and supply chain security.

6. Employee training and further education:

The German government's National Circular Economy Strategy (NKWS) formulates a new mission statement for the plastics industry. In future, it should see itself as a “circularity service provider for carbon” - and no longer as a linear chain from production to processing, use and disposal. If you want to take this seriously in your own company, you have to train and educate your employees accordingly, because: In the past, the end-of-life issue has hardly aroused any interest among participants in the virgin chain, let alone been a mandatory part of the training of chemical engineers and plastics technicians. This has to change; educational opportunities are increasingly available today.

7. Make digitalization a top priority:

The complexity of building supply chains from recycled waste is considerable. There is already a lack of reliable data on the composition and origin of the material at the waste level; in order to provide the market with recompounds of reliable quantity and quality, there is no way around digitizing material flows in purchasing and sales and networking companies across all stages of the value chain. Such a fundamental digitalization of the circular economy requires the buy-in of company management, as it presents every company with enormous personnel and financial challenges. Those who get to grips with digital technologies and providers at process and hardware level at an early stage will have a long-term advantage in the emerging age of artificial intelligence.

The transformation towards “circularity service providers for carbon” requires a massive rethink from everyone in the plastics industry and is shaking up traditional business models. It is obvious that major economic vested interests are coming into a fierce conflict with one another. But it is unavoidable. If you want to future-proof your business, you can take important steps along the way with the recommendations for action outlined here. Of course, this will cause adjustment pain and costs. But it is equally certain that the longer you wait to act, the higher these costs will be. Recognizing this and acting accordingly requires courage and perseverance. I have no doubt that we can do it - if we tackle it seriously and persistently.

Author: Christian Schiller, CEO Cirplus

This article was first published on 27.08.2024 in "PLASTVERARBEITER" and translated from German to English with deepL.com.