First Star Recycling is installing new sorting equipment estimated to capture more than three million used beverage cans (UBC) a year that are missorted at its material recovery facility (MRF). Can Manufacturers Institute (CMI) funded the equipment as part of its efforts to capture more beverage cans at MRFs, making progress toward its aluminum beverage can recycling rate targets. Up to one in four UBCsare missorted in a typical MRF, which separates single-stream recyclables, even though UBCs are consistently one of the most valuable commodities in the recycling stream.
CMI has leveraged this high economic value of UBCs to finance can capture equipment while making some or all the money back from the recipient providing a share of the revenue generated from the cans captured. CMI beverage can manufacturer members Ardagh Metal Packaging (AMP) and Crown Holdings (Crown)provided funding for the first two revenue share agreements. They were EverestLabs robots installed on the 鈥渓ast chance recovery 濒颈苍别,鈥� which is the sorted material destined to go to landfill, at a Lakeshore Recycling Systems MRF in Chicago, IL and a Caglia Environmental MRF in Fresno, CA. Both MRFs agreed to share 50% of the revenue from the cans captured with the robots.
鈥淚nvesting in can capture equipment is a key component of our broader commitment to increasing recycling rates and improving the can-to-can loop,鈥� said Sandrine Duquerroy-Delesalle, Vice President of Global Sustainability and External Affairs at Crown. 鈥淏y prioritizing the recovery of infinitely recyclable aluminum, we help reduce unnecessary landfill waste and increase the beverage can鈥檚 current average recycled content of 71 percent, ultimately contributing to a lower carbon footprint for the U.S. beverage can manufacturing industry.鈥�
The latest revenue share agreement is for a Green Machine eddy current at First Star Recycling鈥檚 Omaha, Nebraska MRF, which serves all of Nebraska and parts of Iowa and South Dakota too. An eddy current uses magnetic forces to separate out non-magnetic metal like aluminum beverage cans from other recycled materials. This eddy current was paid for with funding from AMP and Crown, as well as the revenue received from the first two revenue share agreements.
鈥�We are proud of this impact-driven financing,鈥� said Jens Irion, CEO of Ardagh Metal Packaging, North America. 鈥淭his is a sustainable investment model whereby our initial investments in can capture technology are now catalyzing millions more beverage cans for recycling as money is returned and reinvested back into sorting equipment.鈥�
Once the principal is paid back to CMI, no more payments are required, and First Star Recycling will then own the equipment to continue using the eddy current to capture even more UBCs. The financed eddy current, which is expected to be installed before the end of the year,聽will be the second in the facility and placed on the fiber line. In some cases, beverage cans are missorted to the fiber line if they are flattened or make it past the fiber line鈥檚 optical sorter. First Star Recycling anticipates the second eddy current capturing 50 tons of UBCs a year.
鈥淲e are very excited to have this equipment, at no up-front cost to us, to capture even more aluminum beverage cans, which are a key material grade for any recycling program,鈥� said Patrick Leahy, CEO of First Star Recycling. 鈥淲e are comfortable sharing 50% of the revenue from the cans captured with this equipment and guaranteeing full payback of the principal because we are confident the equipment will pay for itself. And it feels like a way to more than pay it back but pay it forward so CMI can help even more communities capture more cans.鈥�
Financing can capture equipment to recycle missorted cans is one of the four pillars of action that CMI has set to achieve its ambitious beverage can recycling rate targets. 鈥�While CMI and its members are proud that the aluminum beverage can is consistently the most recycled beverage container in the United States, we are committed to reaching new heights,鈥� said Scott Breen, President of Can Manufacturers Institute. 鈥淧rograms like revenue share agreements for can capture equipment result in millions of additional cans recycled and deliver a high return–on–颈苍惫别蝉迟尘别苍迟.鈥�