Page 12 - Packaging News magazine November-December 2022

INDUSTRY INSIGHT
Groundswell of support for REDcycle
In the wake of the announcement of the suspension of soft plastics recycling program REDcycle, the packaging industry has been highly vocal in its support for founder Liz Kasell and REDcycle, as stakeholders work to find solutions to the crisis. Lindy Hughson reports.
REDcycle founder Liz Kasell: Let’s not waste this crisis
the short term, such as export. While this is not ideal, onshore downstream manufacturers such as Close the Loop are about seven months away from having their line back up and running.”
That said, Kasell noted that REDcycle is Close the Loop’s most important supply partner and there is significant pent-up demand for its TonerPlas product.
Another important product that is expected will be in production at scale by mid-2023 is Polyrok, a concrete aggregate replacement product containing over 90 per cent recycled soft plastics.
“The most important market sector for these two manufactur- ers is local and state government,” Kasell said. “We would like to see procurement mandates that specify recycled content from a domestic source. There seems to be a loophole where recycled content sourced offshore can be counted as ‘buying recycled’. While that is true, buying recy- cled content products sourced offshore doesn’t impact recycling rates here or support a domestic circular economy.”
In many ways this challenge highlights that the transition to an Australian circular economy for plastic is starting to happen. Kassel said: “We have growing sup- ply, more soft plastic diverted from landfill. Now we need to accelerate the downstream processing tech- nologies so we can extract the value from this resource.”
PKN’S ONLINE HEADLINE ‘Industry reels at news of REDcycle’s suspension’ captured the
sense of how the news landed. Reel we did. For many, it was a shock, a disappointment, a pain- ful setback. It was also a catalyst for dialogue. Since the news broke, social media has lit up with com- mentary and the conversation, and debate, continues.
Rising to the top of the media maelstrom, though, is an almost unanimous outpouring of support for Liz Kasell and the REDcycle team from brand owners, sup- pliers, industry organisations, recyclers, and consumers.
Several key messages have emerged. This is not a failing on the part of REDcycle. The col- lection side of the recycling programme has worked and con- sumer uptake has burgeoned. The lack of recycling infrastructure, compounded by a lack of market demand for products using recy- cled soft plastic, is not REDcycle’s responsibility – it’s a whole of value chain responsibility.
To frame this report, REDcycle has asked PKN to make it clear that the stockpiling was not a ‘secret cover-up’ – the decision to hold soft plastic in storage was not for commercial gain, but rather it was a “stop gap until the soft plastics recycling industry is operational again”. By this, REDcycle is refer- ring in part to its largest user, Close The Loop, whose soft plastics recy- cling line is out of action due to a
fire at the plant earlier this year, and which will only be onstream by July next year. The good news is it will come back with three times the previous capacity, as confirmed by CEO of Close the Loop Group, Joe Foster, who has reinforced the group’s commitment to use REDcycle material as a feedstock for its TonerPlas and rFlex.
Central to the program’s crisis is the dearth of recycling organisa- tions able to process soft plastic in Australia. When REDcycle’s recy- cling partners said they could no longer accept material due to over- supply, REDcycle had two options
This is a pivotal moment for all stakeholders to play a greater role and accelerate the solutions...
LIZ KASELL, FOUNDER, REDCYCLE
It could stop collection, which would have meant telling consum- ers to put all soft plastics in the landfill bin, or store it. REDcycle made the decision to store the materials at its own expense, with the intention to send it for recycling as soon as the facility becomes operational again.
Despite negative publicity around the idea of stockpiling of
waste, the backing for REDcycle has not waned. Kasell told PKN the groundswell of support has been the most “incredible outcome” of this challenge.
“It has meant so much to our team on a personal level and only reinforces how important REDcycle is to Australians. This is a pivotal moment for all stake- holders to play a greater role and accelerate the solutions that we have been working tirelessly to put in place.”
NEXT STEPS FOR REDCYCLE
Kasell said REDcycle’s focus now is to work with industry and gov- ernment to unblock the pipeline.
“We want to see the program resume as quickly as possible, but it requires capacity to be made available downstream. This is a circular system – supply and demand must be in balance.”
Kasell says the crisis for REDcycle occurred when sup- ply increased more than 350 per cent during the pandemic period but demand in end market pull- through fell 95 per cent. This created a critical imbalance in the REDcycle pipeline that had been well managed for ten years.
Top of mind for many is the burning question, what is going to happen in the short term to the soft plastics stockpile?
Kasell said, “We have approached government, both state and federal, and our industry partners to under- stand what options are available in
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