FACT SHEET Market summary – shredder floc In 2013-14 Sustainability Victoria commissioned market analysis into four waste materials identified as priorities for market development and four which are emerging materials of interest. This fact sheet summarises the findings for shredder floc. Terminology Shredder floc is a by-product of metal reprocessing, primarily from the recovery of end-of-life vehicles (ELVs) and white goods, including refrigeration and air conditioning equipment. ELV reprocessing in Australia has a recovery rate of approximately 65-75 per cent1 and involves removing pollutants, dismantling, shredding and metal separation. The material remaining after the separation of metals is called shredder floc. Composition Shredder floc typically consists of a combination of plastics, rubber, textiles, metals and inert materials such as dirt and glass (see table), and is generally contaminated with heavy metals, mineral oils and hydrocarbons. The composition of shredder floc does not differ greatly between ELVs and white goods, although older white goods can contain polychlorinated biphenyls (PCBs), which ELVs do not, as well as higher levels of copper. Table 1: Average shredder floc composition Material type Average composition range (% weight) 2 Plastics 35 – 55% Rubber 10 – 20% Metals 6 – 13% Textiles 7 – 15% Fines (paint, glass, sand) 10 – 20% Shredder floc is composed of two distinct fractions based on size. 1. A finer ‘heavy’ fraction (particle size less than 25 mm), which is predominantly inert material with minor organic content. Anecdotal estimates indicate that the fine fraction accounts for approximately 30 per cent of the total shredder floc produced. “Environmental Impact of End-of-Life Vehicles: An Information Paper”, last modified 2002, http://www.environment.gov.au/archive/settlements/publications/waste/elv/impact2002/index.html. 1 2 Ciacci, Luca, et al. "A comparison among different automotive shredder residue treatment processes." The International Journal of Life Cycle Assessment 15.9 (2010): 896-906. 2. A coarser ‘light’ fraction (particle size varies, generally in excess of 50 mm), which is predominantly plastic, rubber and textiles. Anecdotal estimates indicate around 30 per cent of total shredder floc produced is around 50 mm in size, and 40 per cent exceeds 50 mm. Volumes There is no specific information available on volumes however anecdotal industry estimates indicate there is between 150,000 and 200,000 tonnes of shredder floc produced per annum in Victoria. Table 2: Estimate of potential shredder floc volumes in Victoria Year Total shredder floc generation Assumed shredder floc composition Fine ‘heavy’ fraction (25 mm or less, mostly inert) (lower (higher (lower estimate) estimate) estimate) Coarse ‘fluffy’ fraction (over 25 mm, mostly plastic, rubber and textiles) (higher estimate) (lower estimate) (higher estimate) 2013 140,000 200,000 42,000 60,000 98,000 140,000 2014 142,460 203,500 42,700 61,000 99,700 142,460 2015 145,000 207,100 43,500 62,000 101,500 145,000 2016 147,600 210,900 44,300 63,300 103,300 147,600 Products and applications In Australia, shredder floc is sent to landfill for disposal, although the industry commonly uses it as a daily cover on landfills. Internationally, some recovery of shredder floc does occur. In Europe, this is mostly driven by the European Commission Directive 2000/53/EC, which aims to reduce the hazardous componentry of vehicles and achieve a target of 85 per cent for reuse and recycling (excluding energy recovery), and 95 per cent for reuse and recovery (including energy recovery), by 2015. Two main types of technologies exist for the treatment of shredder floc; those based on mechanical separation, and those based on thermal treatment. Mechanical separation allows for the shredder floc to be sorted into different sized fractions which can then be recycled. Textile fibres are then used as a de-watering agent or a coal substitute in coke production. The mineral fraction is used as landfill cover, for slope filling and in road construction. (Note: there is only one landfill in Victoria that is currently licensed to accept shredder floc and use it as daily cover). In contrast, thermal treatment usually involves initial separation of metals, and then combustion of the residual material via technologies such as gasification. The gas can be combusted to create energy, or used in the manufacture of various chemical products. The ash from the gasification process can be used as an inert construction material. A combination of these two technologies can also be used. Market overview Shredder floc is currently landfilled in Victoria as there is no established market. Industry consultation suggests that generators of shredder floc face disposal costs of $70–$100 per tonne, or between $15 - $20 million in total. Industry therefore has a strong desire to identify an alternative use. Potential markets, and barriers, are shown below. Table 3: Potential market opportunities and barriers for shredder floc in Victoria Potential market Barriers Use in a non-load bearing cement material, such as a fascia product. The shredder floc would require a significant amount of preprocessing to improve particle consistency and product quality. Use of the finer inert shredder floc fraction in road base or asphalt production, as a substitute for virgin sand. The shredder floc is potentially contaminated with volatile hydrocarbons. Vapours and fumes would likely be produced during asphalt production. Use of the coarser fraction (composed mainly of plastic, rubber and textiles) in an energy from waste application. Given the variable composition of the shredder floc, the type of technology capable of accepting it for this use may be limited. The material is likely to require treatment prior to use in asphalt. The cost is likely to be prohibitive given the relative cheap price of substitute material (virgin sand or recycled glass sand). Ability to secure shredder floc feedstock long term. Market barriers The key market barriers for use of shredder floc are cost and contamination. Residual oil is the primary contaminant persisting in shredder floc and it is therefore treated as a prescribed industrial waste. There are processes and technologies available that would allow oil to be easily extracted from ELVs. However, this would require additional cost in a market already experiencing pressures from the downward trend on scrap prices. Industry consultation suggests that the only viable end market for shredder floc is as a fuel, either co-fired or more likely as an input to a bespoke Energy from Waste (EfW) facility but that the barriers are currently unsurmountable. The uncertainty regarding contaminant levels and high processing costs, at present, precludes shredder floc from being used in other products such as fascia or road base. Market risks There are three key market risks for the use of shredder floc. Environmental: The impact of contamination indicates that environmental risks are significant. While recent studies suggest that polychlorinated biphenyl (PCB) contaminants are largely locked up in plastic componentry, the risk of oil contamination remains very high. Regulatory: Shredder floc is currently not a classified industrial waste and this impacts on the ability of the material to be used in other applications. Uncertainty means long-term investment is unlikely. Social: Social concerns are likely to be high in the event that EfW infrastructure is installed to process shredder floc, and pose risks for planning applications. Market opportunities There is little market opportunity for shredder floc under current conditions. The material is not currently a prescribed industrial waste, however should this change, it could potentially make a number of processing options financially viable. However, risks associated with contamination would need managing. They could also limit available market options and impact on processing of end-of-life vehicles and other feedstock in Victoria given high disposal costs and the low value of scrap metal. Further Information For more information contact Jane Street on: T: (03) 8656 6709 E: jane.street@sustainability.vic.gov.au or visit www.sustainability.vic.gov.au/marketanalysis Sustainability Victoria Level 28, Urban Workshop, 50 Lonsdale Street, Melbourne VIC 3000 Phone (03) 8626 8700 sustainability.vic.gov.au Published by Sustainability Victoria. Market summary – shredder floc © Sustainability Victoria, September 2014 IWM030