Request for Expressions
of Interest
Polystyrene Foam Processing
Posted May 25, 2012
Response Deadline June 15, 2012
Request for Expressions of Interest for Polystyrene Foam Processing
Table of Contents
1. General Information………………………………………………………………………3
1.1. Introduction
1.2. The Opportunity
1.3. Purpose of the Request for Expressions of Interest
2. Instructions to Respondents…………………………………………………………….5
2.1. REOI Process Schedule
2.2. Questions or Clarification Requests
2.3. Submission Requirements
3. Target Materials & Estimated Tonnage……………………………………….………..6
3.1. PS Foam Materials to be Densified
3.2. Material Shipped by Municipal Programs & Estimated Tonnage
3.3. Contamination
4. Markets
4.1. PS Foam Markets
5. Proposals……………………………………………………………………………………7
6. Process Evaluation………………………………………………………………………. 7
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Request for Expressions of Interest for Polystyrene Foam Processing
1.
General Information
1.1.
Introduction
The Continuous Improvement Fund (CIF), Stewardship Ontario (SO) and the Canadian
Plastics Industry Association (CPIA) are jointly issuing this REOI to address the
marketing of Polystyrene Foam materials collected by municipalities in Ontario. The
REOI is open to all interested organizations interested in acquiring residential PS foam
for recycling.
The Continuous Improvement Fund (CIF) is a funding program developed through the
cooperation of the Association of Municipalities of Ontario, the City of Toronto,
Stewardship Ontario and Waste Diversion Ontario. The CIF works with municipalities to
improve the effectiveness and efficiency of municipal blue box recycling programs in
Ontario. The CIF started in 2008, has over 445 projects underway or completed and has
disseminated over $30 million in funding to support its mandate. More information about
the CIF can be viewed at www.wdo.ca/CIF.
Stewardship Ontario (SO) is a private, not for profit organization that develops and
provides funds for the operation of Ontario’s highly successful recycling programs for
printed paper and packaging (Blue Box) and household hazardous and special waste
(Orange Drop). SO collects fees from stewards – the first importers, manufacturers, or
brand owners of materials that end up in curbside blue boxes or that are classified as
household hazardous and special waste. Steward’s fees help to pay for the costs of
collecting, transporting, recycling and disposing safely of products and packaging
throughout the Province of Ontario. More information about SO can be found at
http://www.stewardshipontario.ca/ .
The Canadian Plastics Industry Association (CPIA) is the voice of Canada’s plastics
industry. It is a national association with its membership spanning the country and
representing manufacturers of plastic resins, converters, machinery and equipment
suppliers, recyclers, brand owners and service providers. The core focus of CPIA is to
facilitate increased recycling and recovery of post use plastics through collaboration and
partnerships. Working collaboratively with governments and industry partners to develop
best practices, demonstrate efficient processing systems and foster innovation CPIA is
committed to the responsible management of a full spectrum of polymer resources. More
information about CPIA can be found at http://www.plastics.ca .
1.2.
The Opportunity
The joint working group (SO, CIF & CPIA) have agreed to work cooperatively on a REOI
open to all qualified interested parties. The REOI is to secure a process operator and/or
operation capable of managing residential source separated Polystyrene Foam baled or
loose/bagged from Ontario municipalities. The process technology used to prepare the
material for market is to be proven and is essential to accessing PS foam markets to
reduce transportation costs and enhance the marketability of the PS foam.
Markets for PS foam are well established with North America and global markets of
120,000 tonnes annually for clean densified PS foam cushion & food packaging. Market
demand exceeds supply; therefore there is a good opportunity to market all Ontario PS
Foam that is collected. To date Ontario Blue Box Foam and depot collected PS foam
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Request for Expressions of Interest for Polystyrene Foam Processing
have been successfully densified and manufactured into new products such as picture
frames and architectural mouldings.
Opportunities also exist for operators to process Industrial, Commercial and Institutional
(IC&I) generated PS foam to augment the base load provided by participating
municipalities. This additional tonnage will add to the viability of the project.
Additional information on Polystyrene Foam recycling and markets can be found at the
following Link: http://www.plastics.ca/Recycling/Polystyrene/index.php
1.3.
Purpose of the Request for Expressions of Interest
The purpose of this REOI is to solicit interest from organizations to process and market
municipally generated PS foam. The joint working group is interested in receiving
expressions of interest from organizations on the following:




Capabilities to receive PS Foam in loose and baled form from Ontario
municipalities for densification
Capabilities to arrange transportation from municipalities
Current and/or future capabilities to process PS foam for the end market
Capital and operating requirements and any needs for funding
The REOIs received will be evaluated by the joint working group to ascertain the
submissions qualifying for further investigation.
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Request for Expressions of Interest for Polystyrene Foam Processing
2.
Instructions to Respondents
2.1.
REOI Schedule
The following schedule for the REOI:
Milestone
REOI Release
Inquiry Deadline
Submission Deadline
Evaluation of Submissions and Site Visits
Respondent Choice Completed
2.2.
Date
May 25, 2012
June 1, 2012
June 15, 2012
June 18 to 28, 2012
June 29, 2012
Questions or Clarification Requests
Direct all inquiries to either:
 Mike Birett, CIF by phone (905)936-5661 or in writing at mbirett@wdo.ca before
June 1, 2012 by 12 noon;
 Rick Denyes, SO, by phone (416)303-0691 or in writing at
rdenyes@stewardshipontario.ca before June 1, 2012 by 12 noon.
2.3.
Submission Requirements
Organizations are required to submit their written responses to Section #5 Proposals
and signed by an authorized signatory of the company.
Submit by June 15, 2012 (12 Midnight):
Email: mbirett@wdo.ca or;
Fax: (866) 472—0107 or;
Mail To: 92 Caplan Avenue, Suite 51, Barrie, ON, L4N 0Z7
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Request for Expressions of Interest for Polystyrene Foam Processing
3.
Target Materials & Estimated Tonnage
3.1.
PS Foam Materials to be Processed
The materials are being collected by municipalities either through curbside Blue Box or
drop-off depots by residents. The PS foam materials collected include non-coloured
Expanded Polystyrene (EPS) protective/cushion packaging and Extruded Polystyrene
(XPS) foam generated in the residential waste stream.
EPS is typically present in the form of moulded blocks and sheets used to package
fragile goods for shipment. XPS is typically present in the form of foam meat trays, foam
take out containers, etc. Residents are instructed to rinse off residues and remove tape,
labels and other closely adhered materials.
3.2.
Material Shipped by Municipal Programs & Estimated Tonnage
The curbside collected PS foam is sorted at Material Recycling Facilities from other
recyclable materials in either one or two stream collection systems. These materials are
usually sorted manually in the presort area and baled for shipment. The majority of
materials being addressed in this REOI are curbside collected and baled materials.
Because PS Foam is in contact with other recyclables, some cross contamination occurs
and is not always removed before baling. Traditionally the curbside collected materials
are lower in quality versus drop of depot materials.
Drop-off depot materials are delivered by citizens to a designated location in bags or
loose. Municipalities collecting through depots need to bale these materials for shipment
to a processor/end market to overcome the high transportation costs of shipping loose
PS Foam. Some of the material in this REOI could be received by respondents loose, in
bags or baled. Depot material through experience has typically been lower in
contamination especially from manned depots.
The estimated annual tonnage of PS foam to be managed is in the 150 tonne range with
the majority of this tonnage expected to be baled materials. The joint committee will
make all efforts to make this tonnage available to the successful proponent but this
cannot be guaranteed as these materials are under the control of the municipality.
3.3.
Contamination
With the mix of curbside and depot materials collected, the expected level of
contamination is estimated to be in the 5% to 10% range. The composition of this
contamination could be paper, other plastic containers, film plastic, metal cans, look
alike foams (e.g. Arcel) and other packaging materials collected in the Blue Box or
ending up in the depot collection container.
Typically before PS Foam is processed, the non-PS Foam materials are removed by a
Quality Sorter.
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Request for Expressions of Interest for Polystyrene Foam Processing
4.
Marketing
4.1.
PS Foam Markets
The major market for processed PS foam is picture frames and architectural mouldings.
Generally specifications are not available from these markets. These markets state they
will require clean densified PS Foam material and will demand samples to test for quality
and value.
The end markets usually receive densified foam palletized (450 kg/pallet) and stretch
wrapped. Typical densified loads are in the 18 to 20 tonne range.
5.
Proposals
Respondents should submit written proposals for the process operation and marketing of
PS Foam which should contain the following information:
Operational
 Description of the current business and ownership
 Means of processing polystyrene foam and description of fit with current
business
 Internal resources to be allocated to PS recycling; e.g. warehouse space, man
power, quality control, mechanical, loading/unloading, arranging transportation
and other key supporting information
 Other available sources of PS foam supply to increase equipment utilization
 Maximum estimated capacity of the existing or proposed densifying equipment
Financial
 Capital investment required, terms and conditions of that investment
 Other relevant cost data; e.g. operating costs, waste disposal costs, revenue for
municipal material and other key supporting information
 Assumptions used in financial calculations
Marketing
 Intended markets for finished goods
 Market value and outbound freight assumptions
6.
Process Evaluation
All submissions will be treated confidentially.
The proposals will be reviewed by the joint working group who will assess the
qualifications of the respondents. The recommendations of the joint working committee
may involve site visits to qualifying respondents to assess the suitability of the
respondents operations to manage Ontario municipal PS foam in a sustainable manner.
The joint working group is not bound to the Final Decision Timeline as this will be
dependent on the submissions received and the conditions presented by the
respondents that may require further investigation and negotiation of terms.
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