TOWARDS CIRCULAR PLASTIC PACKAGING :

ROLE OF VIRGIN RESIN PRODUCERS

Greener Packaging Seminar

Brussels, November 17th, 2016

herman.van-roost@total.com

« Things are only impossible until somebody does them … »

Packaging Construction / Building Automotive Electrical / Electronics Others

TOTAL’s 3 main polymers : 6 million tons annual sales (ww)

13%

9%

5%

41%

32%

4%4%

11%

24%

57%

28%

3%

29%

40%

Polystyrene

PS Polypropylene

PP

Polyethylene

PE

76 Mt 11 Mt 52 Mt

2

CIRCULAR ECONOMY : ‘THE FORCE’

3

● Circularity = very strong concept : simple and visual :

showing the direction where to go (over time)

● Creates a new hierarchy of priorities !

• « OK to optimize costs and profitability, within boundaries of

circularity »

● Comparable to ‘Safety First’ criterium that revolutionized safety

management in the industry since ~1980

• « OK to optimize cost and production, within boundaries of safety »

Umbrella citerium

No trade-offs, no confusion,

easy to understand

Waste

producers Citizens Voters

Investors

Customers

Central Driver =

capital of public sympathy

for RECYCLING

WHAT DRIVES THE CIRCULAR ECONOMY REALLY ?

4

Authorities

EU

National

Regional

Local

Waste actors

Private Public

Associations /

EPR schemes

Industry

Material producers

Convertors

Brand owners

Distribution

Political

groups

Consultants

KPI’s

Rules

Criteria

Achievements Constraints

NEW ROLES AND RESPONSIBILITIES

FOR ECONOMIC ACTORS ….

5

WHICH ROLE FOR A VIRGIN PLASTICS MANUFACTURER …?

Waste service providers : become material suppliers

Packaging sector : privileged position !

- main source of secondary raw material ! >60% of all plastic waste

- short shelf life : predictable availability + regulatory compliance

- packaging design = key criterium for ‘circular potential’

VIRGIN PLASTICS INDUSTRY PERSPECTIVE …

6

V

PLASTICS HISTORICAL SUCCESS STORY :

RELENTLESS INNOVATION FOCUSED ON (LINEAR) GROWTH

7

World demand, index

!?

Can we, together, focus innovation on circularity ?

(Demand saturation expected

around 1000 MT/y)

50 MT

350 MT

TODAYS LINEAR REALITY OF PLASTIC PACKAGING

8

Virgin resin

production

Innovative

design and

conversion

(Limited) collection,

focus on heavy

materials (KPI’s)

Throughput-

oriented

sorting, few

categories

Low quality, low volume, low yield recycling

Each actor innovates for own

economics

Source : Ellen MacArthur Foundation, McKinsey

(similar to paper 30 years ago… !)

CIRCULARITY AND VIRGIN PRODUCERS :

PLASTICS VERSUS OTHER COMMODITIES

9

Product World

market

Estim. Recycled

content

Role of

‘virgin’ industry

Steel 1600 MT 60% Key contributor to the circular

chain :

Technology based enhancer /

stabilizer of recyclate for

downstream use as recycled

content, just like virgin material

Paper / Cardboard 400 MT 70%

Aluminium 90 MT 45%

Glass 55 MT 50%

Copper 25 MT 35%

Plastics (°) 310 MT ~9% No significant involvement

PET = exception 77 MT 25% Active cooperation to strengthen

recycling

(°) without PET : < 6%

(°)

WHY DO WE CARE …?

NEW (VIRGIN) MATERIALS SEGMENTATION !

10

Linear (« fossil ») materials :

● Single use lifetime ; end-of-life = in land

or sea, or partly recovered as energy

● Little or no good recyclate available

● Impossible for converters and brand

owners to combine virgin material with

recycled content

● Gradually de-selected, and

substituted by circular materials,

wherever possible.

Circular materials :

● Multiple use lifetime ; waste = new feedstock

● Plenty of good recyclate available, for use as

recycled content

● Structural cooperation between ‘circular

stakeholders’, preserving the circularity.

● Virgin materials thrive as ‘performance

enhancer’ for ‘recycled content’

● Growth, development, new technologies and

competencies, gradually substituting linear

materials

Circularity

Support

HOW COULD TOTAL CREATE VALUE IN PLASTICS

RECYCLING ?

11

Recyclers

Plastic

recyclate

rPE

rPP

rPS

Collection /

sorting

Technology,

product

development Consumer

Convertor

Brand

owner Customer intimacy:

Fulfilling unsatisfied

needs

Provide materials

science for Eco-design

Collaborative

projects

Extend accessible markets

of recyclate

Process

technology

Virgin

molecular

DESIGN

Virgin + Recyclate

Circular Compounds

On-purpose CIRCULAR design of virgin resin :

as performance booster for recyclate !

12

Flex Modulus Melt Flow (HLMI)

Stress Crack Resistance (ESCR, h)

60

50 Typical virgin 5502

Typical virgin 5802

Typical recyclate

E.g. HDPE bottles for

industrial and

household liquids

Circular Compound, 50…% post-consumer

recycled content

+ 100% fragrance free :

Total’s deep decontamination process

>>600

ONGOING CIRCULAR COMPOUNDS DEVELOPMENTS

13

● rHDPE

- Food contact packaging

- Injection & Blown Film

- Technical applications

● rPP

- Injection

- Food contact packaging

- Automotive

● rPS

- Technical parts

- Food contact packaging, thermoforming

EXTENDING RECYCLATE MARKETS WITH CIRCULAR COMPOUNDS :

PLASTIC ROAD PARTNERSHIP

14

Plastic

Road

NEW PLASTICS ECONOMY : CIRCULAR

15

Virgin booster

production

Circular focused

eco-design conversion

& innovation

Collection of all plastics

(providing scale economics)

Sorting of all

polymers

High technology, high yield recycling Deep

decontamination /

food contact

Common care by circular

stakeholders to preserve

circularity

Recyclate

Boosting

(similar to paper today… !)

Naturel

Non-Food

REMAINING BARRIERS FOR RECYCLATE TO ACCESS VIRGIN MARKETS :

FOOD CONTACT AND MASS COLORATION

16

Colored / black

Non-food

Naturel

Food contact

Color / Black

Food contact

Virgin markets segmentation Recyclate

Moon-shot developments required !

- Circular Ecodesign

- Technology

- Regulation

99%

NATURAL PACKAGING SOLUTION : UNIQUE OPPORTUNITY TO INJECT VALUE WITHOUT SUBSIDIES

17

The practice to colour in the mass destroys a lot of ‘circular economics’ !

- Natural recyclate has 200 €/t more value than coloured recyclate : access to virgin markets

- Colour and marketing messages : concentrate on shrink film, removed at recycling

CIRCULAR COMPOUNDS :

ADVANTAGES FOR ALL STAKEHOLDERS

18

•Circular solution for high end

•High % PCR

•Low footprint, by composition and by process

•Guaranteed quality

•No design constraints

•Equivalency to virgin resins

Brand owners

•Ready-to-use

•Guaranteed resin properties

•Compatible with current and future transformation

technologies

•Resin consistency by design

•PCR certification delivered

•Service level ‘as usual’ from virgin supplier

Converters •No disruption of the recycling industry

•New markets for recyclate

•Breakthrough for plastics recycling

Recyclers & society

Technology based ‘enhancer /

stabiliser’ of recyclate feedstock,

enabler of the circular economy for

plastics.

Virgin plastic producer’s

new role :

Titre de la Présentation – Lieu et Pays – Date Jour Mois Année 19