Glass Recycling Update

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1 Glass Recycling Update

2 STRATEGIC MATERIALS FOOTPRINT Seattle Cornwall Owatonna St. Paul Withee East Troy Collingwood Guelph Toronto Brampton Franklin S. Windsor Sacramento Muscatine Chicago (3) Ashley Cleveland Fairfield Modesto Salt Lake City Hartford City Dunkirk Newark Madera Las Vegas Kansas City St. Louis Lexington Indianapolis (2) Commerce Vernon Ashland City Durham Wilson Mexicali Phoenix Atlanta (2) Glass Facilities (37) Midlothian 3-Mix Facility (8) 3-Mix + Fine Grind Facility (9) Houston Jacksonville Fine Grind Facility (3) Sarasota Specialty Glass Facility (2) SMI has the Largest Network of Glass Recycling Plants in North America the facilities are strategically located near our customers allowing for lower shipping costs and better service 2

3 What We Do Products Using Recycled Glass 3 Copyright Strategic Materials, Inc.

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6 3-MIX SINGLE STREAM SPECIFICATION 3-MIX Single Steam Specification Criteria Description Examples Target NGR Non-Glass-Residual found in municipal recycling program Paper, Plastic, Aluminum, steel 10% Maximum U/S Undersize Glass particles < 3/8 (or < 1/8 *) Mixed color glass particles 12% Maximum Other Criteria Target Ceramics Broken bits of household ceramic Dinner plates, mugs, cups.02% Maximum Color Flint, Amber, Green(s) & other Food containers, beer bottles, wine/ soda bottles See above table in Definition Moisture Excessive water mixed with glass** Rain, snow, ice 5% Maximum Excluded Waste Other, possibly hazardous waste CRT, radioactive, medical waste, heavy metals, etc. 0% (Zero) see Excluded Waste Definition Initial Specification Proposal required Mrf s to meet best practice Mrf operators. Hard to adopt mid contract Didn t recognize different line layouts / age of lines Needed additional quality layers

7 ISRI REVIEW: MRF Glass Specification Material Recovery Facility-derived 3-Color Mixed Container Glass ("MRF Glass") DESCRIPTION FOR ISRI REVIEW: MRF Glass consists of crushed or whole scrap flint (clear), Amber (brown), and Green (emerald) container/bottle glass made from soda-lime-silica. All MRF glass must be free of medical or hazardous wastes and poisonous or other harmful substances or liquids. These standards and practices apply to 3-color mixed glass for purchase or sale in the United States and Canada. Transactions covering shipments to or from other countries may also be in accordance with these standards and practices and may be modified by mutual agreement between buyer and seller. These specifications are guidelines for buying and selling MRF glass are always subject to the buyer and seller s agreement. It is recognized that MRF Glass can be mixed with other materials for the convenience of recycling and efficient collection and that quality levels and pricing varies widely based on the amount of contamination mixed in with the glass. Outthrow and Prohibitive tolerances for Material Recovery Facility-derived 3-Color Mixed Container Glass are: Outthrows Description Examples Tolerance on- Glass Residuals NGR) Common program and non-program materials found in Recyclable Single and Dual Streams recycling programs entering a Material Recovery Facility Non-Glass and organic materials such as paper, wood, food-or plant particles, metal/plastic closures, rocks, and other inert materials and fines Varies See below chart ndersized or pulverized Undersize Glass particles < 3/8 (or < 1/8 *) Mixed color glass particles crushed so small as to Varies See below chart aterial ("Fines") render optical sortation useless eramics Broken bits of household ceramic Dinner plates, mugs, cups, etc. 2% Maximum oisture Excessive water mixed with glass** Rain, snow, ice 5% Maximum F i n e s 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% Prohibitives Description Examples Tolerance Materials which contaminate whole loads of MRF glass.025% rendering it unusable for melting Maximum Material which is Prohibited and subject to load Rejection Non Glass Residual (NGR) 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% Proposed Glass Specification Grade A 3mix Glass: This glass has been processed bby a Mrf with glass cleaning equipment that runs the -2" screen material thru vaccuum pickups points which removes the light fractions such as paper shred, paper and plastic labels, small plastic pieces typically found in MRF glass. This specialized equipment can be found in new and retrofitted Mrf's. This material commands the highest value as the Mrf has prioritized a high glass value above convenience. Grade B 3mix Glass: This glass has been processed by a Mrf with minimal glass cleaning equipment or one with glass cleaning equipment that is not performing properly or where the Mrf is running over capacity. This material does not command the highest value as it has some mrf residue Grade C 3mix Glass: This glass has been processed by a Mrf with no glass cleaning equipment or one with glass cleaning equipment that is not performing properly or where the Mrf is running over capacity. This material has the lowest value as it is heavily contaminated with residue PyroCeramics (Fireplace glass); gypsum/wallboard/drywall (including glass from construction demolition processing with mixed CaCO3 fines); common moisture-absorbing desiccants (silica gel beads, alumina pellets, closet paks, etc.), bromides, hydroxides, and sulfates; all electrical batteries "Unacceptable Hazardous Materials, materials which could contaminate CRT glass, lead glass, tempered window glass, flammables, radioactive 0% Material" Cities which is and MRF Operators need to agree on a specification glass as to make it unusable, any substance that is present waste, weapons, medical waste, insecticides, poisons, heavy metals, subject to in sufficient quantity is harmful to human health asbestos, etc. Rejection to drive transparency and accountability

8 Texas Glass Markets Strong or Not Advocates of glass recycling blast Houston contract By Jared Paben, Resource Recycling March 22, 2016 When the two-year agreement was announced on March 11, Strategic Materials was just "days away" from signing a deal with Anheuser-Busch that would have led the secondary glass processor to install an optical sortation unit in Houston at a cost of $8 million, Bucey said. It would have enabled bottleto-bottle recycling at an existing plant. Houston to expand glass recycling Jun 30, 2016, 8:28am CDT Houston is expanding options for glass recycling after a renegotiated contract removed glass from curbside pickup earlier this year. Several additional glass recycling dropoff points are planned to open around the Houston area, according to a press release from Mayor Sylvester Turner. The city is working with Strategic Materials Inc. to create the drop-off points. Texas markets have been strong and growing. Markets have been consuming all glass processed in state and glass continues to be imported into Texas. SMI looking to expand capacity within Texas. New markets emerging that should help West Texas glass markets.

9 Limited outlets, color changes HOT SPOTS Limited outlets, color changes, and specification changes has resulted in imbalance New capacity under construction Low cullet usage rates & Inconsistent use New Opportunity Hot spots, often have, no fiberglass markets/plants and inconsistent usage rates by container industry. Efforts are underway to develop new markets and/or export material to resolve market issues. 9

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