Have ever given much thought to how NYC really works in terms of waste paper collection, recycling the waste paper and what happens to all those out throws (rejects) we get with the waste paper?
Let’s see a short video that will illustrate how NYC works?
Newspaper and Magazines……
Office Waste, Shredded paper
All kicked to the curb for collection. Once it is collected we turn one man’s trash into another’s Fortune.
As you are well aware there are many different grades of paper, but the main sources of fiber for our paper machine are MW, OCC, DLK………….But that’s not exactly all we receive at the mill…….we get plastics, wet strength boxes, and……………..
Office Chairs, and Shelving material
Sewing machines, and fans
Car Seats, wires, and household containers
And the ever so lovely………The FRIDGE
So how do we get rid of this crap?
As the paper gets sorted, all those big items you saw previously are easy to spot and they are taken out of the pile prior to getting into the pulper.Once the pile pf paper is in the pulper, the pulper works as a blender. It breaks down the cardboard and other paper products into individual fibers that can be used by the paper machine to make new cardboard.
For those of you who have not seen a pupler before, here’s an example of one……
After some time in the pulper, all those contents are drained and sent to the Contaminex….a screen that separates the pulped fiber from other rejected material that can not be used…..ex. Plastics, Wet Strength boxes, etc.This material is kicked out, we call that STREAM I Rejects. All this material is pushed to the conveyor belt which moves it to MITCH’S BAD ASS COMPACTOR
Here’s what this pile looks like…….
Other smaller non-pulpable material then passes through an R9 Screen Drum for a recovery of any usable fiber that was not captured in the first process. Once that is done, all rejected material is pushed to the reject belt, that is REJECTCS STREAM II……..Mainly loose material that can not be baled.
Going to back to STREAM I rejects,
This material is wet and obviously heavy……so by eliminating the water component out of those reject tons, we save a substantial amount of money in Hauling and Landfill Costs.
The new Baler (MITCH’S BAD ASS COMPACTOR) was up and running in late FY ’11……
Total cost of that baler was around $500k…………worth every penny.
Dewatering process removes about 35% of the weight in water………substantial savings…
Material pushed on a conveyor belt into the baler.
Baler compacts it, draining the water out.
Baler can produce 100+ Bales per day.
A bale weighs close to 2 Tons.Bales are then strapped.
Bales are stored waiting to be moved off site.
So how much reject material do we process…………….
We average about 400 Loads of Rejects per month.
FY ’15 we had 102,198 Tons of reject material
We talked about REJECTS STREAM I and STREAM II………….
Stream I represents almost an 18% of our produced tons.
Stream II will obviously be a small % since we captured the majority of rejects in stream I….the average is about 11% of our produced tons.
Total Rejects for FY ’15 was 28.6% of production.
So translating those precentages into real tons…….
Stream I was 63,696 tons while Stream II was 38,502 tons
So what does it cost to get rid of those tons?
The cost to get rid of those rejects varies based on the type of material (Baled, Loose) and where it is going, Landfill or the gasifier………….but the blended cost in FY ’15 was $54.74or $5,594,318.52
The average cost per load in FY ’15 was around $1,195 which is up $100/load due to increase in Fuel Costs and Landfill Costs, in addition to lower tons going to the gasifier
To illustrate the difference between the baled and the loose rejects……….
Stream I which is baled material average cost was $61.46 while Stream II for Loose rejects was $43.61
Loose Material goes to PA while Baled material goes all the way to OH sometimes.
So again where do those reject tons end up?
Landfill or Gasifier
This is to illustrate where do those tons go:
FY ’12 was the best year for the gasifier……….we sent about 47k tons to the gasifier and saved quite a bit of money by going to the gasifier Vs. Landfill and we will get to those savings in a bit.
And as you can see that tonnage going to the gasifier has been on the decline since FY ’12 to rest at ONLY 18K tons in FY ’15 Vs. 84K tons that went to the landfill.
Now all material can not go to the gasifier, only baled. The remainder goes to landfill.
So how much do we spend per year on landfills?
FY ’15 as stated before we sent 84k tons to the landfill costing us $4.7m or $56.38 per Ton…..now that is Landfill cost only.
As I mentioned before we send ONLY the baled material to the gasifier.
FY ’15 we had about 62k tons of baled material that could have all been sent to the gasifier as some savings.
We also had about 40k tons of loose material that has no home other than the landfills.
So how much does it cost to send those tons to the gasifier?
In FY ’15 we averaged about $47.09/ton or $950/load to transport to the gasifier, but the gasifier was only able to accept 18k tons out of the 62k of baled material.
So as an example:
FY ’15 we had 62k tons of baled material
Sent 18k to the gasifier and that left 44k tons to go to the landfills
Let’s look at the comparison in cost between the landfill cost/tn Vs. the gasifier cost/tn.
Quite a bit………..$19.88/tn in savings to send those rejects to the gasifier.
So to continue our example……
In FY ’15 we sent 44k baled tons to the landfill at a loss of $19.88/tn
That could have meant an EBITDA increase to NY of about $868k…………….