Cheaper Virgin Plastics to Start a War on Plastic

The goal of reducing plastic waste in Europe might become more difficult as the cost of recycled plastic soars.

Initially, recycled plastic flakes were cheaper than using the freshly made equivalent derived from fossil fuels, making it both a sustainable and economical option. But because of a flood of petrochemicals production in the United States, new plastic became cheaper.

According to analysis, this trend is driven in part by the growing demand to include recycled plastics in new products. Meanwhile, new plastic is becoming cheaper to make due to a flood of petrochemical production from the U.S. driven by the shale gas boom.

S&P Global Platts, a market specialist, reported that a ton of new plastic would cost $72 less compared when using recycled plastic. The estimated amount of manufacturers could save yearly is around $250 million.

Larger plastic manufacturers might not be able to switch their machinery back to virgin plastic. However, the case is not the same with smaller manufacturers, especially the producers of clear plastic bottles and disposable punnets.

The experts want the government of the United Kingdom to do measures to encourage consumers and producers to patronage recycled plastic instead. Among these measures are the modernization of recycling facilities and building more recycling facilities. Importing recycled plastic flakes from Latin America is also proposed.

The U.K. is currently proposing a provision to increase the tax of companies that do not use recycled plastic by 30%. But as long as it is still not implemented, using virgin plastic might be cheaper.

Small step but huge potential

Coca-cola recently released its first sample of drinking bottles created from plastic waste retrieved from the Mediterranean Sea.

The project was made possible through the partnership of Ioniqa Technologies, Indorama Ventures, Mares Circulares, and The Coca-Cola Company. Using what they called a "revolutionary enhanced recycling technique," they were able to break down the trash, remove the impurities, and convert it to a "good as new" plastic product.

At least 300 bottles were created from 25% of plastic debris they have collected. Most of these were lower-grade plastics—these were considered as unrecyclable and will often go to an incinerator or to landfill.

Bruno van Gompel, the director of Technical and Supply Chain in Coca-Cola Western Europe, claimed that this initiative has huge potential and called it exciting as it sped up the vision of continuous plastic recycling.

Tonnis Hooghoudt, the CEO of Ioniqa Technologies, a Dutch company dedicated to enhancing recycling technology, claimed that they aimed to "remove the concept of single-use plastic and plastic waste altogether".

Coca-Cola plans to make this product available in the market next year.

The Coca-Cola company was previously reported to produce at least 3 million tons of plastic packaging waste yearly.