Final Report

Glass crushers in hospitality –

optimising for re-melt uses

This report assesses the market penetration of under-the-counter bottle crushers since 2009, and investigates the potential to implement small design changes to these crushers so that a larger proportion of the crushed glass could be optically sorted by UK glass processors.

Project code: IMT004 Research date: October to March 2012 Date: September 2012

WRAP’s vision is a world without waste, where resources are used sustainably. We work with businesses, individuals and communities to help them reap the benefits of reducing waste, developing sustainable products and using resources in an efficient way. Find out more at www.wrap.org.uk Document reference: [e.g. WRAP, 2006, Report Name (WRAP Project TYR009-19. Report prepared by…..Banbury, WRAP]

Written by: Katherine Bojczuk MSc

Front cover photography: Mixed glass at hospitality site

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Glass crushers in hospitality – optimising for re-melt uses 1

Executive summary

Glass recycling rates have increased significantly during the past 10 years. However, the amount of glass recycled back into container glass in the UK has declined in absolute terms in recent years. There is a risk that an increase in the use of bottle crushers in the hospitality sector may cause glass to be sent for aggregate uses, due to the challenges of sorting crushed glass.1 This is of particular concern as the use of recycled cullet in the manufacture of container glass results in a high potential CO2 saving, which is lost if glass is instead recycled as aggregate. This report assesses the market penetration of under-the-counter bottle crushers since 2009. It also investigates the potential to implement small design changes to these crushers so that a larger proportion of the crushed glass could be optically sorted by UK glass processors. In discussion with a number of the original equipment manufacturers (OEMs) it emerged that the demand for equipment is not growing as quickly as predicted in a previous report into the use of bottle crushers2. It was also clear that a redesign of their equipment would not be feasible or value-adding to their business case when selling these crushers. However one OEM has modified its machine by changing the number and speed of the rotating hammers which crush the bottles. The aim of this work was to increase the size of glass pieces produced. Even so, there is little control over this process or the size of the resulting glass particles. Difficulties in arranging collections of crushed glass were highlighted by crusher suppliers and glass collectors as a primary barrier for further sales of glass crushers in the hospitality sector During follow-up interviews with specialist glass collection businesses, with the aim of gaining an insight into how crushed glass impacts the glass recycling process, it was possible to develop a clearer picture of the glass market as a whole; in particular, how collectors decide whether glass is to go to aggregate or re-melt. The business case made by a number of OEMs to the hospitality sector is based on a cost saving due to a reduced number of bin lifts. Often, calculated savings given to the hospitality sector for the use of glass crushers assume that the glass collection contractor will charge a standard price per bin uplift, whether or not the glass is crushed. However, for all but one of the OEMs, the crushing ratio is 5:1, so crushing the glass increases the weight of the container five-fold. None of the glass collection companies we interviewed considered crushed glass and whole bottles to be equivalent waste materials. Most had policies in place to dissuade customers from filling their containers with crushed glass, and one said that it adds a £25 surcharge per lift to the normal £4 to £8 lift charge. In another instance, the charge for collection of crushed glass was almost double that for the collection of whole bottles. Currently, it is estimated that no more than 1% of the total UK glass collected is processed through one of the 300 installed glass crusher machines.3 Interest in glass crushers from the hospitality sector may occasionally increase in response to increasing collection prices caused by lower Packaging Recovery Note values for glass, lower prices for mixed colour glass

1 WRAP (2010) ‘Hospitality Sector Glass Compactor Trials’ 2 WRAP (2010) ‘Hospitality Sector Glass Compactor Trials’ 3 WRAP (2011) ‘Small scale trial to assess the potential for crushed glass derived from licensed premises to be processed to a quality suitable for re-melt applications’

Glass crushers in hospitality – optimising for re-melt uses 2

and/or higher landfill gate fees. The introduction of the hospitality industry agreement by WRAP in June 2012 may also have some impact. Businesses signing up to this agreement may want to explore ways of increasing the amount of packaging waste they recycle and this may result in an increase in the use of crusher machines. Nevertheless, it is evident that the crusher business case implies that the promised financial savings will only occur when a glass collector is willing to collect the glass at an equivalent price to whole bottles, irrespective of the increased weight of glass in the containers. We recommend that WRAP take no further actions on the development of glass crushers in the hospitality sector, but consider briefly reviewing market developments in two to three years.

Glass crushers in hospitality – optimising for re-melt uses 3

Contents

1.0 Background .................................................................................................. 4 1.1 Environmental advantages .......................................................................... 5 1.2 Prices ........................................................................................................ 5

2.0 Methodology ................................................................................................. 6 3.0 Glass crushers .............................................................................................. 7

3.1 Crusher machines ...................................................................................... 7 3.2 Market structure ........................................................................................ 7 3.3 Original equipment manufacturers (OEMs) ................................................... 7

3.3.1 Business models .............................................................................. 8 3.4 Benefits of crusher use for hospitality businesses .......................................... 9 3.5 Potential growth in demand for crushers ...................................................... 9

3.5.1 Demand from the hospitality sector ................................................... 9 3.5.2 The hospitality sector voluntary agreement ...................................... 10

3.6 Glass collectors ........................................................................................ 10 3.6.1 Collection of crushed glass .............................................................. 10 3.6.2 Payback period .............................................................................. 11

3.7 Integration of collection with aggregate use ............................................... 12 3.8 Markets for collected glass ........................................................................ 12 3.9 Contamination ......................................................................................... 14 3.10 Deciding where to send collected glass ...................................................... 15

4.0 Conclusions and recommendations ............................................................ 16 Appendix A ........................................................................................................... 17 1.0 Glass crusher suppliers ............................................................................... 17 2.0 Glass collection and reprocessing ............................................................... 18

Glossary

Defra Department for Environment, Food and Rural Affairs OEM Original equipment manufacturer PRN Packaging recovery note

4

1.0 Background Glass recycling rates have increased in line with annual targets set by the Government for all packaging materials - including glass. However, the proportion of this recycled glass directed into closed loop use in container manufacture has declined in absolute terms over the past few years. In September 2011, WRAP commissioned this project to investigate the current market for glass compactor units (a.k.a. ‘bottle crushers’) within the hospitality sector and to investigate the possibilities for redesigning crushers so that cullet (crushed glass) produced could be used in the manufacture of new glass bottles (re-melt). In the UK, the total glass waste arising in the hospitality sector has been estimated to be in excess of 500,000 tonnes per year, approximately 21% of which is being recycled. Increasingly, the glass collected from the hospitality sector is mixed colour (ie green, amber and flint glass mixed together), with only an estimated 15% of glass colour-separated at source.4 To be used in re-melt, the mixed colour glass needs to be separated into the three colours by a glass processor using an optical sorting process. Figure 1 highlights the increase in the relative amount of glass going to aggregate (included in ‘alternative’ uses), in comparison to the decrease - since 2006 - of glass going to container re-melt. It should be noted, however, that this graph is not specific to the hospitality sector, but rather representative of all glass by end use.

Figure 1 Volumes of glass by end use

Source: Adapted from British Glass Manufacturers' Confederation (2010)

One explanation for the increase in the use of ‘alternative’ end uses of glass, which includes aggregates, is thought to be the increase in collections of mixed dry recyclables which can make glass harder extract. The low value of glass may also make it uneconomic to transport any distance to processors. The adoption of under-counter glass crusher units by some of the 200,000 licensed hospitality premises in the UK5 may have also had an impact, albeit small.

4 WRAP (2010) ‘Hospitality Sector Glass Compactor Trials’

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A recent WRAP trial to process a sample load of crushed glass at a glass processing facility found that the feedstock contained 30% fines; loads with this level of fines would normally be rejected by glass processors as the fines stick to the larger glass pieces and reduce the efficiency of the colour sorting process. However, for the trial the sample load was processed. The fines were screened, where possible, from the glass feedstock prior to colour sorting and were sent to aggregate. 1.1 Environmental advantages The use of recycled cullet in the manufacture of container glass results in a high potential CO2 saving which is not seen if the glass is used for aggregate. Table 1 gives the CO2 emission savings per tonne of glass for each of these end uses.

Table 1 CO2 emission saving from different recycled glass applications

Glass application CO2 emission savings kg/tonne of recycled glass

Glass containers 314

Aggregates -2

Source: Enviros, Glass Recycling- Life cycle carbon dioxide emissions, 2003

1.2 Prices Figure 2 shows the price per tonne of container glass (bottles and jars) from February 2011 to February 2012. Although the prices remain relatively stable, the higher value of clear (flint) and amber glass over other glass colours is apparent. The lower value of mixed glass reflects the need for colour sorting if cullet is to be used for re-melt.

Figure 2 Glass container prices - £ per tonne (2011-2012)

Source: http://www.wrap.org.uk/recycling_industry/market_information/market_knowledge_portal/materials_markets/glass.html#recovglass There are approximately fifty locations across the UK where cullet collected for recycling is manufactured into aggregates: the gate fee (price that the glass collector is required to pay to drop off the glass varies) between nil and £5 per tonne.6

6 Telephone conversation with Andrew Bates, Lafarge

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2.0 Methodology

There are approximately 200,000 licensed hospitality premises in the UK, and fewer than 300 glass compactor units are estimated to be in use.7 In November 2011 contact was made with all of original equipment manufacturers (OEMs) listed in Section 3.3, as identified from a previous WRAP report Hospitality Sector Glass Compactor Trials, 2010. The initial aim was to discuss equipment sales and to invite the OEMs to meet to discuss design adaptations that would reduce the proportion of glass that could not be reused in re-melt. As a result of the phone calls made it became clear that the OEMs were not keen to discuss sales or design adaptations and only two meetings were held, in January and March 2012. At these meetings, it was possible to view one of the glass crushers and develop some understanding of its operation. The mechanism was based on a rotating hammer design where the efficiency for crushing depends on the number of hammers and the speed at which they rotate. The meetings and the telephone conversations with the OEMs suggested that the market opportunities for glass crushers were not growing rapidly and as the OEMs were not interested in modifying their crushers, the project then focussed on the next stage of speaking to waste collectors to the hospitality sector. Oakdene Hollins designed a structured telephone conversation with this sector providing some specific market knowledge concerning Defra’s proposals for capped glass to aggregate Packaging Recovery Note (PRNs) and proposing that glass crushers might be supplied by the collectors. These calls, which took place during March 2012, proved successful in gaining market insight into glass collections. Glass collectors were identified through the WRAP Glass Collection Directory.8 Companies who only collect whole bottles, or who do not collect from the hospitality sector were not included. Of those remaining, 20 were randomly selected, resulting in nine structured telephone conversations with those available to participate. The results of the meetings and telephone conversations with specialist glass collectors and waste management companies are provided in Section 3.0.

7 WRAP (2011) ‘Small scale trial to assess the potential for crushed glass derived from licensed premises to be processed to a quality suitable for re-melt applications’ 8 http://www.wrap.org.uk/content/glass-collection-directory

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3.0 Glass crushers

3.1 Crusher machines Where crusher machines were seen in operation, the glass fragments produced were not of a uniform size and there appeared to be a considerable quantity of fines in the resulting glass. From a technical perspective, there was also little apparent scope in adjustment of the mechanism. The crusher machine designs are generally straightforward, consisting of either a rotating ‘blade’ or hammers which crush the bottle as it is fed through the chute into the machine. Through discussion with OEMs and observing the crusher machine operation, there appears to be very little that can be done to the design in order to control the size of fragments produced. According to one manufacturer, the main factor controlling the fragment size is the speed of the rotor; a faster blade is more likely to result in smaller fragments. However, if the speed is reduced too far, the machine cannot crush the heavier weight bottles and may jam the machine. Having fewer rotors causes the same problem. One of the OEMs had made these adjustments to the crusher machines (minimised the number of hammers and altered the revolution speed) in order to produce larger glass pieces. However, the crusher still produced fragment pieces that were very varied in size and we were unable to visually assess whether the change had improved the potential for the cullet to be sorted for re-melt. 3.2 Market structure

It has been estimated that, assuming 300 glass compactor machines are in use across the UK, an average of 7,200 tonnes per annum of crushed glass would be produced. Assuming an average of 620,000 tonnes per annum of total glass waste arising from licensed retail establishments, it can be estimated that approximately 1% of glass from the hospitality sector is currently processed by on-site glass compactors.4 Figure 3 identifies the market process for glass crushers, from the OEM to the aggregate or closed-loop recycling processor.

Figure 3 The market structure for bottle crushers and the route for recycling glass

The focus of this report is on the crusher manufacturers and suppliers, glass collectors and processors and the relationships between these organisations. 3.3 Original equipment manufacturers (OEMs) Five manufacturers are known to be providing machines directly to the hospitality sector on a sale, lease or rental basis and to intermediate suppliers specialising in services to the

OEM Crusher suppliers

Hospitality sector

Glass collectors Glass processors A. Aggregate

B. Container re-melt

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hospitality sector. Several companies specialise in delivering machines and offering collection and consultation services to their local region (north of England, central and south west Scotland, London and the south east) while others offer their services and products on a national or international scale. The following companies were identified as OEMs for bottle crushers:9 (Details can be found in Appendix A)

Bottleworks Ltd;

Ekko Glass Recycling;

GlassVac (crushers previously sold by Krystaline);

Smash and Grab Glass Recycling; and

PEL Recycling Equipment.

A 2010 report trialling glass compactors in the hospitality sector estimated that the glass crusher manufacturing market was dominated by four key players: Bottleworks Ltd, Ekko Glass Recycling, GlassVac and Smash and Grab Glass Recycling. Of an estimated 300 glass crushers in use in the hospitality sector in the UK, around 250 are thought to have been supplied by these manufacturers. All claim to offer significant savings to the hospitality sector by crushing glass containers to a 5:1 ratio, with GlassVac being the exception. This is mainly due to the method of compaction; glass is ‘imploded’ rather than crushed which produces small glass pieces with no sharp edges. GlassVac compactors claim to crush glass to an estimated 8:1 ratio.10 In addition to these crusher manufacturers there are a number of intermediaries that supply the glass crushing machines. In general, glass crushers are not the core business of these intermediate suppliers; most concentrate on the supply of other waste management equipment such as compactors, balers, skips and general machinery. In addition there are a few larger-scale commercial glass compactor machines in use with varying capacities and functions that are outside the scope of this study. There was a varied response as to the overall growth of the glass crusher market. The biggest barrier to the uptake of these machines, as explained in Section Error! Reference source not found., is the unwillingness of glass collectors to accept crushed glass. This was a point raised by both the crusher suppliers and the collection companies. It should be noted, however, that an alternative model in which both the crusher machine is provided, and crushed glass collected, by the same operator removes this issue. Recent reporting in the press of this operating model, suggests that uptake of these package types has seen a recent increase in the hospitality sector.11 However this increase is still within the context of a largely static overall market. Most respondents have not seen increased demand or interest in glass crushing machines. 3.3.1 Business models Through discussion with crusher manufacturers and suppliers it is evident that there are three predominant business models through which glass crushers are supplied to the UK hospitality sector:

i. ‘Off the shelf’: the crusher can be sold ‘as is’ to the pub or hotel etc. in question. Once

the purchase has been made there is generally minimal contact between the purchaser

9 NB: Although these companies are the original manufacturers of bottle crushers, a number provide other compaction equipment or waste management services. 10 WRAP (2010) ‘Hospitality sector glass compactor trials’ 11 http://www.bighospitality.co.uk/New-Products/Glass-crusher-to-be-rolled-out-to-more-pubs-restaurants-and-hotels-following-

trial-success

9

and supplier, although some crusher suppliers will offer further maintenance services at

an additional charge.

ii. Leasing model: it is also possible for the crusher to be leased to the end user. This

involves a regular fee paid to the crusher supplier and generally includes regular

maintenance. This does not include collection of crushed glass.

iii. Total waste management: the selling or leasing of the machine with additional services

including, most importantly, crushed glass collection.

Although these are the main business models, many of the crusher manufacturers contacted offered a variety of services and tailored packages to suit the individual needs of the end user. Training in the use of the crusher is generally a part of provision of the machine in all of the models outlined above. Where suppliers both crush and collect the glass, this is either done within a single company or sub-contracted to a waste management organisation. 3.4 Benefits of crusher use for hospitality businesses Benefits of using glass crushers in the hospitality sector include;

A reduction in glass disposal cost; Typically, glass collection is charged by the number

of uplifts or bins to be collected and compacting glass means fewer bins are filled and

thus fewer uplifts are required.

Improved storage space.

Less staff time used to empty bins and transport empty bottles.12

The hospitality sector is increasingly aware of sustainability issues, and glass crushers are often sold on the premise that the crushed glass can be treated as a separate waste stream, avoiding being taken to landfill, and ultimately being recycled. However, a previous study13 found that the hospitality industry shows little preference as to whether glass gets recycled to aggregate use or closed loop recycling. This may be due to lack of awareness of the benefits of the closed loop approach, in particular the carbon benefits as shown in Table 1. 3.5 Potential growth in demand for crushers As outlined in a 2010 WRAP report assessing the potential of glass crushers to produce re-melt quality glass14, it was predicted that the glass crusher market was likely to see growth in the medium term. This was predominately based on the interest of at least two national pub and restaurant chains. Neither of these companies decided to invest in glass crushers. The price for mixed colour glass has fallen since 2010. A reduced price for collected mixed glass will increase the price charged for glass collection. According to the glass collectors interviewed, lift fees are on average £4 to £8 excluding rental costs for bins. Even a small increase in these collection costs further improve the potential savings for the hospitality sector from installing a glass crusher 3.5.1 Demand from the hospitality sector Glass crusher suppliers hold a range of opinions with regard to the current growth potential of the market. Overall, it does not appear that there is currently a large demand for glass

12 WRAP (2010) ‘Hospitality sector glass compactor trials’ 13 WRAP (2011) ‘Small scale trial to assess the potential for crushed glass derived from licensed premises to be processed to a quality suitable for re-melt applications’ 14 WRAP (2010) ‘Hospitality sector glass compactor trials’

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crushing equipment from the hospitality sector, especially when compared to other forms of material handling. For example, one company, providing a range of waste compaction equipment, estimated that only 2% of enquiries were regarding glass crushers15 This view is supported by a further suggestion that, over the past few years (i.e. in a time of static economic growth), businesses have been less willing to invest in high cost capital items. This is not to say, however, that there is no interest reported in the glass crusher market. It was suggested by other interviewees that there is a reasonable amount of interest in glass crushing machinery from the hospitality sector, with many viewing it as a worthwhile, cost saving piece of machinery. This interest may not, however, result in a large increase in sales of crushers. Although there may be interest amongst potential investors, there are also a number of technical barriers to completing purchases of the equipment, and handling the crushed glass. Section Error! Reference source not found. further outlines these barriers, supplemented with responses from glass crusher suppliers. 3.5.2 The hospitality sector voluntary agreement16 WRAP’s hospitality industry agreement, to be launched in June 2012, will look at food and packaging waste reduction and prevention. Hospitality businesses signing up to this agreement will be encouraged to explore ways of increasing the amount of packaging waste they recycle, including glass. This could have an impact on sales of glass crushers. 3.6 Glass collectors The most frequently cited reason for not progressing from interest to sale is the difficulty in arranging glass collection, both logistically and in terms of negotiating uplift prices. Further barriers include maintenance, health and safety, and staff training issues. There have also been suggestions - although primarily from the glass collectors, rather than crusher suppliers - that maintenance issues with crushers can act as a barrier to completed sales. One supplier suggested that the blades of some crushers need fixing “every three months,” that replacement parts are hard to obtain and that many potential customers have “less interest once this has been explained”.17 It has also been estimated that the blades of some crusher machines can cost around £50 to replace. However, there are a number of different types of contracts available with glass crushers some of which include maintenance. Crushers also come in various designs. It was suggested that crushers with rotors or hammers, rather than blades, are more hard wearing and parts should not need replacing for several years.18 3.6.1 Collection of crushed glass Of the crusher suppliers contacted, only two also offered to collect crushed glass while the remainder do not offer this service. One supplier suggested that although there is a “lot of interest” in glass crushers, the main problem is “finding someone to take it [the crushed glass] away”.19 This is a view shared by other suppliers who again state that the logistics of who collects the glass presents the biggest barrier to further sales. Of those suppliers that do not collect the glass themselves, negotiating a contract (on behalf of the purchaser, with a glass collector) is often part of the service. There is a majority view amongst the suppliers that there is an unwillingness to collect crushed glass, and many

15 Glass crusher supplier, UK-wide, waste handling equipment business 16 http://www.wrap.org.uk/content/hospitality-and-food-service-wraps-work-0 17 Glass crusher supplier and collector, South East, owner-operator 18 Glass crusher supplier, London 19 Glass crusher supplier, UK-wide, commercial and industrial equipment business

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collection services strongly prefer the collection of whole bottles - much like kerb-side or bottle bank collection schemes. In one instance it was suggested that there was little resistance from collectors to crushed glass. However, in this case, the price of collection was significantly higher than that for whole bottles (see section 3.6.2). Those crusher suppliers that don’t collect glass, often either approach glass collectors or help to facilitate conversation between the hospitality sector and the glass collectors. Furthermore, there are practical issues associated with the collection of crushed glass. One supplier commented that glass collectors are becoming increasingly aware that the bins they are lifting are much heavier when containing crushed glass instead of whole bottles. This has implications for contract negotiation and relationships not only between the machine supplier and collector, but also between the hospitality business and collector. This is an opinion shared by another supplier20 (who, it should be noted, does collect their own glass), who feels that glass crushers are often sold on “false pretences” as the bins may become too heavy to be lifted. In order to prevent the problem in this instance, the business marks a capacity line inside the bins that are used to collect crushed glass, and penalises businesses £25 per bin when this level is exceeded. It appears that while market penetration is at its current level, many collectors do not notice when a customer in the hospitality sector begins using a glass crusher. The financial savings begin to accrue to the customer until it is noticed and the collector objects to the abuse of the contract terms. From this point onwards the savings are either greatly reduced or new costs are imposed on the customer who then needs to find a new glass collector. 3.6.2 Payback period The table below highlights the claimed pay-back period for these crusher machines, and how sensitive the length of this pay-back period is to changes in the uplift price of bins. The price of the crusher has been estimated to be around £2,15021-£3,00022 - a figure stated by several manufacturers - and the uplift prices range from £4 to £8. These figures are in line with a number of council charges for bin uplifts, although it should be noted that prices are likely to increase with increased landfill tax, decreased PRN value, lower mixed glass prices and increased fuel prices.

Table 2 Glass disposal costs Lifts per week Annual saving @

uncrushed crushed £4 £6 £8

5 1 - £1,200 £1,600

10 2 £1,600 £2,400 £3,200

15 3 £2,400 £3,600 - Source: Hospitality sector glass compactor trials (WRAP, 2010)

Table 3 Payback period calculation Payback period (years)

£4 £6 £8

- 2.5 2

2 1.3 0.9

1.3 0.8 -

20 Glass crusher supplier and collector, South East, owner-operator 21 Glass crusher supplier, London 22 Glass crusher supplier, Yorkshire

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The claimed savings rely heavily on the glass collector not increasing collection costs once the glass is crushed and bins being weigh up to five times more. When a larger number of bins on a round become five times heavier, the efficiency of the vehicle would be undermined as the number of lifts per round is limited by the axle weight on the vehicle. In one case, the cost of collecting crushed glass was estimated to be around £7-£8 a lift, compared with the cost of whole bottle collection at £2.50-£3 a lift. This reflects a price increase of almost 100% between collections of crushed and whole bottles, increasing the payback period of the original financial outlay for the glass crusher. Although the claimed savings are a key factor in the sale of these machines, the other practical incentive - reducing the need for large storage areas for empty whole bottles - has been highlighted by crusher suppliers as the primary reason for interest in the crushers. One of the

suppliers claimed that “storage space is the main, only driver”23 as the cost of the machinery is quite high and the only financial benefit is a reduction in the number of bin uplifts. 3.7 Integration of collection with aggregate use Waste management companies have for many decades leased equipment to customers as part of their service. This includes not only various bins but also compactor equipment. It is possible that a glass collection specialist could lease equipment to customers in the hospitality sector and then supply the crushed glass to an aggregate supplier. Andrew Bates at Lafarge reported that this proposal was first discussed “fourteen years ago when I first met with Geoff Brown from Pure 8”. He observed that in the intervening 14 years “a couple of further conversations have occurred but otherwise nothing has happened”. This view was further reinforced by our interviews with glass collection and crusher suppliers. It is clear that a number of crusher suppliers are interested in developing a more integrated offering where glass collection as an additional service is part of the business model. This is apparent as a number of glass collectors have been approached at least once in the past year by crusher manufacturers. There are a number of examples of this model of providing both the glass crusher and a crushed glass collection service.24 In another case, however, a collector has an informal partnership with a crusher supplier although, as later discussed, they have mixed views on the success of this model which does not constitute a significant portion of their business. As suggested both by the previous WRAP report25 and anecdotally in discussion with collectors, crushed glass is not collected separately from other waste glass sources; the volumes of crushed glass are currently not sufficient to allow for separate collections. Because of this, it is difficult for the collectors to gauge the proportion of crushed glass from the hospitality sector, although it is not felt that this amount is increasing noticeably. Several of the glass collectors were clear that glass was seen as a “waste product, [that is] not easy to get rid of”.26 Some said that the value of the glass is destroyed once the glass is crushed.27 3.8 Markets for collected glass For glass collectors there is a clear financial incentive to prioritise collection of glass that can be sent to container re-melt, even to maintain the option to do so when it is currently taken

23 Glass crusher supplier, UK-wide, waste handling equipment sales 24 Predominantly Ekko Glass and SWR Waste Management Services 25 WRAP (2010) ‘Hospitality sector glass compactor trials’ 26 Glass collector, UK-wide 27 Glass collector, UK-wide, large-scale waste management services

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to aggregate use. Glass suitable for this purpose has a considerably higher financial value by weight than small glass pieces often produced through the use of glass crushers. One major national collector estimated that whole glass could attract up to £50 per tonne rather than paying “£3 to £5” per tonne to send to aggregate use.28 The same national collector reported that a lorry can haul a greater value (financially) of whole bottles, when carrying at capacity, than it can glass that is only suitable for aggregate. A glass collector is limited to collecting the capacity weight of the vehicle regardless of the type of glass that is being transported.29 It was suggested by one of the larger glass processors that, if more glass were to be delivered to them crushed, a gate fee would have to be charged to the customers as little value could be gained from the glass. Recycling facilities are not likely to require crushed glass, other than to make aggregate, and so the price ratio in comparison to glass for re-melt is unlikely to change. The scenarios described above make the assumption that glass crusher produces glass that is predominantly suitable for aggregate only. The proportion of crushed glass that could be suitable for re-melt is a disputed issue. Crushed glass can be of varying sizes but, as highlighted in the WRAP report30, much of the crushed glass is below a size that can be colour sorted and used for container re-melt. The ability to sort the glass is also reliant on dry weather conditions; as glass gets wet, the fines further adhere to glass pieces. Furthermore there appears to be little control over the size of glass pieces produced in the crushing process (see section 3.1). As long as the crushed glass can be optically sorted it can be diverted from use as aggregate; several of the collection companies suggest that a glass particle size of 50-70mm would be optimum for this sorting process. Generally, glass of less than 12mm in size is not sorted. Machines and other technologies are available for colour sorting down to a particle size of 5mm but, as highlighted by one glass collector, the process is prohibitively expensive. Most of the glass collected by those contacted is diverted to a closed loop recycling process where possible. However, the larger collection organisations contacted did outline that, when it is not possible to divert collected glass to these processes, it is used as aggregate. This was described by one collector31 as a "landfill mitigation exercise” as this enables the collector to obtain (minimal) revenue from the glass rather than paying landfill taxes to dispose of it. One collection organisation that differs sends most of the glass it collects to aggregate, but prefers not to collect crushed glass. Although linked to a glass crusher supplier, the company had "mixed experiences" of dealing with crushed glass and cited as disincentives to collecting crushed glass the health and safety issues associated with lifting heavier bins and the fact that crushed glass can damage the "plates in dust carts”.32 Andrew Bates at Lafarge expressed surprise that any separately collected glass from the hospitality sector was being directed to aggregate use. In this instance the glass handled is not only from the hospitality sector, but also comes via transfer station or MRFs. It was reported that most of the glass Lafarge handles is contaminated, and only occasionally does

28 Estimates from glass collector, UK-wide, large-scale waste management services 29 Glass collector, UK-wide, large-scale waste management services 30 WRAP (2010) ‘Hospitality sector glass compactor trials’ 31 Glass collector, UK-wide, large-scale waste management services 32 Glass collector, North London, owner operator

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Lafarge see loads that might otherwise have been suitable for re-melt. “The price differential is large enough to give most collectors a signal to send it to re-melt.” However, we did speak to collectors who - for reasons of vehicle efficiency - deliver loads to aggregate yards instead of their own bulking yard and then return to their collection rounds. In these cases, the cost of a driver and a vehicle is compared to the difference in value of the loads, and past experience with contamination levels will inform these decisions. It should be noted that, unlike for glass going to container re-melt, aggregate producers are happy to accept glass that is crushed or whole. Contamination is the main issue when deciding whether or not a load is to be accepted for aggregate uses (see Section 3.9 below on contamination). If the quantity of crushed glass from the hospitality sector were to increase, collectors might have to adapt their current business models, many of which are focused on collecting glass for higher value re-melt purposes. 3.9 Contamination Glass contamination can refer either to colour contamination (i.e. colours mixed in with colour separated glass) or to other contaminants in the glass mix. Although possible, no instances have been found where crushed glass is collected as separate colour streams. Therefore colour contamination is not an issue; all glass is assumed to be collected as mixed. ‘Contamination’ in crushed glass from the hospitality sector refers to other contaminants, such as bottle caps, labels, plastics, ceramics etc. that may be mixed in with the crushed glass, or have been put through the glass crusher. The level of contamination in glass collected from the hospitality sector has been raised as an issue by crusher manufacturers and glass collectors. One collector, who transports glass directly from hospitality businesses to be processed as aggregate, finds that the aggregate company may turn away glass if it is ‘too’ contaminated (e.g. mixed in with other materials such as plastic bags, a common contaminant in this instance). As a result, the drivers of the glass collecting vehicles are trained, on collection, to pick out larger non-glass items. If contamination levels of the glass are too high, an additional charge is sometimes levied by the collector on the hospitality business as an incentive to keep glass separate from other waste streams. Contamination of glass from the hospitality sector is an issue, but there is little evidence to suggest that rates of contamination are changing. The same can be said for the colour mix of glass. This will vary depending on the location of the glass collection and even the time of year. Of the estimated 619,800 tonnes of waste glass arising in the UK hospitality sector in 2008, the majority (57%) is flint glass, with 28% green glass and 15% amber glass, as outlined in Table 4.

Table 4 Estimated colour split of glass within the UK hospitality sector (2008) Total waste glass arisings

(tonnes) Estimated colour split of waste glass arisings

(tonnes)

Flint Amber Green

% Tonnes % Tonnes % Tonnes

619,800 57 355,624 15 94,871 28 169,306 Source: WRAP (2008) Hospitality glass collection

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3.10 Deciding where to send collected glass Following discussions with glass collectors, there appears to be a large number of variables that influence where glass is collected from, what form it is collected in and where it is being sent to be processed. These variables include:

The price differential between glass to aggregate and to re-melt: If, as

estimated, the value differential between glass for re-melt and crushed glass for

aggregate is large, a vehicle filled to capacity with whole bottles will attain a higher value

than a vehicle filled to capacity with crushed glass suitable only for aggregate. Glass sent

to aggregate is estimated to be worth £4 per tonne, while glass to re-melt is estimated to

have a value of around £20 per tonne; a price differential of £16 per tonne.

The distance between the glass collection and the reprocessor: It appears that

there is a clear price benefit to taking glass to re-melt rather than to aggregate.

However, there are a number of other factors involved in this decision. For example, the

UK container industry currently consists of only six manufacturers of container glass,

producing a total of 2.3 million tonnes (2010). Meanwhile, there are an estimated 50

sites that produce aggregate. Conversations with glass collectors indicate that the glass

being taken direct to aggregate use is predominantly from local glass collectors. This

seems logical; the value of glass to aggregate is low and so the revenue gained would be

outweighed if transport costs were high. The decision as to the end use of glass is

therefore also dependent on the proximity of glass reprocessing facilities.

Hence it is possible to calculate the greatest distance that a glass collector would travel to take glass to re-melt rather than aggregate before the higher value obtained from this end use is eroded by transport costs. Assumptions: Based on a 65 cubic yard ‘Crane’ bulker carrying 28 tonnes of glass, the cost per mile for a glass collection vehicle is estimated to be around £1.70 per mile. This cost per mile figure has been calculated from previous 2010 studies33, and includes factors such as fuel, fixed vehicle costs and variable costs such as maintenance. Calculation: The calculation below demonstrates the maximum distance a glass collector would travel to take glass to re-melt rather than aggregate. This distance is essentially calculated using a break-even point; the distance at which the cost of transport outweighs the additional benefit (£16 per tonne) from taking glass to re-melt. Distance x cost per mile = maximum price differential x maximum tonnage per load Hence: Journey distance x 1.70 = 16 x 28 Using this calculation, it can be estimated that an approximate total distance of 130 miles (single journey) is the maximum distance past the distance to take glass to aggregate that a supplier would travel. Transporting glass any further than this would exceed the break-even point and a supplier would gain more benefit from taking glass to a local aggregate producer.

33 The cost per mile takes into account fuel inflation

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4.0 Conclusions and recommendations This study finds that there is no opportunity for engagement with the OEMs of glass crushers to redesign their equipment so that the average crushed glass particle size is increased to a size that is optically sortable. To do so would undermine their business case when trying to sell equipment to the hospitality sector, a sale based predominantly on crushing bottles to as small a size as possible to reduce storage space and bin uplift costs. However it should be noted that one OEM has modified their equipment to allow for some adaptation of the size of particles produced. Even so, there is a limit to this, and it does not appear that there is much control over the crushing process and the size of these glass pieces. No evidence has been found to support the idea that the market penetration of crushers has increased dramatically. The business case on which crushers are sold relies on the waste management contractor or glass collection specialist not objecting to the extra weight in the waste container. They may object, however, and demand an increased payment or division of the crushed glass to multiple bins, also resulting in higher collection charges. This could, in turn, reduce the economic efficiency of using glass crushers and lengthen the payback period. None of the glass collectors contacted considered whole container glass and crushed glass to be equivalent waste materials. One said that they impose a surcharge of £25 per bin lift for crushed glass. The description of crushed glass as “devalued” glass further highlights the negative attitude collectors have towards crushed glass. Whilst there are periodic attempts to promote glass crushers to the hospitality sector it appears that sales efforts do not generate more than enquiry and interest. The business case is not strong, and this may explain why there are not already more than 300 units in service after more than 10 years of attempts to develop the market. Trends in bin lift prices for waste and glass appear to be in an upward direction in response to lower mixed glass prices, weaker PRN values and higher landfill gate fees. This upward trend in glass collection costs may support the sales pitch for the use of glass crushers. However, in view of the on-going price differential between mixed glass prices and aggregates of around £25 per tonne, it is not anticipated that collectors will tolerate the use of glass crushers in any but very small numbers on any collection round. The introductions of a hospitality industry agreement by WRAP in spring 2012 may however have some impact on the use of glass crushers in this sector. Businesses signing up to this agreement may want to explore ways of increasing the amount of packaging waste they recycle and this may present an opportunity for crusher manufacturers, increasing the amount of glass processed through crushers. We recommend that WRAP takes no further actions on the development of glass crushers in the hospitality sector but considers briefly reviewing market developments in two to three years’ time.

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Appendix A 1.0 Glass crusher suppliers PEL Recycling Equipment Fortis House, 160 London Road, Barking, IG11 Contact: Mr. Tommy Griffiths Tel: 0044 208 214 1354 Web: http://www.pelmfg.com Telegreen Recycling equipment 312 Archway Rd, Highgate, London, N6 5AT Contact: Mr. Gerry O’Boyle Tel: +44(0)7748 880610 Web: http://www.telegreen.co.uk/ Bottleworks Ltd Unit 19 Normanton Business Centre, Ripley Drive, Normanton, West Yorkshire, WF6 1QT Contact: Mr. Colin Waller Tel: 01924 896975 Glassvac UK Ltd

16-17 Admiral House,

Mountbatten Business Centre,

Millbrook Road East,

Southampton,

SO15 1HY

Tel: 0845 498 9543 Web: http://www.glassvac.co.uk/ Smash and Grab SWR Waste Management, Tel: 0800 035 2395 Web: http://www.smashgrab.co.uk/ Ekko Glass Crush & Collect Ekko House, 34B New Road, Ayr, Scotland, KA8 8EX

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Tel: +44 (0) 333 4567 800 Web: http://www.ekkoglass.com/ Bergmann Direct Ltd Jubilee Place, Lindum Buisness Park, Station Road, North Hykeham, Lincoln LN6 3QX Tel: 0845 226 5803 Contact: Gordon McQueen Web: http://www.bergmanndirect.co.uk/ Agritel Ltd Bryn Y Plentyn, Middleton, Oswestry, Shropshire, SY11 4LP Tel: +44 (0) 1691 671496 Contact: John Duffers Web: http://www.agritel.co.uk/ Glassical Limited 32 Stanton Drive, Pegswood, Morpeth, Northumberland NE61 6YW Tel: +44 (0)1670 505606 Contact: Gary Harland Web: http://www.glassical.co.uk/ 2.0 Glass collection and reprocessing Berryman Glass Recycling Ltd Langthwaite Business Park, South Kirkby, West Yorkshire WF9 3NR. Tel: 01977 608020 Contact: John Marley Web: http://www.berrymanglassrecycling.com/ Lafarge UK Granite House, Watermead Business Park, Syston, Leicester LE7 1PL Contact: Andrew Bates Web: http://www.lafarge.co.uk

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Viridor Ltd Great Western House, Station Approach, Taunton, Somerset, TA1 1QW Tel: 01823 721 400 Contact: Peter Eastham Web: http://www.viridor.co.uk/ J.M.E. Glass Recycling The Glass Yard, Neachells Lane, Willenhall, WV13 3SF Tel: 01902 727091 Web: http://www.jmeglassrecycling.com/ Thamesdown Recycling Kingshill Recycling Centre, Cricklade, Swindon, Wiltshire, SN6 6JR Tel: 01793 751310 Web: http://www.thamesdownrecycling.co.uk/ Harrow Waste Services Westlake Road, East Lane Business Park, East Lane, Wembley, Middlesex, HA9 7RG Tel: 0208 908 3770 Web: http://www.harrowwasteservices.co.uk/

www.wrap.org.uk/glass