U.S. DEPARTMENT OF COMMERCE
National Technical Information Service
PB-261 287
WASTE CLEARINGHOUSES AND EXCHANGES: NEW WAYS
FOR IDENTIFYING AND TRANSFERRING REUSABLE
INDUSTRIAL PROCESS WASTES
ROBERT C, TERRY, ET AL
ARTHUR D, LITTLE, INCORPORATED
CAMBRIDGE, MASSACHUSETTS
OCTOBER 1976
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WASTE CLEARINGHOUSES AND EXCHANGES:
NEW WAYS FOR IDENTIFYING AND TRANSFERRING REUSABLE
INDUSTRIAL PROCESS WASTES
This final report (SW-130c) describes work per-
formed for the Federal solid waste management
programs under contract no. 68-01-3241 and
is reproduced as received from the contractor
U.S. ENVIRONMENTAL PROTECTION AGENCY
1976
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TECHNICAL REPORT DATA
(Please read Instructions on the reverse before completing)
i REPORT NO
SW-130c
3. RECIPIENT'S ACCESSION-NO.
4 TITLE AND SUBTITLE
WASTE CLEARINGHOUSES AND EXCHANGES: NEW WAYS FOR IDEN-
TIFYING AND TRANSFERRING REUSABLE INDUSTRIAL PROCESS
WASTES
5. REPORT DATE
October 1976; Issuing Date
6. PERFORMING ORGANIZATION CODE
7 AUTHORis) Robert c. Terry, Jr., Joan B. Berkowitz,
C. Michael Mohr, Joseph P. Tratnyek, John T. Funkhouser,
Blair C. Shick, Andrew C. Somogyi.
8. PERFORMING ORGANIZATION REPORT NO
C-78494
9 PERFORMING ORGANIZATION NAME AND ADDRESS
Arthur D. Little, Inc.
20 Acorn Park
Cambridge, Massachusetts 02140
10 PROGRAM ELEMENT NO.
11 CONTRACT/GRANT NO
68-01-3241
12 SPONSORING AGENCY NAME AND ADDRESS
Hazardous Waste Management Division
Office of Solid Waste Management Programs
U.S. Environmental Protection Agency
Washington, D.C. 20640
13. TYPE OF REPORT AND PERIOD COVERED
Final. June 1975-October 1Q76
14. SPONSORING AGENCY CODE
15. SUPPLEMENTARY NOTES
16 ABSTRACT
This report examines the experience of the industrial waste information clearing-
houses operating since 1972 in ten European countries, explores opportunities for
the waste transfer concept in the United States, outlines the requirements for suc-
cessful transfer organizations, and describes their techniques and procedures. The
transfer approach seeks to broaden the potential markets for both new and apparently-
marginal industrial process residues, and thus to reduce the quantity of potentially-
harmful wastes requiring disposal into the environment. The study analyzes concepts
and requirements for transferring wastes, distinguishing between "trash waste," bavin?
no reuse value whatever, and "scrap waste," having some reuse value. It identifies
and estimates quantities of industrial process wastes suitable for transfer, especially
in the Philadelphia SMSA. It describes the two basic types of transfer organization—
clearinghouses, which transfer only information about wastes, and exchanges, which
transfer (and process, if necessary) the actual scrap materials from generator to user;
for each type, details are given of services, methods, organization, and finances. Two
subtypes of clearinghouses, subsidized and financially self-sufficient, are distin-
guished. Appendices contain details about existing clearinghouses and exchanges, daua
and methods for identifying scrap wastes and their uses, economics of transferring
wastes, various institutional options, and liability and other legal considerations.
The summary lists next steps needed to develop clearinghouses.
17.
KEY WORDS AND DOCUMENT ANALYSIS
DESCRIPTORS
b.lDENTIFIERS/OPEN ENDED TERMS C. COSATI Field/Group
Chemical Wastes
Hazardous Wastes
Industrial Process Residues
Waste Disposal
Waste Exchanges
Industrial Waste Disposal
Industrial Waste Informa-
tion Clearinghouses
Industrial Waste Mate-
rials Exchanges
Chemical Wastes
Waste Transfer
18 DISTRIBUTION STATEMENT
RELEASE TO PUBLIC. Available from
U.S. Environmental Protection Agency,
Washington, D.C. 20640
19. SECURITY CLASS (This Report)
UNCLASSIFIED
21. NO. OF PAGES
20 SECURITY CLASS (Thu page)
UNCLASSIFIED
EPA Form 2220-1 (9-73)
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This report has been reviewed by the U.S. Environmental Protection Agency and
approved for publication. Its publication does not signify that the contents necessarily
reflect the views and policies of the U.S. Environmental Protection Agency, nor does
mention of commercial products constitute endorsement or recommendation for use by
the U.S. Government.
An environmental protection publication (SW-130c) in the solid waste management
series.
ii
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TABLE OF CONTENTS
Page
List of Tables vi
List of Figures vii
Acknowledgement viii
EXECUTIVE SUMMARY - MAJOR FINDINGS AND NEXT STEPS 1
I. INTRODUCTION 11
Problem and the EPA Response 11
Objectives and Focus of This Study 13
PART ONE - BASIC CONCEPTS AND DATA
II. TRANSFERRING WASTES: CONCEPTS AND REQUIREMENTS 15
The Concept of Waste Transfer 15
Requirements For a Transfer 18
III. POTENTIAL OPPORTUNITIES FOR WASTE TRANSFER 25
National Waste Stream Data 25
Industries and Wastes Suitable for Transfer Services 29
A Sample Area: Philadelphia 31
IV. TWO TYPES OF TRANSFER ORGANIZATION 37
PART TWO - INFORMATION CLEARINGHOUSES
V. SERVICES AND METHODS 41
Services 41
Operations and Methods 42
iii
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TABLE OF CONTENTS (Continued)
VI. ORGANIZATION AND FINANCES 47
Staff 47
Finances 48
Organizational and Legal Considerations 51
PART THREE - MATERIALS EXCHANGES
VII. SERVICES AND METHODS 53
Services 53
Methods for Assessing and Transferring Scrap Wastes 55
VIII. OPERATIONS, ORGANIZATION, AND FINANCES 59
Operations 59
Staff 61
Finances 63
Organizational and Legal Considerations 64
APPENDICES
A. IN FORMATION CLEARINGHOUSES 65
European Models 65
U.S. Versions of the European Model 74
Operating Experience 76
Advertising Wastes in Technical Journals 78
Commercial Variations 78
B. MATERIALS EXCHANGES 81
Characteristics 81
Two Samples 81
A New Exchange Concept 84
IV
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TABLE OF CONTENTS (Continued)
Page
C. DATA AND METHODS 87
Identifying Scrap Wastes and Their Uses 87
A Sample Transfer Area: The Philadelphia SMSA 89
D. ECONOMICS OF TRANSFERRING WASTE MATERIALS 109
Economic Feasibility of a Transfer 109
Economics of Transfer by a Materials Exchange 116
E. INSTITUTIONAL ANALYSIS AND OPTIONS 123
Influences on Transfer Agents 123
Institutional Sponsorship 123
F. LEGAL ASPECTS OF TRANSFERRING WASTES 131
The Potential For Legal Liability 131
Other Legal Considerations 135
GLOSSARY OF NAMES AND TERMS 137
REFERENCES 141
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LIST OF TABLES
Table No. Description Page
11-1 Requirements for a Transfer 20
111-1 Manufacturing Process Wastes from Selected U.S. Industries 26
111-2 Potentially Transferable Wastes from Selected Industries 27
111-3 Wastes Generated and Potentially Transferable, Philadelphia SMSA 32
IV-1 Comparison of Clearinghouses and Exchanges 38
A-1 Waste Information Clearinghouses 66
A-2 Sample of Items Listed by U.K. Clearinghouse 68
A-3 Sample List from German Clearinghouse 71
A-4 First List from St. Louis Clearinghouse 75
A-5 Sample List from French Clearinghouse 79
C-1a Generation and Potential Uses of Selected Chemical Wastes 90
C-1 b Generation and Potential Uses of Inorganic Chemical Wastes 91
C-1c Generation and Potential Uses of Organic Chemical Wastes 92
C-2 Range of Plant Employment, Philadelphia SMSA 94
C-3 Summary of Waste Generation by Plant and Industry, Philadelphia SMSA 95
C-4 Summary Information from Telephone Interviews 98
C-5 Summary Information from Plant Visits 102
D-1 Definitions and Units for Economic Analysis 110
E-1 Internal Characteristics of Waste Transfer Organizations 124
E-2 External Conditions Influencing Transfer Organizations 126
E-3 Institutional Sponsorship: Options and Merits 128
VI
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LIST OF FIGURES
Figure No. Description Page
11-1 Hierarchy of Purity Requirements 21
V-1 Waste Material Registration Form 45
VI11-1 Punched-Card Format for Waste Material Data File 62
A-1 U.K. Form for Submitting Waste Offers and Requests 68
A-2 U.K. Forms for Inquiring About Waste Offers and Requests 72
C-1 Philadelphia SMSA and Neighboring Industrial Areas 93
D-1 Savings to Generator or to User 114
D-2 Economics of a Materials Exchange 119
D-3 Economics of Transferring Selected Wastes 120
Vll
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ACKNOWLEDGEMENT
We were assisted in conducting this study by many persons and organiza-
tions in Europe and the United States. They include industrial firms, industry
and professional associations, and agencies of state and local governments, espe-
cially those concerned with the Philadelphia metropolitan area. Only a few could
be cited in the text, but we are pleased to acknowledge the contributions of all
with thanks.
Vlll
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CONVERSION TO METRIC UNITS
In this report, some units are expressed in U.S. customary units. Conversion
to metric units is easily accomplished by using the following formulae:
Multiply miles by 1.6092 to get kilometers
Multiply tons by 0.9072 to get metric tons (103 kg)
Multiply pounds by 0.4536 to get kilograms
IX
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EXECUTIVE SUMMARY
MAJOR FINDINGS AND NEXT STEPS
The U.S. Environmental Protection Agency (EPA) estimated in 1976 that 344 million
metric tons (wet basis) of industrial processing residues are generated annually in the United
States. EPA suggests* that plant managers and engineers consider the following sequence of
steps as they develop their waste management strategies:
(1) Minimize the quantity of waste generated by modifying the industrial
process involved.
(2) Concentrate the waste at the source (using evaporation, precipitation, etc.)
to reduce handling and transport costs.
(3) If possible, transfer the waste "as is", without reprocessing, to another facility
that can use it as a feedstock.
(4) When a transfer "as is" is not possible, reprocess the waste for material
recovery.
(5) When material recovery is not possible,
(a) Incinerate the waste for energy recovery and for destruction of hazardous
components, or,
(b) If the waste cannot be incinerated, detoxify and neutralize it through
chemical treatment.
(6) Use carefully controlled land disposal only for what remains.
EPA commissioned this one-year study both to explore the feasibility of the waste transfer
concept (step 3 and to some extent step 4) and to outline the requirements for a successful
waste transfer organization. The purpose of the transfer approach is to help broaden the
potential markets for both new and apparently-marginal industrial residues, and thus to
reduce the quantity of potentially harmful wastes which require disposal into the natural
environment. Hence, established secondary materials markets were not within the scope of
the study.
•Federal Register, Vol. 41, No. 161, pp. 35050-1.
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This study began by investigating the several existing European "waste exchanges."
whose purpose is to transfer information about wastes available and wastes sought as food-
stock. It was soon discovered, however, that a few chemical reclamation companies also
offer to transfer waste materials. This led to the distinction between two types of transfer
agents, the "information clearinghouse" and the "materials exchange": the former transfers
information only, while the latter accepts residues, analyzes them, identifies new uses, treats
them as necessary, and then actively seeks buyers. Both types of organizations were studied.
CONCEPT OF WASTE TRANSFER
Waste transfer is both similar to and different from the purchase and re-use of indus-
trial by-products. In both cases, an industrial process generates, in addition to its principal
product, some material which is not usable by the generating company, but which can
economically be sold for reuse by another company. When the material has a well recognized
value which justifies the costs of recovery, handling, and transportation, it is known as a
by-product. When the material has a value which has not been recognized, it is a potentially
transferrable waste. So long as disposal is easy and inexpensive, disposal is the waste gener-
ator's economically preferred course. Transfer to another plant or industry is economically
attractive only when disposal presents major problems, as will increasingly be the case as
restrictions tighten and costs rise.
While some transfers occur directly through the initiative of either the waste's generator
or its potential user, large-scale realization of the concept requires a third party or "transfer
agent." This is because the possible uses are not well established, generators and potential
users usually do not know about each other, and companies are reluctant to reveal infor-
mation about their processes and materials. A transfer agent is therefore needed to identify
generators and users to each other while at the same time protecting confidential informa-
tion until a promising match is identified. Still more transfers can be made if the transfer
agent is able to offer additional services, such as assistance with negotiations, consultation
about uses and reprocessing requirements, or actual handling of the materials.
The term "waste" has two meanings which are related but distinct. First, it can refer
to damaged, defective, or residual material resulting from an industrial process, retaining
some or much of its original value; this is "scrap waste" or "scrap". Second, in everyday
usage "waste" can refer to any kind of refuse, with no value, which can only be thrown
away; this is "trash waste" or "trash". In common usage of "waste", confusion often arises
because the distinctions between "scrap" and "trash" are not obvious to everyone. What is
considered trash by one person is considered useful by another. This difference between two
values seen in one waste is central to both the economic and the technical viability of waste
transfer, and creates opportunities for transfer agents.
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THE TRANSFER AGENT'S FUNCTIONS
Engineers routinely examine their residues to seek further uses as by-products. In recent
years, stricter waste disposal regulations and the scarcity and rising prices of raw materials
have made it more economically attractive for companies to research further uses for the
valuable components of their wastes. Large companies with many processes and skilled
chemical engineers are likely to find those recycling opportunities which exist, particularly
within their own manufacturing facilities.
However, even engineers in large national companies are not likely to recognize all
waste transfer opportunities outside of their own industry. Moreover, technical discoveries
of new ways to find value in scrap do not occur in all companies at once. Also, medium-
sized or small companies typically lack the time and skills to find reuses for their wastes.
Therefore, needs exist which a formal, institutional transfer agent can satisfy. Indeed,
the difficulties which many engineers face in distinguishing between scrap wastes and trash
wastes offer the opportunities for waste transfer agents to provide useful technical and
economic services. The transfer agent works at the fuzzy and shifting boundary between
wastes and by-products. If successful, the transfer agent will gradually identify what can be
described as a "scrap chemicals market," a small but distinct market sector containing
materials which are more valuable than trash but less valuable than established by-products.
The transfer agent may also lift some scrap wastes with uncertain value up into the category
of by-products with well recognized value.
The function of the transfer agent, therefore, is to identify and help bring together
the generator, who views the waste as trash without further value, and the user, who views
it as scrap with re-use value. In this process, the transfer agent identifies scrap materials of
interest to both generators and users.
To be economically and technically useful, a transfer service must recognize the
realistic limits of its business or functions. On the one hand, it cannot afford to accept trash
wastes. On the other, it would serve no unique environmental or public purpose by trying
to deal in regular flows of process by-products with recognized value which are commer-
cially established; and the organization would not be a waste transfer service, but instead
one of many competing industrial or chemical brokerages. A transfer agent can thus offer
useful activities in only a narrow sector of the chemical materials market—the scrap sector.
REQUIREMENTS FOR A TRANSFER
Transfers of scrap can occur only after many conditions have been established for both
generator and user. Each, depending upon his own business and perspective of what is
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important, must consider the following:
• Technical feasibility-the matching between the chemical and physical pro-
perties of available waste streams and the specifications of raw materials they
might replace.
• Economic feasibility—balancing of disposal costs foregone and raw materials
costs saved against the administrative and transport costs of implementing a
waste transfer.
• Institutional and marketing feasibility—values at risk, guarantees of supply,
guarantees of anonymity, and mutual confidence among generator, user, and
transfer agent.
• Legal and regulatory—potential transfer must be handled confidentially, be
allowed by law, and be unlikely to lead to liability suits.
POTENTIAL OPPORTUNITIES FOR WASTE TRANSFER
Accurate information about wastes being produced by industrial processes is difficult
and expensive to obtain. The first national estimate was compiled by EPA for Congress in
1973. More detailed national estimates by industry were developed in 1974-1976 by a
series of 14 EPA-commissioned studies, of which 11 were reviewed for this report.8"18
The quantity of manufacturing processing wastes generated in those industries amounts
to about 206 million metric tons/year on a wet weight basis. Those wastes having potential
value for transfer and reuse total about three percent, or about six million metric tons/year
(wet basis). In selected industries, however, the percentage can be much higher: up to 95
percent in Pharmaceuticals (SIC 2831), at least 25 percent in organic chemicals (SIC 286),
at least 10 percent in petroleum refining (SIC 2911), about 40 percent in paints and allied
products (SIC 285), and as much as 20 percent in small industrial machinery (SIC 355).
Wastes generally recognized as having components of potential value include:
• wastes having high concentrations of recoverable metals
• solvents
• alkalis
• concentrated acids
• catalysts
• oils
• combustibles (for fuel)
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Available data cover only about one-third of the manufacturing industries which might
participate in waste transfers. But they suggest that significant fractions of wastes from
other industries may have value which is not now being extracted. The easiest method for
testing the hypothesis would be an inexpensive transfer service for an industrial region
having many chemical plants, one or more petroleum refineries, and a mixture of other
industrial plants.
All industries which manufacture chemicals or use chemicals as raw materials are
potential clients of transfer agents. Potential participants in and beneficiaries of waste
transfer are concentrated in five industry groups:
• Pharmaceutical (SIC 2831 and 2833)
• Paints and allied products (SIC 285)
• Organic chemicals (SIC 2865 and 2869)
• Petroleum refining (SIC 2911)
• Small industry machinery (SIC 355)
Their wastes with the highest reuse and transfer potential include solvents, still bottoms,
and spent catalysts. In general, transfer will take place:
• from larger companies using continuous processes to smaller companies
using batch processes;
• from basic chemical manufacturers to formula tors; and,
• from industries with high purity requirements (e.g. pharmaceutical) to those
with lower purity requirements (e.g. paints).
In addition, almost any industry which needs fuels or cleaning solvents, for example, machine
shops and boat builders, is a potential user of scrap wastes. Moreover, reclaimers would
naturally become clients of a transfer organization in order to expand their business.
Most potential clients will demand reasonably large amounts of regularly-produced
scrap wastes. There is some potential for transfer of smaller amounts of wastes produced
occasionally, such as spilled or ruined batches of paint or other chemicals. While many
such wastes can be anticipated, their total tonnage, and hence their economic and environ-
mental impact on the area, is not likely to be large.
The economic gains from each potential transfer depend upon the waste generator's
savings on disposal costs and the user's savings on raw materials costs. The total gain must
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cover such transfer costs as transportation, administration, and possibly reprocessing.
Generally, scrap wastes valued at less than one cent per pound cannot be transferred eco-
nomically over a distance greater than SO miles.
A transfer organization which serves several industries has a greater chance of identify-
ing new transfer opportunities than does one serving only one industry. Thus, while the
chemical industry is expected to be the mainstay of any transfer service, participation by
customers of the chemical industries should be expected and encouraged. Such customers
or major users of chemicals include the textile, paper, wood products, printing, rubber
and plastics, leather, ceramics, machinery, and electronics industries.
No government agency, whether federal or state or local, whether a line agency or a
special-purpose authority, should try to operate or sponsor a waste transfer service directly.
The potential conflicts between their promotional and regulatory roles would render the
service unacceptable to its intended industrial clients, and thus largely ineffective. None-
theless, governments retain an indirect interest because of their public health and environ-
mental protection responsibilities. They can provide significant general support, notably
by encouraging waste inventory and market research studies, offering technical assistance
to organizers and sponsors of clearinghouses, encouraging generators to keep wastes separa-
ted and to analyze their characteristics, controlling disposal and thereby raising its costs,
and clarifying the questions and uncertainties which now surround legal liabilities of genera-
tors and handlers of hazardous wastes.
DIFFERENT ROLES OF A CLEARINGHOUSE AND AN EXCHANGE
When generators and users cannot satisfy all Requirements for a transfer by them-
selves, they may seek help elsewhere. Their first recourse is to informal networks of colleagues.
The second is to professional societies and advertising columns of technical journals.
The third is to an information clearinghouse, which serves the limited function of
linking interested trading partners. A clearinghouse transfers only information. It plays
only a passive role in the transfer process, because it leaves generators and users to negotiate
directly.
The fourth recourse is to a dealer, reclaimer, or materials exchange equipped to handle,
treat, and certify the characteristics of chemical materials. Such agents play an active role,
because they stand as intermediaries between generator and user. Of course, many companies
reclaim materials with well-recognized reuse value. Only a few small companies in Europe
and the United States now seem to be offering, or interested in offering, the full range of ser-
vices needed to transfer scrap chemicals.
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Most existing transfer organizations are operated by the chemical industry associations
or governments of European countries as wholly- or partially-subsidized information clear-
inghouses. Only a few waste transfer agents operate now in the United States; two follow
the European pattern, and two take more active roles in identifying matches and negotiating
transfers, although they do not physically handle the materials. Several small materials
exchanges were identified, one in Europe and the rest in the United States.
Information Clearinghouses
The functions of an information clearinghouse are very limited: to offer a central
point for collecting and displaying information, and to introduce interested potential trad-
ing partners to each other. They do not actively seek customers, negotiate transfers, set
values, process materials, transport materials, or provide legal advice. Any such functions
required to transfer a specific material are performed by generators, users, or middlemen
dealers.
The basic clearinghouse service is to receive offers of waste materials and requests
for scrap materials, list both anonymously, and publish the lists to members and interested
nonmembers of their sponsor association. Interested potential traders then contact the
clearinghouse, which refers them to each other, but takes no further active role in negotia-
tions which may lead to transfers. Most clearinghouses try to learn whether transfers in
fact were completed, but with only limited returns.
All existing information clearinghouses are subsidized by their sponsors. Some charge
nominal listing fees. An information clearinghouse requires little capital investment and can
be operated at an annual cost of between $10,000 and $90,000 per year, depending on
industry response and the degree of active promotion of its service. Financial self-sufficiency
could be achieved once the information transfer service has shown its usefulness to industry,
by building a large circulation and by setting realistic listing and subscription fees. A partici-
pating company could probably recover such fees with one successful transfer a year.
Experience of the older European clearinghouses suggests that about 10 percent of
scrap wastes listed will actually be transferred. Approximately one-half of those wastes
transferred went to waste brokers and reprocessing companies (i.e., solvent recovery, etc.).
The remainder were transferred to manufacturers.
The best sponsor for a clearinghouse is a local or regional industry association, or an
organization equally responsive to industry's needs, for three major reasons. First, to be
successful, clearinghouses must obtain the support of industry, especially plant managers
and engineers faced with waste disposal problems. Second, it is not likely that clearinghouses
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will be self-supporting until industry learns about the assistance which clearinghouses offer.
Finally, they must keep identities and waste generation data confidential.
Although information clearinghouses can assist industry, their importance should not
be overemphasized. When clearinghouses began in Europe, they received many listings. The
initial influx of wastes included many continuous waste streams. In most cases after the
first 12-to-18 months of operation, the number of listings declined. Presumably as plant
managers either negotiated transfers or decided that their wastes had no value in the current
market, they discontinued their listings.
However, in addition to facilitating transfers of specific wastes, clearinghouses provide
two useful general services. First, both their existance and listings of available wastes help to
educate industrial engineers about the increased opportunities for transferring and using
scrap wastes. Second, their series of lists can gradually build an inventory, incomplete but
also inexpensive, of industrial processing wastes.
In the next few years, several more clearinghouses may begin in the United States.
Even though subsidized clearinghouses can be operated in areas with a low density of indus-
try, they will facilitate a greater number and higher percentage of transfers in heavily-
industrialized areas, such as Houston, Chicago, and Philadelphia, having a large number and
variety of industries within relatively small geographic regions.
The scope of the typical clearinghouse in Europe is national, and in two cases interna-
tional. The likely American pattern will be a network of regional clearinghouses, with
arrangements to cooperate in cases in which the value of the scrap waste is great enough
to cover costs of transporting it between regions.
Materials Exchanges
The services of exchanges are more complex and expensive than those of clearing-
houses. Exchanges buy or accept wastes, analyze their properties, identify potential uses,
reprocess them as needed, and sell at a profit. They transfer information only as a courtesy
to clients or in the course of paid consulting services. Whereas a clearinghouse needs only a
part-time staff and office space, an exchange needs highly-competent technical, managerial,
and marketing skills, as well as storage and processing facilities.
Financial success depends upon brokering matches to completion. Because of trans-
portation costs, most transfers can occur within about SO miles only. Exchanges must, for
economic reasons, concentrate on those scrap wastes of most value and most likely to find
buyers. A materials exchange requires a capital investment of from $200,000 to $350,000,
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and annual operating costs are expected to fall in the range of $50,000 to $ 150,000 per
year. Economic analysis indicates that a materials exchange service is not likely to become
profitable, unless offered together with a range of other established services to chemical
industries, such as handling surplus chemicals.
NEXT STEPS NEEDED TO DEVELOP CLEARINGHOUSES
1. Detailed data are needed from one or more operating clearinghouses in
order to guide the creation of clearinghouses elsewhere. Such data should
include listing activity, costs, and manpower used, and should not over-
look the value of contributed volunteer professional time. These operating
data must be collected without impairing the anonymity guaranteed to
listers.
2. Although the role of the public sector must be only indirect, it is nonetheless
important in providing support services, notably by encouraging studies of
operating experience and inventories of available wastes.
3. Emphasis should be given to the needs of potential scrap users. Waste gener-
ators quickly recognize the potential usefulness of the information clearing-
house service. Moreover, success of the waste transfer concept depends
ultimately upon the demands of users of acceptable scrap wastes. Examples
of new recycling technologies and successful new types of transfers should
be brought to the attention of potential scrap users through technical journals
and professional societies.
4. Information about the waste transfer concept and practice should be dissem-
inated widely, to satisfy the interest which is now so evident. Useful techni-
ques include publications, regional conferences, and technical assistance.
Various institutional and legal arrangements for clearinghouses should be
examined and perhaps tested.
5. A definitive study of legal liability issues is needed in order to clarify the
many questions, and to dispel some of the fears, which now present major
barriers to participation in waste transfers by generators and potential users.
Topics addressed should include transfer of title to wastes, residual liability,
variations in law and practice among states, and developing trends both in
legislation and in court decisions.
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6. One or more subsidized clearinghouses should be encouraged in order to:
• demonstrate the effectiveness of the transfer concept,
• identify the existence of transfer opportunities,
• generate detailed operating data,
• educate potential transfer participants in industry, and,
• identify the potential for financial self-sufficient clearinghouses.
7. A financially self-sufficient clearinghouse should be designed and demon-
strated over a period of two-to-three years. Various combinations of rela-
ted services and various forms of institutional sponsorship should be examined.
8. Materials exchange services should be offered and operated only by the
private sector. But the public sector should provide general encouragement
through technical and information services.
10
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I. INTRODUCTION
PROBLEM AND THE EPA RESPONSE
The U.S. Environmental Protection Agency (EPA) estimated in 1976 that 344 million
metric tons (wet basis) of industrial processing residues are generated annually in the United
States. This is almost twice the quantity of municipal wastes and more than thirty times
the amount of sewage sludge generated annually.1 *
As ocean dumping is decreased and water pollution and air pollution controls are
tightened, these materials will increasingly be concentrated into solids and sludges for dis-
posal on land. EPA estimates that 25 million tons of hazardous wastes are annually disposed
of on land. Furthermore, EPA projects that this quantity will double during the next
decade.2
Section 212 of the Solid Waste Disposal Act as amended required EPA to investi-
gate the problem of hazardous wastes and study the concept of national disposal sites
for storage and disposal of these materials.3 The EPA did this, but recommended that any
action on a national disposal site system be made part of a larger strategy based on improved
regulatory controls.4
The EPA's report was submitted to the President and the Congress in 1973. It con-
cluded that:
• Current practices of hazardous waste management are inadequate.
• This is because adequate treatment and disposal are expensive and, except
in the case of radioactive wastes, are not mandated by law.
• What is lacking is appropriate legislative authority over land disposal of
non-radioactive materials. Existing authorities are adequate to protect the
air, surface waters, and probably ocean waters from hazardous materials,
but not land and groundwaters.
• The technology of hazardous waste management is generally adequate.
• A national disposal site system would be expensive, requiring investments
of about $940 million and annual operating costs of about $620 million.
'References are listed at the end of the report.
11
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• The private sector is capable of assuming most or all of the responsibility
for hazardous waste management, and a small private-sector hazardous waste
management industry has in fact begun to develop.
The strategy recommended in the report is first to establish appropriate regulatory controls,
then to monitor the response of the private sector, and only later to take further govern-
ment action if that is found necessary.5
EPA currently proposes the following order Of preference and sequence of steps for
handling industrial waste streams:6
(1) Minimize the amount of waste generated, by modifying the industrial
process involved.
(2) Concentrate the waste (through evaporation, precipitation, etc.) at the
source to reduce handling and transport costs.
(3) If possible transfer the waste as is to another industry which can use it
as a feedstock.
(4) When a transfer "as is" is not possible, reprocess the waste for material
recovery.
(5) When material recovery is not possible,
(a) Incinerate the waste for energy recovery and for destruction of hazard-
ous materials.
(b) If the waste cannot be incinerated, detoxify and neutralize it through
chemical treatment.
(6) Use carefully controlled land disposal only for what remains.
The present study is concerned with Step 3 and to some extent Step 4. It explores the
feasibility of the concept of "waste exchange" and outlines the requirements for success-
ful waste transfer operations.
The study is intended to further the strategy recommended in the 1973 EPA report
by outlining one way in which industry can reduce its waste disposal needs. The study
is also responsive to the goals of the National Academy of Science, whose 1966 study of
waste management identified recovery and re-use of pollutants as the strategy with highest
probable long-term utility in alleviating the nationwide pollution problem.7
12
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OBJECTIVES AND FOCUS OF THIS STUDY
This study has two major objectives: (1) to assess the feasibility and potential impact
of transferring wastes in the United States, and (2) to provide guidelines for the organization
and operation of a waste transfer organization. The conclusions are based on a review of the
activities of existing transfer organizations; analysis of the technology, economics, and insti-
tutional aspects of waste transfer; and extensive discussion of the concept with industries
generating and potentially using wastes.
This report will interest primarily existing and potential operators of waste transfer
services. The main questions addressed are:
• How do existing transfer organizations operate, using what procedures,
and with what results?
• Where can such an organization operate best?
• Who are the most likely clients? What are their needs? How do they behave?
• How can clients best be identified, contacted, and attracted?
• Will their demand for transfer services grow, or at least remain stable over
time?
• What proportion of transferable wastes are likely to find exact matches—that
is, find uses without chemical treatment?
• What skills and resources are required to run a transfer organization success-
fully?
• What are the economics of transferring wastes?
• What legal problems may arise?
• What competition might a transfer service face?
Other readers of this report will include potential sponsors or subsidizers of transfer
organizations, generators of wastes, and potential users of wastes having reuse value.
13
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PART ONE
BASIC CONCEPTS AND DATA
-------
II. TRANSFERRING WASTES: CONCEPTS AND REQUIREMENTS
Like most new subjects, this one is developing its own special vocabulary, in which
many terms are used with various and confusing meanings. Among the basic tasks typically
needed in a new field, just as important as collecting and analyzing data, is to develop
and standardize its terms. When each term used in this report first appears in the text.
the rationale for the choice and definition is stated; the meaning is also given in the Glossary.
The term "exchange" is now being applied quite broadly, as in, "After the exchange
opens, many companies may wish to exchange their wastes." It is used to describe organi-
zations ranging from publishers of information lists to reprocessing companies, and it is
applied to all types of inter-industry movement of wastes.
Inter-industry transactions rarely take the form of exact swaps, in which Plant A gives
its waste to Plant B and receives Plant B's waste in return. Moreover, these transactions are
not necessarily made for profit or even for money; in fact, the generator may have to give
the waste away or pay the user to accept it. Therefore, it is useful to adopt a term broader
and more neutral than "exchange." "Transfer" was chosen, because in common usage it
includes any kind of movement from one owner or location to another.
To refer genetically to the "exchange" organization, whether its role is that of clear-
inghouse or of broker, this report uses the terms "transfer agent," "transfer service," or
"transfer organization." This report identifies two distinctly different types of transfer
organizations, offering distinctly different types of assistance in transferring wastes; the
common term "waste exchange" describes only one of these.
THE CONCEPT OF WASTE TRANSFER
The concept of waste transfer is analogous to that of the purchase and re-use of indus-
trial by-products: an industrial process generates a material which is not the principal
product and is not usable by the generating company, but which can economically be
told to, and used by, another company. The difference is that a by-product's recognized
value generally justifies the costs of recovery, handling, and transportation, while the
recognized value of a waste generally does not. So long as disposal is easy and inexpensive,
it is the economically preferred course. Transfer to another industry is economically attrac-
tive only when disposal presents major problems. This, of course, will be the case increas-
ingly as disposal is subject to tighter restrictions and as its cost rises.
While some transfers of industrial wastes are accomplished directly through the initia-
tive of either the company generating the material or the company seeking it, large-scale
15
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realization of the concept requires a third party. This is true mainly because the uses in
question are not well established, generators and potential users often do not know about
each other, and companies are often reluctant to reveal information about their processes
and materials. An intermediary is needed to enable generators and users to find each other
while at the same time protecting confidential information until a promising match is iden-
tified. Still more transfers can be made if the third party is able to offer additional services,
such as assistance with negotiations, consultation about uses and reprocessing requirements,
or actual handling of the materials.
A transfer agent does not operate in a vacuum, but instead within a complex economic
and technical environment. It is therefore important to understand the structure of the
market for chemical materials. In its basic form, the market consists of three layers:
• Primary or Raw Materials
• Processing By-products
• Wastes
The top layer of raw or virgin materials includes the most valuable materials. It includes
raw materials from nature, for example sulphur or salt. It also includes virgin manufactured
materials, for example plastics, which manufacturers need for their processes and thus view
as primary materials.
The middle layer of processing by-products includes materials which are often less pure
and less valuable than primary materials. Common examples are solvents from pharmaceuti-
cal and paint processing, slag from steel making, and rejected lead plates from lead acid
batteries. These examples have recognized value as material inputs for some manufacturers.
But their values are set, of course, by supplies of and demands for competing raw materials.
When primary materials are plentiful and cheap, processing by-products may have little
demand, and thus little value in commerce.
The bottom layer of wastes includes materials generally viewed as having no value
whatever. In the eyes of their manufacturers, they should be disposed.
This description of the three-tier market is, of course, a simplified and static summary
of many relationships. Closer examination is needed of materials in the bottom category of
wastes.
Waste: Scrap or Trash?
The term "waste" requires clarification, because it has two meanings which are related
but distinct. First, it can refer to damanged, defective, or residual material resulting from an
industrial process; such materials typically retain some or much of their original value.
Therefore, this report refers to them as "scrap waste" or "scrap."
16
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Second, in everyday usage the term "waste" can refer to many kinds of refuse; such
materials have no value, and can only be thrown away. Therefore, this report refers to them
as "trash waste" or "trash."
However, the confusion in common usage of "waste" arises often because the distinc-
tions between "scrap wastes" with some value and "trash wastes" with no value are not
immediately obvious. Often, what is considered trash by one person is considered useful
by another. For example, the process of manufacturing textiles produces irregular trimmings
and scraps of materials which cannot be reprocessed for sale as finished cloth; but they can
be used to wipe oil and dirt from machinery. Another common example is the scrap from
the metal-working industry, consisting of shavings, scraps of metal, and off-specification
parts left over after processing, which find their way to secondary uses-within the same
plant, at other plants within the same company, or at other companies via the established
scrap metals market.
The distinction between scrap waste and trash waste is important because it is central
to both the economic and the technical viability of a waste transfer service. Economically,
if a material is truly trash, with no further value whatever, then it will not attract a buyer
or even an acceptor; thus, no transfer will result. If an organization accepts such materials,
it is not really a transfer agent, but instead a disposal center.
The distinction between scrap and trash therefore modifies the first description of the
three-layer market for chemical materials to appear as follows:
• Primary or Raw Materials
• Processing By-products (Recognized Value)
Scrap Wastes (Limited or Potential Value)
Wastes Trash Wastes (No Value)
The discussion thus far has assumed that relations among materials in the materials mar-
ket are static. But, of course, their value and positions within the market can change. Many
process residues in the chemical industry were viewed initially as wastes with no apparent
value; then, as uses for which buyers would pay were identified and gained acceptance,
they rose to become established by-products with recognized value. Engineers designing
new industrial processes routinely examine the residues to seek further uses as by-products.
In recent years, both stricter waste disposal regulations and rising prices of raw materials
have made it more attractive economically for companies to research further uses for the
valuable components of their waste. Large companies with many processes and skilled
chemical engineers are likely to find those recycling opportunities which exist, often within
their own manufacturing facilities.
17
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However, even engineers in large national companies cannot solve all waste problems.
Moreover, technical discoveries of new ways to find value in scrap do not occur in all com-
panies at once. Also, medium-sized or small companies typically lack the time and skills to
find reuses for their wastes. Although engineers in different companies do meet at profes-
sional societies to compare problems and share solutions, these informal personal networks
are by nature limited in scope and uncertain in operation. Therefore, needs exist which a
formal transfer agent can satisfy. Indeed, the difficulties which companies face in distin-
guishing between scrap wastes and trash wastes offer the opportunities for waste transfer
agents to provide useful technical and economic services.
The Transfer Agent's Functions
The transfer agent works in the fuzzy and shifting boundary area between wastes and
by-products. If successful, the transfer agent will gradually identify what can be described
as a "scrap chemicals market," a small but distinct market sector containing materials which
are more valuable than trash but less valuable than established by-products. The transfer
agent may also move some scrap wastes with uncertain value into the category of by-
products with recognized value.
The function of the transfer agent, therefore, is to identify and help bring together
the generator, who views the waste as trash without further value, and the user, who views
it as scrap with reuse value. In this process, the transfer agent identifies scrap materials of
interest to both generators and users.
To be economically and technically useful, a transfer service must recognize the
realistic limits of its business or functions. On the one hand, it cannot afford to accept trash
wastes. On the other, it would serve no unique environmental or public purpose by trying
to deal in regular flows of process by-products with recognized value which are commercially
established; and the organization would not be a waste transfer service, but instead one of
many competing industrial or chemical brokerages. A transfer agent can thus offer useful
services in only a narrow sector of the chemical materials market—the scrap sector.
REQUIREMENTS FOR A TRANSFER
Before describing the transfer system and how it operates within the materials market,
it is necessary to recognize the elements of successful transfers. Transfers of scrap wastes,
like any other business transaction, can occur only after certain conditions are satisfied for
both generator and user. These needs may be divided into four basic groups:
(1) Technical—The potential reuse requires that the scrap have specific char-
acteristics.
18
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(2) Economic-Since both parties must gain from the transaction, relations
among various costs and prices must be attractive.
(3) Marketing and Institutional—Once technical and economic factors are
favorable, such matters as knowledge of availability and need, confiden-
tiality, and correct timing become critical.
(4) Legal and Regulatory—Potential transfers must be allowed by law, must be
handled confidentially, and must be unlikely to result in liability suits.
Although the requirements are many, they cannot be satisfied at random, but rather
only in a logical sequence. Table II-1 shows the many requirements grouped into four
categories. Although all four categories are necessary, their ranking follows the sequence
dictated by the nature of the scrap material and its possible uses. In judging the potential
of a scrap material for transfer, there is no point in even considering its economic potential
and marketing likelihood before knowing that a technical match is possible.
1. Technical Compatibility
To see value in a scrap waste, a potential user must know that the material will match
the input needs of his process. This specifies so many barrels or gallons or tons and certain
physical and chemical properties. A major factor determining technical compatibility is
purity. The transferability of a scrap waste from one process to another may be hindered
by impurities, or even by fear of unknown impurities which may damage the user's process.
The problem of impurities suggests a natural hierarchy which defines the direction
that transfers are most likely to take. As shown in Figure II-1, the hierarchy is defined
in two ways, by type of industry and by type of material.
Different industries in general have different purity requirements due to the nature
of their products and end uses. Grouping industries in order of decreasing purity require-
ments leads to the following order:
(1) Producers of fine chemicals—for example, Pharmaceuticals, photographic
chemicals, and some organics;
(2) Producers of chemicals—bulk organics and most inorganics;
(3) Formulators—blenders of paints, cleaning solutions, etc.;
(4) Hardware manufacturers—machine parts, boxes, etc.
19
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TABLE 11-1
REQUIREMENTS FOR A TRANSFER
SCRAP WASTE WITH POTENTIAL VALUE
1. TECHNICAL COMPATIBILITY
2. ECONOMIC GAINS
Quantity fits user's need?
Physical properties right?
Chemical characteristics right?
Pure enough?
Generator's transfer cost less than disposal costs?
User's transfer cost less than raw materials costs?
Gains enough to cover transportation costs?
Gains enough to cover analysis, treatment, and other
transfer costs?
3. MARKETING FACTORS
4. LEGAL/REGULATORY FACTORS
• Generator knows of user's need and specifications?
• User knows of scrap's availability and characteristics?
• Mutual confidence exists between parties?
• Generator willing to have waste reused?
• User willing to accept and reuse scrap?
• Timing right for both parties?
• Confidentiality of data assured?
• Legal liability limited?
• Transfer not illegal?
• Data confidential, insulated from government?
i
SUCCESSFUL TRANSFER TO USER
20
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Type of Material
Fine
Chemicals
Chemicals
Formulations
Hardware
Manufacturing
Basic Raw
Materials
Very High
\\
High \
Moderate
Low
Additives
High
\
Significant
\\
\\
More ModerateX
>>
Lower
Process Fluids
Low To Moderate
Low To Moderate
Low
\,
^
Lowest
1
•o
&
Source: Arthur D. Little, Inc.
FIGURE 11-1 HIERARCHY OF PURITY REQUIREMENTS
21
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First, fine chemicals must be pure; if they are not, manufacturers risk paying significant
penalties. Pharmaceuticals are consumed by humans, and thus a particularly high premium
is placed on their purity. Photographic chemicals and some organic chemicals used as raw
materials for other processes simply do not perform their intended function if impure.
Impurities may cause undesirable side reactions which ruin the product (e.g., the photo-
graphic print) or poison the catalyst used in a subsequent process. Second, bulk organic
chemicals and most inorganics are subject to similar but less strict requirements. Third,
formulations, for example paints and cleaning solutions, are generally used in less sensitive
applications. Thus, their performance is less likely to be affected by impurities. Fourth,
purity requirements for manufactured substances are the least strict. The nature of these
products, for example machine parts or boxes, tends to preclude incorporation of the
impurity and hence degradation of product function. In summary, moving down the list,
there is diminishing need for chemical purity and therefore increasing willingness to use
scrap wastes as replacements for raw materials.
Different types of materials are required by each type industry. These can be broadly
classified as follows:
(1) Basic raw materials—the substances or inputs from which the main products
are made;
(2) Additives—materials used in small amounts to produce or enhance specific
product characteristics; and
(3) Process fluids—materials not incorporated into the product but used in its
production (for example, cleaning solutions and heat transfer media).
Purity requirements generally also decrease down this list for the simple reason that the
products include progressively fewer materials. Therefore, within each industry, wastes are
likely to be transferred down the list; for example, the scrap waste from a basic production
process may become a process fluid input to another process.
These two lists, when combined in Figure II-l, show that purity requirements are
highest for raw materials in the fine chemicals industries. They are lowest for process fluids
in the manufacturing industries. Exceptions exist, of course. But this two-dimensional
hierarchy is useful in identifying the natural market for a transfer service. If the organiza-
tion is to be most effective, it must cover a broad range of industries. For example, even
though manufacturing industries might not normally participate in transfers of scrap chem-
icals, they should not be ignored completely. Moreover, within an industry group, the
hierarchy of purity requirements helps to focus the search for likely users of a specific
scrap waste material.
22
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In the ideal case, technical compatibility between the scrap waste and the user's process
is perfect, and the scrap can be transferred "as is". But typically the technical match is less
than perfect. In these cases, the scrap waste offered by a generator must be changed to fit
the needs of a user. The change may be physical, for example by consolidating several small
lots. It may be chemical, for example by reprocessing to remove impurities. Such changes
may be made by the user, who knows his own needs best. But they may also be made by
the transfer agent, if it has facilities for treatment, or by a reprocessing company.
2. Attractive Economic Gains
The economic requirements for a transfer are obvious. The most fundamental is that
the transfer must be advantageous to the user: the net cost of the scrap material must be
lower, at the point where he needs it as a resource input, than that of his alternative feed-
stock. Likewise for the generator, the transfer must be attractive: ideally, the generator
wishes to gain by selling it; but more likely he will be content to reduce his disposal costs
by giving it away, or by paying a net transfer cost less than his normal costs of disposal.
The critical costs to both generator and user are net. If the transfer requires such costs
as transportation and some form of treatment, these may be paid by either generator or
user or shared between them. But, unless one or both choose to subsidize the transfer,
the net transfer costs they will agree to pay must be lower than their alternative disposal or
raw material costs.
3. Marketing Factors
Once technical and economic feasibility seem probable, several marketing factors
become important. Generator and user must of course know of each other's need. In the
primary and by-product sectors of the market, this linkage function is facilitated by regular
brokers.
But in the waste sector, contacts are made much less easily. For example, although the
user must know the scrap's technical characteristics, his need is typically difficult to satisfy.
Generators usually have no incentive to analyze their wastes, which are often chance mix-
tures of residues from several processes. Even where an analysis exists, generators are not
eager to broadcast such data, because such "chemical footprints" might provide useful
clues about new products to competitors.
A factor of great importance is mutual confidence. Generators, especially large com-
panies, hesitate to release scrap wastes to others for fear of possible injury to their reputations
23
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for quality; they generally will not release the odd batch of even slightly below-standard
product. Similarly, potential users, especially those with high purity needs, hesitate to
accept a scrap waste just to save a few dollars where its uncertain impurities might ruin a
large production run worth far more money: thus, the user is most interested in the gen-
erator's technical reputation, integrity, and willingness to guarantee the scrap's technical
characteristics. Mutual confidence is influenced not only by professional reputation, but
also by Financial strength.
Another factor, more elusive but still significant, concerns attitudes. One influence on
potential partners to a transfer is opportunity cost-those activities which could otherwise
be pursued profitably if engineers were not worrying about transferring scrap wastes.
Because transfers present unusual problems, and thus new risks, those engineers and man-
agers who tackle them must be motivated partly by a philosophy that their efforts may
benefit society and the environment even if not measurably their own company. Several
engineers cite the prevailing "philosophy of waste" as an important barrier to early success
of the concept of transferring wastes.
Yet another factor is accurate timing. Generator and potential user must know of their
needs at just the right time, when economic conditions, especially the costs of user's raw
materials, are favorable.
The number and variability of these market factors show that generator and user must
know about each other's needs in detail. When they do not know each other directly, they
need the services of a transfer agent.
4. Legal and Regulatory Factors
A major need for both generator and user is to feel free from legal liability arising from
a transfer. This often-expressed fear explains the generators' reluctance to release wastes to
other organizations; should a third party suffer injuries possibly caused by such material,
both generator and user, especially if they are large companies with known financial strength,
might become tempting targets for suit. Generators also worry that transferring wastes may
increase their exposure to scrutiny by regulatory authorities.
These legal and regulatory factors differ from most of the technical, economic, and
marketing factors in that they are beyond the direct control of generators, users, and
transfer agents. But these factors, however indirect, still have influence. Disposal costs to
generators are largely a function of how stringently landfills are regulated. Freight rates may
be discriminantly higher for other-than-raw materials than for competing primary materials,
and thus a burden to the whole recycling industry.
24
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III. POTENTIAL OPPORTUNITIES FOR WASTE TRANSFER
NATIONAL WASTE STREAM DATA
Accurate estimation of the likely market opportunities for transfer agent services
requires data about wastes being produced by industrial processes. But such data are diffi-
cult and expensive to obtain. The first national estimate was compiled by EPA for Congress
in 1973.4 More detailed national estimates were developed by a series of industry studies
from 1974 to 1976 commissioned by EPA.8"18 Several states are now conducting inven-
tories, but results are not yet available. Detailed data at the level of a Standard Metropolitan
Statistical Area (SMSA) or an industrial region, such as northern New Jersey or the Gulf
Coast, do not exist; instead, estimates for a locality or SMSA can only be derived from
national estimates. These national estimates are summarized in the following paragraphs and
tables; details about data collection and forecast methods appear in Appendix E.
Table III-l summarizes for the United States the total quantity of manufacturing pro-
cessing wastes generated in a number of industries studied for EPA.8"18 The total quantity
for these industries is about 206 million metric tons/year on a wet basis and 147 million
metric tons/year on a dry basis. Table 111-2 summarizes the types and quantities of known
wastes from the industries listed in Table III-l which might have potential value. This
amounts to about 6 million metric tons/year, or about 3 percent of the total. This is an
order-of-magnitude estimate, based on the best available waste stream data. The data, how-
ever, were obtained primarily to estimate the magnitude of wastes requiring disposal and
the hazards that such wastes might present in landfill. In order to estimate transfer potential
accurately, the wastes would have to be characterized in far greater detail, preferably on a
plant-by-plant rather than on a national-average basis.
Table III-2 lists those wastes reported in EPA's industry studies and generally recognized
as having components of potential value, namely:
• wastes having high concentrations of recoverable metals,
• solvents
• alkalis
• concentrated acids
• catalysts
• oils
• combustibles (for fuel)
Information developed and reported in those studies was based upon typical national practices.
25
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TABLE 111-1
MANUFACTURING PROCESS WASTES FROM SELECTED INDUSTRIES,
1975 (U.S. TOTALS)
SIC Industry
3691 Storage Batteries
3692 Primary Batteries
281 Inorganic Chemicals
286 Organic Chemicals
2879 Pesticides
2892 Explosives
3471 Electroplating
2851 Paints and Allied Products
2911 Petroleum Refining
283 Pharmaceuticals
33 Primary Metals
226 Textiles Dyeing and Finishing
30 Rubber and Plastics
3111 Leather Tanning and Finishing
355 & 357 Special Machinery
367 Electronic Components
2992 Waste Oil Re-Refining
TOTALS
Total Watte Stream (metric tons/yr.)
Wet Basis
| 10,000
68,000.000
| 7,000.000
5.276.000
396,000
1,300,000
1,218.000
117,193.000
2.099,000
3,254,000
203,000
366,000
97,000
57,000
206,469,000
Dry Basis
-
40,000.000
2,200,200
909,000
370,000
600,000
244,000
100,165,000
310,000
2,007,000
64,000
305.000
68,000
57,000
147.299,200
Source: U.S. Environmental Protection Agency, Hazardous Waste Management Division.
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TABLE 111-2
POTENTIALLY TRANSFERABLE WASTES FROM SELECTED INDUSTRIES
(U.S. TOTAL)
SIC
3692
286
2879
2892
3471
2851
2911
283
33
3111
355
357
Waste
Reject cells
Wastewater treatment sludge
! Chlorinated hydrocarbon
liquid heavy ends
Other still bottoms
Degreaser sludges
Spoiled paint or lacquer
batches and wash solvents
Coke fines
FCC catalyst fines
Halogenated solvents, other
solvents, tars, still
bottoms, carbon filter aid
Still pickle liquor
Sludges and trimmings
) Solvents, metals, oils, acids,
( and alkalis
Potential Value
Metal recovery (17-70%
Zn. Hg. Pb. Cd)
Metal recovery
(40% Cr)
Degreasing solvents
Fuel
Solvent recovery
Solvent recovery,
upgrading
Fuel
Catalyst recovery
Degreasing solvents;
Cleaning or paint
solvents; fuel
6% H2SO4 with metals
Leather composites
Recovery and reclamation
Quantity
(Metric tons/yr..
Wet Basis)
1.200
25
247.000
1,600.000
105,000
174,000
13,000
117.000
160,000
3.500.000
12.000
73,000
Percentage of
Total Waste
Stream Lilted
in Table II 1-1
12
<1
3.5
22
2
44
1
9
95
3
6
20
Total
6.000.000
Source: Arthur D. Little, Inc., estimates.
27
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However, specific plants may generate wastes with characteristics different from those
reported as "typical". Furthermore, the studies were designed to determine the "hazardous"
components, rather than the physical and chemical characteristics, of wastes. Stream descrip-
tions were not sufficiently detailed to permit definitive judgments about their potential for
waste transfer.
Nonetheless, the data suggest that opportunities for waste transfer exist in many indus-
tries. For example, up to 40% of paint industry wastes, 25% of organic chemical waste, 20%
of machinery manufacturing waste (on a wet weight basis) might find markets with the aid
of effective transfer agencies. Furthermore, available data cover only about one-third of the
manufacturing industries which might participate in waste transfer. The results lead to the
hypothesis that significant fractions of wastes from other industries may have value, and
therefore transfer potential, which is not now being extracted. The easiest mechanism for
testing the hypothesis would be an inexpensive transfer service for an industrial region hav-
ing many chemical plants (SIC 28), one or more petroleum refineries, and a mixture of
other industrial plants which use chemicals as raw materials.
The EPA industry studies showed that resource recovery by internal recycling is widely
practiced. In the lead-acid battery industry, for example, there is in most plants a high
degree of recovery via internal recycling. In other sectors of the battery industry, rejected
nickel-cadmium, cadmium-silver oxide, and mercury cells are sent to metal reclaimers; but
disassembly of the cells and separation of the metal is difficult. In the electroplating, pharma-
ceutical, and paint industries, waste solvents are generally recovered, in larger plants by their
own on-site facilities and in small plants by outside contractors. The metals industries have
continuing programs to explore ways to reclaim metals of value. The organic chemical
industry continually seeks ways to increase the percentage of raw materials in saleable
products, and thus to decrease the proportion of waste; it recovers solvents when econom-
ically feasible. The petroleum refining industry sells a large fraction of its coke fines as fuel,
and sends much of its spent catalyst out for reprocessing. On the other hand, our contacts
with plant managers suggest that even this generally-established recycling practice has not
been adopted by every plant within the industry. Hence, it should be possible to expand
transfer opportunities.
Most of the well-documented large process wastes from major industries are trash at
this time; uses have been sought for years, but with little success; thus, the probability that
a transfer agent could identify customers to accept a significant portion of these wastes in
the near term is very low. However, relatively small quantities of other wastes have poten-
tial as scrap, namely:
• waste solvents,
• alkalies,
28
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• wastes high in metal content,
• concentrated acids, and,
• catalysts.
Many of these wastes are not now reclaimed or reused, and thus are excellent candidates
for transfer.
In summary, the exact quantity available of transferable wastes is unknown. But the
above analysis of national data for a limited number of industries suggests that it might be
at least three percent of the nationwide total of processing wastes now being generated and
disposed into the environment.
INDUSTRIES AND WASTES SUITABLE FOR TRANSFER SERVICES
All industries which manufacture chemicals (SIC 28 or 29) or which use chemicals as
raw materials (e.g. SIC 22—textiles, 24—wood products, 26—paper, 27—printing, 30—rubber
and plastics, 31—leather, 32—ceramics, 33—metals extraction, 34—metals products, 35—
machinery, and 36—electronics) are potential clients of transfer agents. Such industries
generate chemical wastes with possible material or energy value that might be recovered for
use in other parts of the U.S. economy. Such industries also purchase virgin chemicals, and
might be willing to substitute scrap chemicals if their existence and availability were known.
The close relationship between the chemical industry and most of the Europen trans-
fer agencies is not accidental. Similarly, transfer agents in the U.S. could not be successful
without substantial participation of companies in the chemical industry. Their initial con-
tacts, mailings, and advertising should be concentrated in such chemical manufacturing
groups as:
• Pharmaceuticals (SIC 2831 and 2833)
• Paints and allied products (SIC 285)
• Organic and chemicals (SIC 2865 and 2869)
• Petroleum refining (SIC 2911)
• Small industry machinery (SIC 355)
Waste streams from these industries with the highest reuse and transfer potential as scrap
include solvents, still bottoms, and spent catalysts.
In general, transfers among these industries and to others that use chemicals in manu-
facture or waste treatment will take place:
• from larger companies using continuous processes to smaller companies using
batch processes;
29
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• from basic chemical manufacturers to formula tors; and.
• from industries with high purity requirements (e.g., pharmaceutical) to those
with lower purity requirements (e.g. paints).
In addition, almost any industry with a need for fuels or cleaning solvents, (for example
machine shops and boat builders) is a potential user of scrap wastes. Reclaimers would
naturally become clients of a transfer organization, as a means for scanning the marketplace
and for expanding their businesses.
Most potential clients will demand reasonably large amounts of regularly-produced
scrap wastes. There is also some potential for transfer of smaller amounts of wastes produced
occasionally, such as spilled or ruined batches of paint or other chemicals. While a signifi-
cant number of wastes of this type can be anticipated, their total tonnage, and hence their
economic and environmental impact on the area, is not likely to be large.
Transfers may occur within an industry or between different industries. Is the impact
of a transfer organization likely to differ between these types of transfer? Transfers within
an industry are favored by common knowledge concerning technology, products and raw
material requirements and by the likelihood that potential transfer partners already know
each other. However, plants within an industry are more likely to have common wastes and
common raw material requirements; thus, if a waste cannot be used in-house, it is not likely
to be useful to another plant in the same industry.
Plants in different industries may not know each other or be aware of each other's
raw material requirements and waste streams. The diversity between plants opens ground
for potential transfers, if the parties can be brought together or made knowledgeable about
each other.
It seems therefore that a transfer organization which cuts across industry lines has the
greater chance of opening up new transfer opportunities than does one acting only within
one industry. Thus, while the chemical industry is expected to be the mainstay of any trans-
fer service, participation by those who now purchase raw materials from the chemical
industry should be expected and encouraged.
The largest volumes of scrap wastes are in sludges (often waste-water treatment sludges)
from a variety of industries, and slags from the ferrous metals industries. But transfer of
these materials is not practicable because of their volume, diverse contents and intractable
physical form. It is conceivable that some of the constituents of these sludges, notably the
heavy metals, could be reused if they could be kept out of the sludge. This can be accom-
plished only if the waste streams in individual plants could be segregated near their point
of origin and dealt with separately.
30
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A SAMPLE AREA: PHILADELPHIA
In order to examine potential opportunities for waste transfer in more detail than is
possible using national estimates, particular attention was given to one Standard Metropolitan
Statistical Area. SMSAs are designated by the U.S. Bureau of the Census to standardize
urban areas for purposes of consistency and comparisons; an SMSA's boundaries are drawn
to include both a core city and its natural economic suburbs and hinterlands. A number of
areas with heavy concentrations of industries producing process wastes, including the Gulf
Coast, the Great Lakes, St. Louis, and San Francisco Bay, offer potential for transfer services.
The Philadelphia SMSA was chosen for this study for several reasons. The major one
was that its industrial economy is both large and highly diversified, containing representa-
tives of 98% of all Standard Industrial Code (SIC) categories. It is also near other SMSAs
with large industrial concentrations, especially in chemicals. It is a bi-state area, and both
Pennsylvania and New Jersey have made notable efforts in recent years to regulate disposal
of industrial wastes. Philadelphia offers a variety of institutional forms.
Philadelphia's waste transfer potential was estimated in two ways. First, the volume of
scrap wastes was derived from the national industry studies and other data. Second, inter-
views with 53 plant managers produced data about their needs to offer and to obtain scrap
wastes, and about their willingness to consider using a transfer service. Detailed methods
and results are reported in Appendix C.
Potential Estimated from Available Data
The types and quantities of Philadelphia SMSA wastes as derived from national data
are shown in Table II1-3. The scaling factor used for each industry was its employees in
Philadelphia as a percentage of its employees nationally in 1975. For example, the pharma-
ceutical industry (SIC 2831 and 2833) had 18,500 employees nationally, and 312 in Phila-
delphia, or 1.7%; thus, the tonnage of transferable pharmaceutical wastes produced nationally,
160,000 metric tons/year, was reduced by 98.3% to derive the tonnage potentially trans-
ferable in Philadelphia, 2700 MT/yr. These data are not highly accurate, of course, due to
uncertainties in local employment and the inherent variability in waste generation rates
related to numbers of employees. However, these data are the best available, and allow an
initial estimate of the magnitude of the market for transfer services.
Table III-3 summarizes the wastes generated, almost 4,000,000 metric tons/year, of
which about 6 percent or about 249,000 metric tons/year, are potentially transferable.
Included in this 6 percent are solvents of several sorts, which have potential reuse value if
31
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TABLE 111-3
WASTES GENERATED AND POTENTIALLY TRANSFERABLE, PHILADELPHIA SMSA
(1)
(2)
(3)
(4)
(6)
Potentially Transferable
SIC
Code
285
2865
2869
2833
3312
332
281
3471
3691
Industry
Paint and allied
products
Cyclic crudes and
intermediates
Other organics
Pharmaceuticals
Iron and steel making
Iron and steel
foundries
Inorganic chemicals
Electroplating
Storage batteries
Types of Waste
Paint sludges and
solvents
Still bottoms, tars
Still bottoms, tars
Solvents, bottoms.
fllter-eMs, toxoids
Slags, sludges and
pickle liquor
slags, sludges
Sludges
Sludges
Sludges, Pb com-
pounds
Total
Tonnage
WntVT}
4,800
1,650
70,700
2.900
3.490,000
100,600
109.000
2.900
4,000
Potofrtwlly Wwtfl in tn0
Transferable Wastes largest plant
(MT/yr) (X of Col. 4) (MT/yr) (X of Col. 6)
2.100 45 700 30
1.650 100 600 35
70.700 100 28.500 40
2.700 95 1.620 60
163,000 5 17.300 11
- - - -
- - - -
60 2 47
_ _ _ _
2911 Petroleum refineries
355 &
357
3111
Total
Special machinery
Leather tanning
Spent lime, sludges,
tank and still
bottoms
Metals, oils, solvents,
acids, alkalis
Sludges, trimmings
58.000
8.600
2.900
3,856,050
6,600
1.800
170
248,780
10
20
6
6
800
95
35
49,654
10
20
20
Source: Arthur D. Little, Inc., estimates, derived from EPA national industry studies.8"18
32
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reclaimed, and still and tank bottoms, which could have appreciable fuel value. The remain-
ing 94 percent consists mainly of slags and various sludges.
Table III-3 also shows the uneven distribution of wastes among plants in each industry
sector. Column 6 shows the tonnage of potentially transferable waste associated with the
largest plant in each sector. The tonnages range from as little as 5 percent of the total in
special machinery to as much as 60 percent in Pharmaceuticals. Thus, only nine plants
generate 20 percent of Philadelphia's potentially transferable wastes.
The question of how many tons would in fact be transferred with the help of a transfer
agent is difficult to answer, because of the many requirements for a transfer, which may not
all be satisfied in all cases. However, the likelihood of a successful transfer is influenced by
the amount of waste offered: if the amount is too large, there may be no user with suffi-
cient demand to want it; if too small, there may be no user near enough, with a matching
need, and willing to run the risks of accepting it.
The transferable wastes produced by the five industrial groups—pharmaceutical, paints
and allied products, organic chemicals, petroleum refining, and small industrial machinery-
are of three types: solvents, still and tank bottoms, and specialized wastes. The transfer
potentials for each were estimated as follows.
Solvents. The potential identified above includes 3,800 metric tons of solvents, 1,900
tons coming from 37 paint plants and 1,900 tons coming from 10 pharmaceutical plants.
Solvents coming from each plant will be unique, differing in solvent concentration and
impurities from every other plant, as well as from time to time within the plant. For the
most part, solvents must be processed (purified and/or concentrated) for re-use, and the
economics of processing are scale-dependent. Large volumes cost much less per unit to
process than do small volumes. In addition, larger volumes come from larger companies
which are more comprehensively staffed with technical people. Both of these factors suggest
that the larger volumes of solvents, for which a market can be found, are likely to be pro-
cessed in-house or brokered to existing solvent recovery specialists. The smaller volumes
from the smaller plants, which are unattractive to the existing recovery industry because
of the economies of scale, are the most likely candidates for transfer with help from a
transfer service.
Thus, about 30 to 50 percent of the solvents generated in the Philadelphia area (or
about 1,100 to 1,900 MT/yr.) might be transferred, provided that the necessary processing
can be arranged. The problem is complicated by the fact that the solvents would be avail-
able only as separate batches, from many plants, and in amounts ranging from six to 100
MT/yr. per plant. Because of the poor economics of processing small volumes, no more than
ten percent (or about 1 SO MT/yr.) of the total potential would be transferred successfully.
33
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Still and Tank Bottoms. About 70,000 MT/yr. of these wastes are potentially avail-
able. Their main use would be as fuel. The larger the plant, the more worthwhile would be
the technical effort to utilize them. These bottoms might have a value of $20 per ton
(assuming a basic fuel value of $1 per million BTU), so that the largest single plant (produc-
ing 29,000 MT/yr.) could realize a value of about $600,000 per year. This is sufficient to
invite in-house reuse if that reuse is technically and economically feasible. Smaller quantities
in smaller plants have potential annual values ranging from $60 to $3,000 or more. But the
smallest ones are of too little value to repay the effort needed for successful transfer or reuse.
Thus, economics uncertainties, problems of scale matching, and risk factors all reduce
the potential. No more than about 10 percent (or about 7,000 MT/yr.) would be transferred
successfully.
Specialized wastes. The best opportunities lie among small amounts of more specialized
wastes, such as concentrated acids, caustic, off-spec materials, spent catalysis, high-metal-
content scrap, and some salts. No data are available as to how many or how much of these
scrap wastes are generated, either nationally or in Philadelphia. But they are probably
generated in small amounts of between 5 and 100 MT/yr. per plant. Their total amount
seems unlikely to exceed 5 percent of all of Philadelphia's wastes, or about 190,000 MT/yr.
Further, it seems unlikely that more than 10 percent of this amount, or 19,000 MT/yr.,
could be transferred successfully.
Combined estimate. In summary, the total amount of scrap waste transferred with
assistance from a transfer service in the Philadelphia SMSA would amount to no more than
about 26,000 MT/yr., or less than 1 percent of an estimated total of 3,856,000 MT/yr.
generated, as follows:
Amount
Generated
(MT/yr)
3.800
70,000
190.000
~264,000
Amount
Potentially Transferable
(%) (MT/yr.)
3-5 150
10 7,000
10 19,000
~10 ~26,000
Waste Type
Solvents
Still and Tank Bottoms
Specialized Wastes
Totals
The uncertainties in these estimates are sufficiently general to make the estimates of
the amounts of specific wastes with transfer potential very difficult. The interpolation of
these base data, collected and reported on a national basis, to the Philadelphia SMSA adds
34
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further uncertainty. Estimates of what would actually be transferred must average out tech-
nical feasibility factors, attitudes of potential generators and receivers, real and perceived
risks, and the timing of offerings and bids. Each of these factors could be sampled only
lightly in this study's field work; the averaging of effects from these lightly-sampled factors
add further uncertainty to numerical estimates.
However, the estimate is a good representation of the order-of-magnitude of the poten-
tial. The impact of a transfer service, expressed as a percentage of total industrial process
wastes generated in the Philadelphia SMSA, would be small. In particular industries, how-
ever, it could be substantial.
Potential Estimated from Field Interviews
Interviews with S3 plant managers produced the following summary conclusions:
• Internal recycling and by-product recovery is practiced widely.
• There is now relatively little waste transfer between plants.
• Many managers would be interested in using scrap materials, but are unfamiliar
with potential sources.
• For most, the transfer concept was new; many indicated willingness to try it.
• A large number of waste offers, some probably trash but some with potential
value as scrap, would be listed with a transfer service. The number of requests
would be few.
• Managers willing to try scrap materials would usually require a guaranteed
supply for at least 12 months.
• Some managers consider the potential risks and legal liability problems too
great even to consider using scrap.
Thus, it appears that many managers are alert to recycling opportunities and willing to try
scrap materials, but lack the means to learn about their availability.
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IV. TWO TYPES OF TRANSFER ORGANIZATION
The discussion thus far has referred to the "transfer agent" as if only one organiza-
tional pattern exists. But in fact, two distinct types are operating in Europe and the United
States. It is important to understand clearly the differences between them, so that expecta-
tions about each will be realistic.
The major differences concern, first, what each transfers, and second, the role each
plays in the basic transfer system. The European organizations transfer only information.
These are not "waste exchanges", strictly speaking, because they do not transfer wastes as
stock exchanges transfer stocks. Instead, they are "waste information clearinghouses",
because they receive and refer only information about wastes. By contrast, some companies
actually receive and handle the scrap waste materials themselves; these organizations are
therefore "waste materials exchanges." Whereas the information clearinghouse performs
only a few limited functions, the materials exchange performs many. Both types of service
exist to help generator and user satisfy all of their requirements for a transfer.
A comparison of these two types of transfer organizations is presented in Table IV-1,
which summarizes many points discussed in the following separate treatments of clearing-
houses (Part Two) and exchanges (Part Three). The institutional analysis which produced
this comparison is described in Appendix E.
Of the various economic actors influencing a transfer organization, the most significant
is its sponsor. Most of the existing information clearinghouses are sponsored by industry
trade associations and receive financial subsidies. Some of the materials exchanges are
sponsored financially by large and established companies and others, by investors. Which-
ever the form of its sponsorship, a transfer service needs help both to perform its technical
functions and, at least in its beginning stage, to survive economically.
This comparison suggests a natural sequence of transfer organizations. The first step
represents the several existing information clearinghouses which are sponsored and subsidized.
The second step represents the one clearinghouse which is attempting to operate as a com-
mercially-viable enterprise. But a subsidized clearinghouse might evolve into at least a break-
even operation if sufficient and continuing demand were demonstrated. Moreover, either
form of clearinghouse could help perform the valuable market research functions of identi-
fying both transferable scrap wastes and the extent of potential demand for the more
comprehensive transfer services which a materials exchange could provide. Thus, a clearing-
house could evolve into a third step, a materials exchange, or at least outline its opportunities.
37
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TABLE IV-1
COMPARISON OF CLEARINGHOUSES AND EXCHANGES
DESCRIPTION
Current Examples (described
In Appendices A & B)
INFORMATION CLEARINGHOUSE
European and St. Louis Clearinghouses
MATERIALS EXCHANGE
Wimborne-CPR
Zero Waste Systems
• Service! Offered
• Role & Strategy
• Geographic Area
• Industries Served
• Scrap Wastes Accepted
I. SERVICES
Information and referral only
Passive-no assistance in negotiating final
matches.
No limit; broader coverage increases
utility of lists to clients.
Mainly chemical
All wastes with conceivable reuse value
Buy chemical residues, identify potential
users, reprocess as needed, and sell at pro-
fit; information and referral only as cour-
tesy, or as part of paid consulting services.
Active—Business success depends on
brokering match to completion.
Transport costs limit most transfers to
radius of about 50 miles.
May be limited, based on special skills, or
extensive, to seek more stable volume
of activity.
Only wastes highly likely to be trans-
ferable.
• Volume & Regularity
Advertising
• Data Bank
Facilities
Network
II. OPERATIONS
Begin with moderate and variable level,
but may later slow to small and episodic;
small, part-time, flexible staff makes
variations acceptable.
Periodic bulletins to house mailing list;
journal ads also possible.
Simple card files workable to begin; com-
puterizable punched-card system will
allow upgrading to computer later as
volume grows.
Only part-time office space; access to
association news bulletin helpful.
Cooperation among clearinghouses, by
publishing each other's lists, broadens
geographic and Industry coverage.
Begin with limited activity to develop
reputation, market, and reprocessing
capacities; maintaining constant volume
important to use staff and facilities
efficiently.
Aggressive personal marketing to supple-
ment brochures and word-of-mouth
needed to spot opportunities and over-
come client reluctance.
Same, but more data for each material;
broad industrial contacts are essential
sources.
Lab for analysis, tanks and equipment
for reprocessing, storage yard, own or
lease trucks; second-hand gear reduces
capital cost.
Inter-regional cooperation possible, but
limited by competition for most profit-
able scrap materials.
38
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TABLE IV-1 (Continued)
DESCRIPTION
INFORMATION CLEARINGHOUSE
MATERIALS EXCHANGE
• Skills and Experience
• Size
• Style of Management
• Initiative to Create Organi-
zation
III. STAFF
Only managerial and clerical essential, but
but some industry end chemical knowledge
desirable.
Minimum:
Part-time manager and secretary, with
access to technical advisors.
Maximum:
Dependent upon volume and fees.
Only reactive.
Group, association, with approval of top
management.
Chemicals analysis, materials-handling,
detailed industry knowledge, technical
Imagination, marketing entrepreneurshlp,
and business management; access to
legal skills.
1-6 full time with business end technical
skills; clerical and day labor staff as
volume requires.
Entrepreneurial, aggressive.
Mainly individual, by risk-taking entre-
preneurs.
• Pricing Policy
• Income Sources
• Initial Capital Required
• Annual Operating Budget
• Risks Acceptable
IV. FINANCIAL
Free, if subsidized; small listing fee accept-
able to clients; later, clients may also
accept larger subscription fee.
At first, subsides from sponsor; later, fees
from clients.
None, if office and publication available.
$10,000-$50,000
Little or none; sponsor's interest is in
preserving its reputation.
Negotiated for each waste, with likely
minimum of $250. "Loss Leader" pric-
ing possible at beginning to establish
reputation.
Capital from investors or parent com-
pany; fees from clients.
$200.000-$250jOOO.
$50,000-150,000.
Considerable risks necessary.
• Organizational Form
• Sponsorship
• Government regulation of
waste disposal
• Liability
• Laws affecting transfer
organizations
V. LEGAL
Small staff unit of sponsor, or agency
funded by sponsor.
Industry association typical and preferred.
Government possible only if client confi-
dentiality guaranteed; state or federal
environmental agencies more likely than
local or special governments.
Helpful, but not essential for a subsidized
service; the stricter, the better for a self-
supporting one.
Concern for generators, but not clearing-
house.
Same as those for any information or
research service.
Independent, small, specialized company;
or subsidiary of a large, multi-service
company.
Private investors or parent company.
The stricter, the better, to create and
stabilize market demand.
As owner and treater of material,
exchange exposed to suit.
Same as those for any chemical hauler,
treater, or reclaimer.
39
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PART TWO
INFORMATION CLEARINGHOUSES
-------
V. SERVICES AND METHODS
SERVICES
The basic service provided by an information clearinghouse is simple and limited.
Action begins when a generator sends to the clearinghouse its offer of a waste which it
thinks may have scrap value. (Similarly, a user may initiate action by sending his request
for needed scrap material.) The clearinghouse then publishes generator's offer among
others in its next regular list. A user scanning this list may be interested by the generator's
waste, because he sees in it scrap material of value for his manufacturing process. Because
the offer is identified only by code number, user next contacts clearinghouse to register
his interest in learning more. As clearinghouse passes user's name on to generator, it com-
pletes its service. It thus satisfies one of the requirements for a transfer—linking two poten-
tial trading partners.
From then on, the clearinghouse plays no further role. Generator and user negotiate
directly to discover whether the many other requirements for a transfer—for example accept-
able purity requirements, price, transportation costs, and mutual confidence—are already
satisfied or can be arranged. If so, generator will transfer its waste to user directly.
The clearinghouse generally does not actively try to help satisfy requirements other
than introducing potential transfer partners. Thus, the role of the clearinghouse is only
passive. It exists to perform only limited functions—to help generators advertise the existence
of wastes with possible reuse value, to help users identify such scrap wastes, and to refer
potential partners to each other. All other requirements for a transfer must be satisfied by
others—sometimes by generators and users themselves, and sometimes by dealers or waste
reprocessors.
Geographic Scope
The area which a clearinghouse can serve effectively can be broad. In fact, the broader
its coverage of geographic regions (and materials), the better, because this increases the
probabilities of readers finding listings of interest. This is why regional and national clearing-
houses in Germany, Austria, and Switzerland publish each others' lists, and why the St. Louis
service accepts listings from throughout the United States.
However, the economics of t/ansferring wastes dictate that most transfers will occur
between plants located within SO miles of each other. Only in exceptional cases, with scrap
41
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waste of high value and small volume, will the economic benefits to generator and user be
large enough to pay for transportation costs over longer distances. Moreover, a clearinghouse
subsidized by a sponsor with only regional interests may not wish to continue indefinitely
publishing listings beyond the region. Therefore, a network of regional clearinghouses, such
as exists in Germany, would also be useful in the United States. The heart of each region
should be a metropolitan area with a strong industrial economy having the characteristics
described in Chapter III. Such an industrial area would be likely to have both enough per-
sons with the skills and interest to design and operate a clearinghouse, and enough industrial
plants to benefit from waste transfers facilitated by the clearinghouse.
Industries Served
A clearinghouse could in theory transfer information about many kinds of waste mate-
rials from many industries; in fact, the United Kingdom's clearinghouse accepts such listings
as scrap wood. But in practice, such ordinary waste materials as wood and textiles can be
readily reused or disposed through incineration. The industrial wastes of most concern are
produced mainly by the chemical industries; most clearinghouses have been created by the
chemical industries, and they serve primarily the chemical industries and major users of
chemicals, as identified in Chapter III.
Scrap Wastes Accepted
A clearinghouse can and should accept for listing all wastes with any conceivable reuse
value. Materials which can be classified without doubt as trash, without any reuse value,
should not be listed, because their inclusion would place a needless burden both on the
clearinghouse staff and the readers of its lists. However, the ultimate judgment about the
value in a scrap waste lies with its potential users, who know the needs of their own manu-
facturing processes, rather than with the clearinghouse staff. The purpose of the clearing-
house service is not to judge which wastes are more or less valuable, but merely to help identify
their availability to potential users. Thus, the broader the range of wastes listed, the better.
OPERATIONS AND METHODS
Two variations: subsidized and self-supporting clearinghouses
Most existing clearinghouses are in one way or another subsidized by their sponsors
and provide their services free or for only nominal fees. But the usefulness of the waste
clearinghouse function and the existence of other kinds of for-profit information services
42
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for the chemical industries suggests the possibility that waste clearinghouse services may
eventually become feasible as small but self-supporting, commercial enterprises.
Both of these two subtypes, subsidized and self-supporting, have the same functions
in the waste transfer process—to identify scrap wastes and to link potential partners. But,
whereas the subsidized variation may charge little or no fee and merely wait for listings to
arrive for publication, the self-supporting variation must charge enough to cover or exceed
its costs and must vigorously seek paying subscribers in order to stay in business. Thus,
where appropriate in the following comments about operating methods, the differences
between the two variations are noted.
Volume and Regularity
Because accurate data about wastes available for transfer are scarce, predicting the
number of listings a new clearinghouse may expect is difficult. Several years of experience
by some European clearinghouses suggest the pattern of an early surge of activity, perhaps
as a backlog of continuous wastes are offered, tapering off to more modest numbers of
listings with a large proportion of one-time or episodic offerings.
Such fluctuations do not seem to cause problems for subsidized clearinghouses, which
are operated only part-time, as volume requires, and by staff members with other regular
duties in the sponsor organizations. For a commercial organization, however, such fluctua-
tions suggest that the clearinghouse service would not be launched with expectations of
early profitability; instead, it should be offered first as an adjunct to established information
services to the chemical industries, for example as a column in trade journals or a section of
a newsletter listing offers and requests for surplus chemicals.
Advertising and Publishing
The main publication channels for subsidized clearinghouses are regular publications
of their sponsors, for example monthly bulletins of trade associations or chambers of
commerce. In addition, clearinghouses should reach out to potential readers through the
pages of journals read by the chemical and chemical-using industries, including both chem-
ical trade journals (such as listed in Appendix C) and environmental journals and news-
letters, which are likely to be read by environmental engineers of large companies; this
may be done not only by paid ads with tear-out subscription forms but also by free ads,
news stories, and letters to the editor. Finally, a clearinghouse may, as its listings and file
of interested persons grow, publish its own monthly or bimonthly bulletin, printed and
mailed in facilities of its sponsor.
43
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How often the clearinghouse should publish its bulletin is governed by trade-off
considerations. European practice varies, from Italy's weekly list to Great Britain's quarterly
bulletin, but with most publishing monthly. If a clearinghouse publishes seldom and irregu-
larly, only when enough listings have accumulated, it runs the risk of carry ing in formation
which is out-of-date; but if it publishes only short lists too often, it risks carrying many
repeat ads and incurring mailing costs beyond its income. Thus, the best course is to have
the list published as part of an established monthly bulletin or journal with large circula-
tion. Next best is for the clearinghouse to publish specially for its own gradually-accumu-
lated mailing list, beginning bi-monthly and adjusting the frequency later as it learns the
volume and stability of demand.
A self-supporting operation will be unlikely to receive free aid from journals, but
should instead use its own established news bulletin while building up a file of subscribers
especially interested in information about available and requested wastes. Although exten-
sive direct-mail advertising could be done by both subtypes, this approach requires skill
and investment; return rates of only 2 or 3 percent are considered good. A subsidized service
should therefore take advantage of normal mailings by its sponsor to advertise and to pub-
lish lists. A commercial service, however, is probably already using direct-mail techniques,
and so this would be a cost-effective approach to plant managers, environmental directors,
and presidents of potential waste generating and using companies. Names of such persons
can be bought from regular brokers of direct-mail lists.
Data Collection and Storage
The simplest system is a one-page form (Figure V-l). It both registers each offer or
request and keeps data about each on file. Each waste offered or requested is assigned a
code to preserve confidentiality. Most clearinghouses use an alpha-numeric code, consisting
of a letter to indicate an offer or request, and a number (1, 2, 3,...) assigned in the order
received; this code number is entered in the lower right corner. The upper right hand corner
contains the four-digit SIC number to identify the respondent industry. Company name,
address, telephone number, and name of contact are entered in the upper portion. The zip
code is highlighted because it provides a good indication of geographical location.
The registration form requests many specifications. Companies may either not know or
not wish to reveal some of these data. But the German clearinghouse experience (Appendix
A) suggests that many such specifications can be obtained and can increase possibilities for
transfers. The prospect of possibly locating a market for wastes that were becoming difficult
to dispose of acceptably seems to have stimulated many companies to find out enough
about their wastes to be able to list them. The strict confidentiality maintained by the
European clearinghouses has also been a major factor contributing to their success in obtaining
44
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WASTE MATERIAL REGISTRATION FORM
A. Confidential Information (for Clearinghouse use only; will not be released without permission):
Name of company/plant: Industry SIC Number
(4-digit):
Name/number of plant
Street address
City & State
Zip Code
Contact Person's Name: Title:.
Telephone (with area code):
B. Publishable Information (to appear in Clearinghouse's next listing; provide only those data which
you are able and willing to supply):
Material Is: Offered/Requested (circle one)
Specifications:
Type (select code)! Physical form
Name Chemical composition
_. .,„..,. (list % in descending order).
Quantity/Period*
Continuous/lntermittent#_
Lab Analysis Available?
Additional data
Impurities (ppm)
Surface tension
Melting point
Boiling point
Viscosity
PH
Other properties
'Acids - Ac; Alkalis - Al; Inorganics - I; Organics - 0; Metals - M; Oils and Waxes - OW; Catalysts - C;
Rubber & Plastics - RP; Miscellaneous - Mi.
#List amount per period, e.g. gals/week, tons/month. Describe whether material is offered/requested on a one-time.
regular, or irregular basis.
For Clearinghouse Use Only:
Identification Number
General Location
FIGURE V-1 FORM FOR REGISTERING AN OFFER OR REQUEST WITH CLEARINGHOUSE
45
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data. This form, can help to educate plant managers about what (hoy should know .ilunit
their wastes. Finally, such data would be useful if, after several years of operation, (ho pub-
lished listings became the data base for an inventory of available wastes in the clearing-
house's region.
The next levels of complexity are, first, a punched-card storage system and, then,
computerization. However, these techniques are probably too costly for the small-scale
listing service of a subsidized regional clearinghouse. They might eventually become cost-
effective for a self-supporting clearinghouse, which might be able to add these data to
existing systems and might use them for developing and marketing other services.
Facilities
A clearinghouse requires only a small amount of office space, standard clerical equip-
ment, and access to reproduction facilities or news bulletins, all on a part-time basis. These
are best obtained from its sponsor organization, whether a trade association or an estab-
lished commercial service.
Network
As noted above, economics will limit distances of most transfers. Thus, clearinghouses
are likely to emphasize the needs of their own regions. But a network of cooperative arrange-
ments among clearinghouses should exist to facilities transfers of those low-volume wastes
whose high value can justify the cost of transportation over long distances. Subsidized
clearinghouses can arrange to publish each other's lists, in whole or in part. Self-supporting
ones can arrange to cooperate when specific inter-regional opportunities arise.
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VI. ORGANIZATION AND FINANCES
STAFF
Skills and Experience
The limited services offered by existing subsidized clearinghouses require only basic
managerial and clerical skills by staff members conducting its daily operations. Some know-
ledge by the manager of industrial chemistry and of client industries is desirable, but not
essential. When questions or problems arise requiring technical guidance, managers in
practice draw upon chemical engineers associated with the sponsor organization. These
engineers could be regular staff members of the industry association. Better yet, a volun-
teer advisory committee should be set up both to counsel the manager on technical and
policy questions, and to serve as a liaison mechanism with industry; its members should
be representative of the range of companies likely to take advantage of clearinghouse
services, both generators potentially offering wastes and users potentially accepting them.
Whereas a core committee of about six to eight persons would be enough to consider
technical questions in detail, a larger panel of perhaps 25 representative advisors would
provide broader contacts with industry and be a useful sounding board on broad policy
questions.
A self-supporting, commercial venture would not have access to technical guidance
by volunteers, but could obtain it from engineers on a consulting basis. Moreover, in addi-
tion to managerial and clerical skills, it would need marketing and advertising skills to
attract subscribers.
Size
A subsidized operation needs only a part-time manager, devoting perhaps three or
four hours per week to handling inquiries and editing the listings for publication, assisted
by a part-time, perhaps half-time, secretary. These levels of effort could increase in response
to higher volumes of offers and requests.
A self-supporting clearinghouse, likewise, could start with only part-time personnel
drawn from the parent company.
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Style of Management
Existing clearinghouses require only a routine and reactive style of management, in
keeping with their subsidized financial basis. But, Jike information services in other fields,
a clearinghouse service could be offered commercially and marketed aggressively, thus
requiring an entrepreneurial style of management. The best approach, of course, would be
to add the information service about scrap wastes to information services about raw mate-
rials, surplus chemicals, and byproducts for the same clientele. This approach would mini-
mize risks and costs by building upon existing facilities, reputation and knowledge of
the market.
Initiative to Start a Clearinghouse
Because confidence of industry is such a major requirement for success, a clearing-
house service, whether subsidized or commercial, must be started with great care for estab-
lishing a reputation for integrity among prominent members of its likely clientele. The ideal
method, adopted by most existing clearinghouses, is to arrange formal sponsorship by an
established, prominent, and broad-based industry association, or by an autonomous govern-
ment institution with backing from a representative committee of industrialists. For a
commercial venture, the corresponding method is to obtain endorsements from industry.
In all cases, public approval for creating the service should come from top levels of
potential client companies, preferably from their presidents or general managers of their
plants located in the clearinghouse's area. Although contacts with a clearinghouse about
specific offers or requests might be handled for large companies by mid-level managers or
environmental engineers, they cannot do so easily without clear approval from their supe-
riors. Thus, a clearinghouse service should anticipate this need and act from the beginning
to solicit and obtain public approval from prominent companies.
FINANCES
Pricing Policy and Income Sources
A subsidized clearinghouse, depending upon the amount of its financial support, need
not charge for its service directly; but members of sponsoring industrial associations do pay
for it indirectly through their association membership dues. In addition, a clearinghouse
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could charge separate fees for registering offers or requests and for subscribing to its bulle-
tins. Price sensitivity of clients can be learned only through experience: initially, only ;i
listing fee, of perhaps $5, might be charged to defray expenses; but. after the scnicv h.i>
shown its usefulness, the listing fee might be increased and a subscription fee charged to non-
listing readers, following the practice of newspapers and journals publishing classified ads.
If a clearinghouse were to offer its listing service only for a fee, its clients would have
to subscribe, even though most listings would not be of interest, in hopes of occasionally
identifying a trading partner with an attractive material within an economic distance.
Indeed, one successful transfer could save a participating company many times the sub-
scription fee. Thus, a clearinghouse policy of broader coverage should lead to a corre-
spondingly greater volume of listings and a lower schedule of listing and subscription fees,
which should make its service too useful and inexpensive for potential clients to ignore.
A chamber of commerce or other private-sector association which sponsors a regional
clearinghouse may in time object to subsidizing a nationwide information service which
benefits a large number of clients outside of its region and not members of the association;
at that time, when the clearinghouse would presumably have proven the continuing demand
for its service, it could raise its listing fee and perhaps add a subscription price, both set so
as to cover its costs. Thus, policy pricing is related to policy on geographic area served.
The mix of industries using a subsidized clearinghouse or subscribing to a self-support-
ing service is immaterial, since neither subtype would derive its income directly from the
waste transfer transactions between generators and users. However, if participants or sub-
scribers to a service were to derive no benefits from it and anticipate no future benefits,
they might not want to continue to receive bulletins. Both subtypes should therefore
solicit participation from likely generators of valuable wastes (e.g., the chemical, electro-
plating, electronics, pharmaceutical, and battery industries) and likely users of waste mate-
rials (e.g., boat builders, machine shops, ore processors, waste recovery firms, pesticide
and paint formula tors, fertilizer manufacturers, etc.).
Capital Needs and Operating Costs
Subsidized Clearinghouse. For this first subtype, capital needs are small. A subsidized
clearinghouse may be merely one of many services offered by an industry association, and
so small as not to have a separate budget. Its level of effort varies, depending solely upon
the volume of offers and requests, because it waits passively for them to arrive by mail
rather than seeking actively to sell subscriptions. Cost data for existing subsidized clearing-
houses are not available. The minimum pro-rated costs might be:
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Labor
Manager (at 10% time or 4 hours weekly) $2,000
Secretary (20%) 1,500
Sponsor's Executive Overhead 500
Total $4,000
Office and Communications
Rent and Utilities (pro rated) $ 500
Telephone (@ $30/month) 360
Supplies 1,000
Printing (lists, forms, brochures) 1,000
Postage 1,000
Total $3,860
Contingency @ 20% 1,500
Total $ 9,360
say $10,000
This minimum annual operating budget for a subsidized clearinghouse might vary
from region to region. The factors changing the estimates would include wage rate differ-
entials in various labor areas, the volume of activity, the amount of managerial time con-
sumed in persuading clients to provide complete listing data, the frequency of publishing
and mailing lists, and whether lists were printed and mailed separately or merely included
in the sponsor's regular bulletin. Moreover, hidden subsidies might be provided by tech-
nical specialists serving as volunteer advisors. Vigorous demand for the service might push
these costs up as high as $50,000. Accurate cost and operating data could be gathered
only through experience.
Self-supporting Clearinghouse. For this second subtype, initial capital needs would
also be small, assuming that the venture is launched on only a small scale as one of many
information services provided by an established company. However, its operating costs
would be higher. The advertising and selling efforts to recruit paying subscribers would
imply more entrepreneurial talent, more managerial and clerical time, perhaps access to
legal counsel, and higher office costs. Again, costs would vary with such factors as market
demand and mode of publication. (A large-volume operation could eventually justify
shifting to electronic data processing of offers, requests, and subscribers.) Operating costs
might run as high as:
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Labor
Manager (full-time) $20,000
Technical professional (half-time) 10.000
Marketing professional (half-time) 10,000
Secretary (full-time) 7,500
Company's executive and legal overhead 10,000
Total $57,500
Office and Communications
Rent ($500/month) $ 6,000
Utilities ($30/month) 360
Telephone ($100/month) 1,200
Supplies 1,500
Printing 5,000
Postage 5,000
Total $19,060
Contingency 10,000
Total $86,560
say $90,000
For both subsidized and self-supporting subtypes, accurate cost and operating data
could be gathered only through experience. The logical course is to launch at first only a
small service, and to collect and analyze its cost data carefully. Therefore, if demand grows,
staff and resources can be added to supply it.
ORGANIZATIONAL AND LEGAL CONSIDERATIONS
Organizational Form and Sponsorship
Existing clearinghouses are typically only small services provided among other services
by their sponsors. Consequently, they do not appear to be separate staff units, but might
become so in time to respond to large and sustained demand.
Various forms of sponsorship for a subsidized clearinghouse are possible (Appendix
E). Several state government environmental departments are exploring whether they might
begin, or at least encourage, such transfer organizations. Federal and local government
agencies might do so, too. A research institute supported by grants and assisted by technical
staffs might be an effective sponsor, if it enjoys a good reputation among likely industrial
clients of the transfer organization.
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The preferred option, however, and also the typical choice of existing clearinghouses,
is a broad-based industry association, perhaps a chemical industry trade association or a
more broadly representative chamber of commerce. Such associations have the needed
staff skills and facilities, and the desire to render services both to their own membership
and to their larger communities. Above all, they are the type of sponsor most likely to be
acceptable to industry. In contrast, sponsorship by a government agency would be quite
unacceptable to most potential users, and might thus limit the clearinghouse's full potential.
For a self-supporting venture, the most logical sponsor would be an established com-
pany providing information services to chemical industries. In either case, the region served
should be heavily industrialized for best results.
Legal and Liability Questions
Any clearinghouse would be subject to the same legal standards which govern their
sponsors and other kinds of research and information services. Since it publishes only
information, and has neither the need nor the ability to verify all facts submitted for publi-
cation, it occupies the same position as any technical journal. In short, there are no parti-
cular legal standards in federal, state, or local legislation which would either hinder or
favor a waste information clearinghouse in comparison with any other information service.
Government regulation forcing a clearinghouse to divulge client information would
destroy its effectiveness with industry, and thus be self-defeating. A clearinghouse, in effect,
contracts only to publish information provided by clients. It could, if it felt the need,
include in its registration form and established lists a disclaimer of liability.
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PART THREE
MATERIALS EXCHANGES
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VII. SERVICES AND METHODS
SERVICES
In contrast to the simple linkage function performed by an information clearinghouse,
the services offered by a waste materials exchange are several and complex. As an active
dealer in touch with the chemical industries, an exchange identifies potential uses and
users, buys or accepts wastes in which it sees value, reprocesses them as necessary (per-
haps by chemical treatment, perhaps by consolidating or dividing batches), convinces users
of their value, and sells them at a profit.
Whereas the role of the clearinghouse is passive, that of the materials exchange is active.
All existing exchanges are profit-seeking firms. They can survive economically only by
searching vigorously for transfer opportunities and completing them successfully. Instead
of stepping back from the negotiation after introducing generator and user, the materials
exchange remains interposed between them. As in stock and commodity exchanges, the two
trading partners do not know or deal with each other directly, but only via the middleman
or broker. Therefore, the items transferred pass physically, economically, and legally through
the hands of the exchange, which earns its income from commissions charged on completed
transactions.
It follows from the larger role played by the materials exchange that its organization
and economics must be more complex than those of the information clearinghouse. For
example, a user must know whether a scrap waste has the chemical and physical properties
compatible with his intended use. But a generator typically does not know enough in detail
about these properties, often because several wastes from several chemical processes have
been mixed; moreover, sufficient analysis can be done only with the potential use in mind.
Thus, the materials exchange must operate or contract for laboratory services to analyze
the waste. In almost all cases, except for the unusual and ideal case when generator's waste
exactly fits user's need "as is", the exchange must process or arrange for processing the
material. Moreover, the user wants assurance about the scrap waste's characteristics, some-
times from a legally-binding certificate backed by the exchange's business reputation.
Geographic Scope
Both the characteristics and the economics of these services impose limits on the
market area which an exchange can serve effectively. One major factor is cost of transporta-
tion: as shown by the economic analysis in Appendix D, this cost limits most transfers to a
distance within about 50 miles. Another factor is the frequent and face-to-face contacts
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which an exchange operator must have with potential clients in order to maintain detailed
knowledge of technical trends, to develop the confidence which clients must feel before
dealing, and to negotiate the conditions for each specific transfer. Thus, the effective
service area is the territory which the materials exchange sales and technical staff can cover
efficiently, perhaps a circle with a radius of about 100 miles and including a metropolitan
area with a diverse industrial economy.
Industries Served
Which industries an exchange can serve effectively depends upon its business strategy,
its reputation, and its technical skills. Some established dealers or reprocessors limit them-
selves to one industry. But a waste materials exchange is more likely to find the new and
unusual opportunities it needs by working among several or many industries. Although its
focus is on the chemical industries themselves, an exchange will also find transfer oppor-
tunities among other industries which use chemicals but lack the technical knowledge and
skills to handle wastes. Another motive for an exchange to diversify across industry lines
is to build an aggregate volume or flow of business which is stable, and not dependent on
changing economic conditions in one industry.
Scrap Wastes Accepted
Whereas an information clearinghouse can and should accept the broadest possible
listing of scrap wastes for publication, an exchange must usually restrict itself to handling
only the more valuable materials, which are more likely to bring in reasonable commissions.
An exchange deals with passing opportunities and often with only slender margins for
profit. It is a business, rather than a subsidized public service. It must therefore take care
not to be "nickeled and dimed to death" by accepting many materials in less-than-econom-
ical quantities and with low probability of being sold at a profit.
Best Locations
All of the service characteristics described above indicate that the best locations for
materials exchanges are areas in which industrial plants are numerous, diverse in nature, and
geographically concentrated. Examples are Philadelphia, northern New Jersey, Chicago,
St. Louis, Houston, and the San Francisco Bay area.
A secondary criterion for selecting a region is the availability of analytical laboratory
facilities, and waste recovery or reprocessing facilities. The exchange may find it useful to
contract with such facilities for services that would enhance the prospects for waste transfer.
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METHODS FOR ASSESSING AND TRANSFERRING SCRAP WASTES
The techniques needed to satisfy the requirements for a transfer also determine the
way in which a materials exchange must organize and operate its services. Most of the tech-
niques described below for a materials exchange are also employed by a waste generator
and user when they negotiate a transfer directly, perhaps after being introduced by an
information clearinghouse. As the middleman between generator and user, the materials
exchange performs or helps to arrange most of the requirements for a transfer. The various
methods it may employ for assembling information and assessing the transfer potential of
wastes are part of three basic screens corresponding to three groups of requirements: iden-
tifying technical feasibility, estimating economic feasibility, and assessing marketing factors.
Identifying Technical Feasibility
Wastes with potential scrap value may be brought to an exchange by waste generators,
or may be identified by the exchange's technical staff in the course of other consulting
work for industry. Appendix C contains lists of both chemical dictionaries and other sources
helpful for identifying potential uses, and of sample wastes and possible uses for each. Once
the idea has appeared, the exchange must test its technical feasibility in three respects:
1. Sensitivity of potential uses to the waste's impurities,
2. Compatibility of the waste's physical properties with raw materials specifica-
tions for the intended process, and,
3. Match between the quantity of waste available and the quantity required by
the potential user.
Methods for testing are discussed below.
1. Sensitivity to Impurities. The composition of a waste stream tends to vary greatly
from day to day, week to week, and year to year, even though produced by one process
within one plant. Moreover, waste streams are typically contaminated with impurities. For
some applications, the exact composition of a waste stream may be inconsequential. For
example, a potential user seeking an alkaline waste to neutralize acids for disposal would
be interested only in pH. Waste lime, soda ash, sodium hydroxide, and potassium hydroxide,
etc. would all serve equally well, if available in suitable quantities at competitive costs. Some
caution, however, would be necessary with respect to toxic impurities which, if present,
could cause the neutralized stream to be a hazard for disposal.
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Before accepting a waste stream, a potential user should ask the exchange agent for a
chemical analysis and/or a sample for analysis by his own lab. Potential users unskilled in
evaluating the implications of a chemical analysis should employ a consultant to assist
with the evaluation. A materials exchange should therefore offer analytical and consulting
services to establish the feasibility of matching the waste with the intended application.
The exchange lab should identify and quantify all of the following components:
Volatile organics Non-volatile organics
Acids Alkalis
Salts Metallics
Cyanides Pesticides
Ideally, every component which is potentially a toxic substance, a contaminant to the user,
or at concentrations of 1 ppm and above should be identified, both qualitatively and quanti-
tatively. Moreover, the range over which major components might typically vary during a
year should be identified, if possible; "major components" are defined as having concen-
tration greater than 1 percent, the threshold of existing analytical methods and machines.
2. Compatibility of Physical Properties. Technical feasibility often depends not only
on a waste's chemical composition, but also on its physical properties. Those properties
which are important must be determined for each case in view of the possible uses. If a
potential user has drawn up detailed specifications for virgin material suppliers, the waste
stream must be tested against the same specifications. Otherwise, the materials exchange
and/or the potential user should, as a first step, review the following list of properties to
determine which, if any, might affect technical feasibility:
• Physical state at ambient temperatures (liquid, emulsion, slurry, sludge, tar,
bulk solid, solid powder)
• Layering
• Suspended solids
• Density
• BTU content
• Viscosity
• Flash point
• pH
• Other
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The important parameters should be measured. The exchange's staff can then judge
whether they lie within, or could easily be brought within, acceptable ranges.
3. Quantitative Match. If a potential user can accept only a small fraction of a gen-
erator's waste, the generator would be left with a disposal problem. If the generator employs
a waste disposal contractor, a small reduction in the quantity of waste for disposal might
not result in a proportionate decrease in disposal costs. There is of course the possibility
that the exchange could divide and distribute the waste among a number of users so that the
generator's disposal problem could be obviated completely.
If a user's demand for a waste exceeds the generator's supply, the user would still
have to purchase some virgin material. If the composition of the user's feedstock changes
from waste to virgin material and back, and thus requires changes in his processing opera-
tions, the transfer may prove technically infeasible. This will depend upon the ease with
which the required processing changes can be made. In labor-intensive industries engaged
in batch processing, partial replacement of virgin materials with wastes may present no
major technical problems. In continuous processing, a reliable constant source of raw mate-
rials may be much more critical. An exchange might possibly tap enough sources of a parti-
cular waste to ensure that the user's demand could be satisfied completely; however, since
wastes from even one plant tend to vary, the "same" wastes generated by two different
plants can be expected to differ even more.
Ideally, of course, the quantity of waste available from a generator will exactly match
the quantity required by a user. But such cases are expected to be relatively rare.
Estimating Economic Feasibility
The analysis, formulas, and graphs for estimating economic feasibility appear in Appen-
dix D. It shows the importance of transportation costs, the components of transfer costs,
and how to estimate whether a transfer opportunity offers potential economic gains for
both generator and user. In brief, the proposed transfer must cost the generator less than his
disposal costs, and the user less than his raw material costs. Moreover, the economic gain or
saving to each must more than offset the perceived risk which the proposed transfer holds
for each—for the generator, the risk that mishandling of the waste might cause injury and
give rise to a liability suit; for the user, the risk that unknown chemical properties of the
waste might contaminate other, more valuable materials in his manufacturing process.
Finally, the economic gain resulting from the proposed transfer must cover transportation
costs and transfer costs, notably that of treating the waste to meet the user's specifications.
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Assessing Marketing Factors
Many new products fail in the marketplace, in spite of their technical merits and com-
petitive prices. Evaluating the transferability of a waste is not too different from evaluating
the salability of any new product: the waste must not only be objectively capable of serving
a particular need at a competitive cost; it must also be subjectively perceived by the poten-
tial user as something he wants or needs. If a customer chooses a raw material on the basis
of cost alone, he should readily accept a waste at a fraction of the cost of a virgin material.
But cost is rarely the only factor governing business decisions. Such other factors as the
seller^ reputation, reliability, and guarantees can significantly influence the decision of a
potential buyer. Waste transfer differs from new product sales in that the waste generator's
willingness to sell may not be based solely on economics: such factors as guaranteed con-
fidentiality, fears about liability, and concerns about public image can govern both whether
a generator decides to offer his waste and to whom he will transfer it.
A transfer agent must respond to the spectrum of needs and attitudes typical of gen-
erators and potential users. Some managers deny that their plants generate any chemical
wastes; batch processors of inorganic chemicals seem to be particularly adamant. However,
such managers may offer information after being shown studies which list wastes typically
generated by their industries. Other managers become intrigued by the possibility that their
wastes may have reuse value. This attitude seems more characteristic in small plants than
large, and among users rather than manufacturers of chemicals; managers of large chemical
plants generally know the characteristics of their wastes and try to reduce their magnitude
by changes in processes.
Confidentiality is just as important a requirement for materials exchanges as for infor-
mation clearinghouses. The generator must believe that any conditions he places upon a
waste will be observed by the exchange. Similarly, the user must feel confident that the
exchange is not deliberately withholding important information about the waste's properties.
Many plant managers willing to consider the use of scrap wastes need assurance that
such chemicals will be available in sufficient quantities for at least a year. But few waste
generators can guarantee this. Changes in product line, and changes in manufacturing pro-
cesses are relatively common, and nearly always affect the nature and the quantity of wastes
generated. The materials exchange operator might be able to locate alternative sources, but
may not be able to guarantee to the potential user that his needs can be met.
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VIM. OPERATIONS, ORGANIZATION, AND FINANCES
OPERATIONS
Volume and Regularity
An exchange's volume of business is likely to be low at first, and grow in relation to
such factors as its reputation, the amounts of scrap wastes available within its service area,
and willingness of generators and potential users to engage in transfers. Because an exchange
has more staff and physical facilities than a clearinghouse, it needs a higher volume of
profitable business to pay for them. Moreover, like any business, it needs a reasonably
constant volume (Appendix D) to employ its staff and facilities efficiently. But this cannot
be assured in the volatile waste business. Thus, an exchange is less likely to succeed finan-
cially as a single-service venture than as one among several services, notably consulting,
reprocessing, and dealing in surplus chemicals, offered by an established firm.
Advertising and Market Development
General information about an exchange's service area can be assembled from industrial
directories and technical literature (Appendix C). The exchange must then identify specific
companies and plants likely to need its services. The least effective way to explore market
potential is by direct mail techniques; a response rate of only 3 percent to mail solicitations
is high. Merely dropping a bulletin on someone's desk does not assure he will read it; even if
he does, he may not recognize the possible relationship between wastes listed and his own
raw material needs. Nonetheless, those who do respond are likely to become serious pros-
pects, and thus merit follow-up visits.
The most effective way to explore and build a market is unquestionably by personal
visits, in order to establish confidence as well as to give and receive information about
trends, needs, and opportunities. The recommended sequence of contacts is as follows:
• Telephone the manager of the potential donor or seller plant:
— describe the exchange's services
— request information about the composition and quantity of wastes which
the plant generates
— ask if recycling opportunities have been explored
- discuss whether the transfer opportunity identified by the exchange does
in fact exist
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— judge the manager's degree of interest
— draw out his doubts or objections if any, and try to dispel them
- ask for a visit, if it seems likely to be useful
Telephone the manager of the potential acceptor or buyer plant:
— describe the exchange's role and services
— ask about his raw materials needs and prices currently paid
— assess his attitude toward using lower-cost, scrap materials
— judge his degree of interest in the potential opportunity identified by
the exchange
— seek a visit, if it appears useful
Visit generators and potential users:
- establish a sales goal and direct discussion toward it throughout the visit
— know the plant's products and its likely problems and needs
- anticipate negative attitudes, e.g., "We don't generate any wastes" or "We
can't use any wastes." However, most plant managers are intrigued by the
waste transfer concept, even if they assume that they would not participate.
— draw out and dispel obstacles
— schedule four visits per day to plants in the same zip code area; write
visit notes between appointments
— obtain, if possible, samples of wastes which might be offered, and speci-
fications of scrap wastes which might be bought.
Assure that potential transfers are technically feasible:
— analyze the waste samples
- match analyses against user specifications
— determine, by analysis or discussion with the manager of the generating
plant, how variable the waste properties are likely to be over time
— discuss these properties in detail with the manager of the potential user
plant, to determine whether they are acceptable
Data Storage
A rich data bank about the wastes generated by industries and plants within an ex-
change's service area is the key to successful transfers. As an exchange's staff assembles
data from both literature and plant visits, it must record and store it in ways wliich will
facilitate identification of potential matches. Initially, an exchange can use the simple form
60
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recommended (Chapter V) for a clearinghouse. But soon, the amount of data is likely to
exceed the capacity of this system.
Therefore, storage on a punched card (Figure VIII-1) offers both more capacity and
more flexibility for rapid retrieval of desired information. Suppose one wanted to know, for
example, all sources of acid wastes in the Boston, Massachusetts, area (zip code 021 —).
Retrieving such data from cards would be laborious. With a punched-card system, one could
easily select, first, the cards listing wastes in the 021- - zip code zone and, then, the subset
of these listing acid wastes, or vice versa. With the card illustrated, one can store data on a
company's zip and SIC codes, general types of wastes supplied or used, the quantity of
each type of waste available or wanted (by range), and whether the quantity is continuous
or incidental. Specific company and waste data may be recorded on the card's front and
back spaces.
If and when the amount of data becomes large, punched-card storage allows conver-
sion to a computerized storage and retrieval system.
Facilities
An exchange must have, or have access to, facilities for handling, analyzing, processing,
and transporting wastes-in-transfer. It may have all of its own laboratory equipment, pumps,
storage facilities, trucks, etc.. Or it may restrict itself to the minimum of equipment and
borrow or contract for other facilities and services, for example for analyzing samples and
processing wastes. Following the policy of buying only second-hand equipment will help to
limit the amount of capital invested in facilities.
Network
Cooperation among exchanges serving different areas is possible when a transfer oppor-
tunity appears in which the scrap waste has a value high enough and volume low enough to
cover the cost of long-distance transportation. However, this possibility is limited by the
natural competitiveness of exchanges for the most profitable wastes and opportunities.
STAFF
The active materials exchange operator must convince both generators to allow their
wastes to be marketed, and users to accept them. The investment of staff time, and there-
fore money, required by personal contact is high, and the expectations of profitable return
must be commensurately high. The exchange manager and staff must have detailed and
61
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Tom or Ton/Yr g Toni or Ton/Yr
ooooooooooooo oo
<6 0-10 11-60 51- Ind. <6 0-10 11-60 51 IK
OOOOOOOOOOOOO O
lOIBOBO-ZOWI-SSO >J50 CM B1 150151-0)201 BO X50
III II III!
OTHER DATA ABOUT THE GENERATING (OR USING) COMPANY (OBVERSE)
OTHER DATA CHARACTERIZING THE SCRAP WASTE OR SPECIFYING THE
POTENTIAL USER'S NEEDS (REVERSE)
^ 1 1 1 II
o o o o o o §o'ol"o"ol o
001-19 0»ll 01-9 9> F»l
oo oooooooo
JA/UO i jo nioj. £
1 I
.
09E< OZ-IKOX19IO>-IO1 woi
o
O O O C
00119 0»ll 01-9 9> «
o o o o c
'VU01JOIU01 -ml
abuitj Aiuuono [i
•ij ^^/
~- Q5
"-01
~- O
- o
"• of
^_ o
- os
"• o
- r\
^ ' H
~. of
"- o1
~- o
" 0,
• oi
_ o
--n?
ii ii 1 i i V
> OB< OK UtOK-mOB-lOl wo Ot&C OZ-KtOOC-iaoa-lOl w>9 OB< OI-IOIOOMSt 09110) h"«
) O
I OOI-I9
) O
B '
f
f
oooooooooooooo o
OH 1 01-9 9 > «»l 001-19 09-11 01-9 9> i»l 901 19 0»ll 01-9 9> -noi
o^o o q qjj o 0*0,0 o^ o o o
j *»-* || ' AJSk I
FIGURE VIII-1
PUNCHED-CARD FORMAT FOR WASTE MATERIAL DATA FILE
-------
current knowledge of the industries they seek to serve, as well as some knowledge of analyt-
ical methods and materials-handling techniques. Imagination is especially important, because
the exchange's function is to recognize or create opportunities which previously were not
seen or did not exist. Related to technical imagination is entrepreneur-ship in marketing the
exchange's services. When legal questions arise and contracts need to be written, the exchange
needs access to legal skills. Finally, to integrate all these skills profitably requires talent in
business management. All these skills imply that key members of the exchange staff must
have considerable first-hand experience in industrial processing technology.
One or more full-time persons with business and technical skills are needed to run an
exchange successfully. They must be supported by a staff of clerical workers, truck drivers,
and equipment operators to handle and process waste materials. The size of this staff
depends upon volume of activity; existing exchange staffs range from about four to about
45, and are supplemented by outside specialized skills, notably laboratory and legal services,
purchased as needed.
FINANCES
The price which an exchange must charge for each transfer depends upon the econom-
ics of each case. Appendix D analyzes the several factors. The exchange operator, based
on his analysis of the waste's market potential and his transfer costs, negotiates each trans-
action separately with generators and users. He is likely, however, to set a minimum designed
to cover his overhead costs and to discourage dealing in small, uneconomical quantities;
this minimum might be about S2SO.
Some capital investment is needed to rent or buy an exchange's equipment, including
storage and treatment facilities, trucks, office space, and a laboratory. The experience of
existing materials exchange suggests that the initial capital investment would be between
$200,000 and $350,000. The exact requirement would depend upon such factors as the
size of the exchange's planned market area, the amount and condition of equipment pur-
chased, the facilities (for example, storage) which might be acquired at low or no cost
from a sponsor, and the expected period before reaching financial self-sufficiency.
The annual operating budget would cover such costs as salaries and wages, pensions
and benefits, rent or mortgage, utilities, insurance, supplies for office and laboratory and
treatment facilities, interest payments, and real estate taxes. Depending upon the exchange's
size and services, these are estimated to fall within a range of $50,000 to $ 150,000.
63
-------
ORGANIZATIONAL AND LEGAL CONSIDERATIONS
Existing materials exchanges include both small, independent, specialized companies,
and subsidiaries of large, multi-service corporations. Financial sponsorship by banks and
private investors is possible. But affiliation with and access to the services of a large com-
pany with an established reputation in the chemical industries is more likely to assure
success. Indeed, economic analysis (Appendix D) suggests that the number of economically-
viable transfers which an exchange might complete would be too low to cover the costs of
operating the exchange service alone; therefore, the materials exchange service should be
only one among several related services for the chemical industries, notably consulting,
dealing in surplus chemicals, and reprocessing established by-products.
Legally, an exchange is subject to the same laws and regulations as any business corpo-
ration engaged in hauling, treating, and reclaiming chemical and industrial products. As
temporary owner of waste materials which might contain ingredients harmful to people
or the environment, an exchange would be exposed potentially to liability suits (Appendix
F) as one of the normal risks of its business.
64
-------
APPENDICES
A - INFORMATION CLEARINGHOUSES
B - MATERIALS EXCHANGES
C - DATA AND METHODS
D - ECONOMICS OF TRANSFERRING WASTE MATERIALS
E - INSTITUTIONAL ANALYSIS AND OPTIONS
F - LEGAL ASPECTS OF TRANSFERRING WASTES
-------
APPENDIX A
INFORMATION CLEARINGHOUSES
The majority of existing exchange organizations are operated as wholly or partially
subsidized services, on the information clearinghouse model, by the chemical industry asso-
ciations or governments of European countries. There are only a few waste transfer opera-
tions in the United States, and their approaches vary.
EUROPE AN MODELS
Genesis and Organization
In most cases, the impetus for clearinghouses came from national chemical industry
associations, loosely equivalent to the Manufacturing Chemists Association (MCA) in the
United States (Table A-l). Most clearinghouses are financed wholly by the industry. In
Scandinavia, the clearinghouse was formed at the recommendation of an official inter-
governmental working group on waste management, and funded for a three-year period, by
an intergovernmental foundation, Nordisk Industrifond, with matching funds from each
country's Federation of Industry. In the United Kindgom, a committee including repre-
sentatives of several chemical manufacturers recommended establishment of a clearinghouse
to the Departments of Environment and of Trade and Industry; the latter is now sponsor-
ing the clearinghouse for a two-year trial.
All clearinghouses appear to have been started on low budgets, with a belief that
transfer made sense in principle, but with no certainty about how many transfers would
result. Most are sponsored by and integrated with the operations of the chemical industry
associations. For example, the Netherlands clearinghouse is administered by one part-time
staff person; the Belgium and German each have a part-time director and a full-time admin-
istrator; and the Swiss is headed by a lawyer and a chemist, both serving part-time. Costs
are kept to a minimum by using existing resources (offices, staff) and existing publications
(trade journals, association bulletins).
Government agencies seem to play no direct role except in the United Kingdom and
Scandinavia. Although the U.K. clearinghouse is funded by the Department of Industry and
operates in a government laboratory, the information it handles is said to be carefully
insulated from other government agencies, so as to maintain anonymity. The Nordic clear-
inghouse is funded by an intergovernmental foundation, Nordisk Industrifond, established
in 1973 to promote industrial research and development jointly among the Scandinavian
countries. The environmental affairs office of each country's Federation of Industry acts
as the national clearinghouse, and the central administrative agency is the Swedish Air and
Water Pollution Research Laboratory.
65 .
-------
TABLE A-1
WASTE INFORMATION CLEARINGHOUSES
Name of Exchange or Sponsoring
Netherlands
(established
January 1972)
Belgium
(November 1972)
Germany
(December 1972)
Austria
(February 1973)
Association
VNCI
(chemical Industry
association)
Fechlmle (Federa-
tion des Industries
Chlmlques de
Belglque; chemical
Industry associa-
tion)
VCI (Verband der
Chemlschen Indus-
trie; chemical
Industry associa-
tion)
Fachverband der
Chemlschen Indus-
trie Osterrelchs
(chemical Industry
association)
Address
The Hague, Nether-
lands
49. Square Marie-
Louise, Brussels,
Belgium
Karlstraise 21
Frankfurt/Main
Germany
Schllessfach Nr. 69
1011 Wlan Austria
Personal
Contact (•)
Mr. Beukers
Mr. Bormans
Miss Stuvenhage
Mr. Heinz Keune
Mrs. Use Mu'ller
Or. Loeschner
Offers/Requests
from:
Chemical Indus-
try only
All Industries
(originally
chemical Indus-
try only)
Any manufac-
turing firm
Primarily chem-
ical Industry
Distributes
to:
Chemical
Industry and
Interested
others
All Interested
parties
Any manu-
facturing firm
Chemical
Industry
Via
Association
Journal,
Nederlandse
Chamische
Industrie
Association
Bulletin,
Cham-Flash,
and subscrip-
tion publica-
tion Ecochem
Bulletin to
members and
Association
Journal, Cham-
ische Industrie
Monthly Asso-
ciation news-
letter
Switzerland
(March 1973)
Italy
(March 1973)
Nordic
(November 1973)
Schwelzerlsche
Gesellschaft fur
Chemlsche
Industrie.
Assoclazlone
Nazlonale dell
Industrie Chlmfca
(chemical Industry
association)
Institute! for
Vatten och Luft-
vardsforsknlng
(headquarters In
Sweden)
Federation of
Danish Industlres
8035 Zurich
Switzerland
via Fatebenefra-
telll, 10
20121 Mllano
Italy
Box 5607 Stock-
holm 5 Sweden
1A Vestarbrogade
Copenhagan,
Denmark
Or. Wegmann
Dr. Gut
Dr. Darlo Linares
H.O. Bouveng
H. Hargback
Mr. Hartlg
Mr. Christiansen
Association Association
members only members only
Primarily chem- Association
leal Industry members
Federation
members free
on request;
Monthly Bulletlr
Weekly publi-
cation of
listings
United Kingdom
(November 1974)
France
(November 1975)
United States
1975
United Kingdom
Waste Materials
Exchange (spon-
sored by the
government's Dept-
ment of Trade and
Industry)
Sponsored mainly
by the government
agencies, Delega-
tion aux Eco;
mles de Matleres
Premieres, admin-
istered at l RCHA
(a mixed public-
private research
organization)
1. St Louis Indus-
trial Waste
Exchange;
2. Iowa Industrial
Waste Informa-
tion Exchange
P.O. Box 51
Stevenage, Herts.
SGI 2DT U.K.
I RCHA
91710 Vert-le-Petlt
France
St. Lout* Regional
Commerce & Growth
Assn, 10 Broadway,
St. Louis 63102
CIRAS, Bldg E
Iowa State U. Ames,
Iowa 50011
Mr. J. Landvllle Manufacturing
Mr. A. Poll Industries
Jacques DeLoy, All Industries
Nuisances at
Environnement. j
40, rue du Collsee
75008 Paris
France
Roland C. Marauart Mainly chemical
others by
subscription
Mailing list Quarterly
of Interested Bulletins
organizations
Readers of the
publication
listed to the
right
Individuals &
Journals
United to Industries In Iowa
Classified ads
In the technics'
journals, Nui-
taneet et Environ-
nement and ChiTtie
at Actualite
Periodic list
Periodic list
66
-------
Financial Support and Viability
All clearinghouses have, to date, been subsidized. The U.K. began with a two-year
grant of £70,000 (about $38,900). While the costs of the Nordic's headquarters in Sweden
were paid by a three-year grant, each country's Federation of Industry contributed an equal
amount to operate its national clearinghouse office. The Dutch, Austrian, Swiss, Belgian,
German, and Italian clearinghouses are supported by their sponsoring industry associations;
their operating budgets were not reported, and indeed Italy responded that its costs are
simply included in its association's overhead budget. They charge no fees for their service.
These clearinghouses are thus not yet seeking to become financially self-sufficient.
Services and Operations
The basic service is simple and inexpensive. A clearinghouse receives offers of and
requests for waste materials, using a form such as shown in Figure A-l. The Clearinghouse
then codes them to preserve anonymity. It assigns a reference number to each item and
indicate whether it is an offer or a request, the type and quantity of material involved, the
general geographic location for purposes of estimating transportation costs, and sometimes
other information. The U.K. geographic code, for example, is as follows:
A Scotland E East Midlands and East Anglia
B Northern Ireland F Central, Southern, and Southeast England
C North of England G West of England
D West Midlands and Wales
Coded offers and requests are periodically published, sometimes in special bulletins
as in the U.K. (Table A-2) and more often in the sponsoring association's regular journal
for members as in Germany (Table A-3). The German clearinghouse issues not only its own
lists, but also includes those from regional chambers of commerce within Germany and
those from the Dutch, Austrian, Swiss, and Nordic clearinghouses.
Readers who see a material of potential interest then write to the clearinghouse, per-
haps using forms such as shown in Figure A-2. Such inquiries are forwarded by the clear-
inghouse to the listers, which may contact potential transfer partners directly to commence
negotiations. Clearinghouses usually do not participate in negotiations, but do try later to
leam whether or not they led to successful transfers. This basic clearinghouse service is
generally free, except sometimes for the publication's subscription fee; the St. Louis clear-
inghouse, however, charges a $5 listing fee to help defray its expenses.
67
-------
UK WASTE MATERIALS EXCHANGE
Notification Form
Company Name:
Address:
Tel. No:
Contract:
This Company Information is Confidential and Will Not Be publicly Disclosed
I should like the following items* included in the next edition of the bulletin:
Quantity & Timingt
Description #
Available
Wanted
space in the bulletin may be limited so please enter items in each section in order of
priority.
give amount per period eg gals/week. Note that the period should give some indication
of the regularity of the arising or requirement For instance a regular production of
1000 litres/month should not be listed as 12,000 litres/year, but a single annual discharge
would correctly be given as say 20 tonnes/year. Please use the following abbreviations-
day (D). week (W). month (M). year (Y); litres (LT), gals (GL). kilos (KG), tonnes (TE).
tons
-------
TABLE A-2
SAMPLE OF ITEMS LISTED BY U.K. CLEARINGHOUSE
SECTION A: MATERIALS AVAILABLE
REFR QUANTITY ACIDS ft ALKALIS*
AA019C" 35 TN/W WASTE SODA. CARBONATE 63%. HYDROXIDE 2%
AA023C 50 TE/D 15-20% SULPHURIC ACID WITH METAL SULPHATES
AB051A
1100 KG
POTASSIUM HYDROXIDE FLAKE
AB091C
AB150F
REFR
AA021C
AA024C
1500 TN/M
250 TE/Y
QUANTITY
1000 LB/W
25 TE/Y
30% SULPHURIC ACID. 45% AMMONIUM SULPHATE SOLUTION
SODA SLAG-TRACES OF ARSENIC, ANTIMONY AND LEAD
CATALYSTS
RANFY NICKEL CATALYST. 5% NICKEL DRY. ALKALI 4%
SPENT CATALYST. 4-5% VANADIUM PENTOXIDE
AB042D 50 TN PELLETISED CATALYST. 5% VANADIUM PENTOXIDE IN SILICA BASE
REFR QUANTITY INORGANIC CHEMICALS
AA008A 13 TE/Y 55% ZINC CARBONATE CHEMICAL WASTE
AA022C 500 TE/M 20% SODIUM HYPOCHLORITE WITH HYDROXIDE & CHLORIDE
AB054A
75 KG
SODIUM CYAN ATE
AB095F
AB096F
REFR
AA004A
AA010C
1 CT
2 CT
QUANTITY
100000 GL/Y
200 TN/Y
VANADIUM PENTOXIDE
ZANOX CADMIUM SALTS (CONTAINING CYANIDE)
ORGANIC CHEMICALS & SOLVENTS
METHANOL/WHITE SPIRIT/ACETONE/WATER. 40:20:20:20
PETROLEUM CHLORINATED SOLVENTS. APPROX 28% CHLORINE
AB067F
207 KG
SALICYCLIC ACID
AB076D
AB078D
400 GL/M STARCH SOLUTION
3 TE/W PHENOLIC TAP-15% FREE PHENOL
•Other categories not shown In this sample: Food Processing, Metals, Minerals, Miscellaneous, Oils and Waxes, Paper &
Board, Rubber & Plastics, Textiles & Leather.
•*AA •= item available within first 999 listings; AB = item within second 999.
•"Dotted line in each category precedes new listings since last Bulletin.
Source: United Kingdom Waste Materials Exchange, Bulletin No. 6, February 1976, listing 334 offers and 168 requests,
for a total of 1,002 of which 83 were new since Bulletin No. S. November 1575.
69
-------
TABLE A-2 (Continued)
SAMPLE OF ITEMS LISTED BY U.K. CLEARINGHOUSE
SECTION W: MATERIALS WANTED
REFR
WA027C
WA070E
WA305F
REFR
WA069F
WA071C
WA072C
QUANTITY
10 TE/D
UNSPECIFIED
2 TF/W
QUANTITY
UNSPECIFIED
20000 TN/Y
60000 TN/Y
ACIDS & ALKALIS
CAUSTIC SODA SOLID/SOLUTION, LOW IN HEAVY METALS
TANKER LOADS PHOSPHORIC ACID LIQUORS
CAUSTIC SODA SOLID
INORGANIC CHEMICALS
TANKER LOADS OF NITROGEN CONTAINING LIQUORS
WASTE GYPSUM, HYDRATE/ANHYDRATE. FINE POWDER PREFERRED
WASTE SLAKED OR HYDRATED LIME, POWDER OR CAKE
WA791A
WB044E
WB104F
REFR
WA003F
WA014C
30 TE/W
10 TN/W
10 TN
QUANTITY
UNSPECIFIED
5000 TN/Y
SODIUM SULPHITE/BISULPHITE
RESIDUES CONTAINING PHOSPHATES (NON-TOXIC)
SODIUM ANTIMONATE (NON-CHEMICAL GRADE)
ORGANIC CHEMICALS ft SOLVENTS
MIXED SOLVENTS
PHENOLIC BY-PRODUCTS
WBO33D
WB041G
WP132C
REF R
WA156E
UNLIMITED
UNLIMITED
UNLIMITED
QUANTITY
UNLIMITED
WASTE METHANOL
CLEAN OR USED ORGANIC SOLVENTS
CLEAN OR DIRTY MIBK, MEK
FOOD PROCESSING
BY-PRODUCTS FOOD INDUSTRY, VEGETABLE/ANIMAL. PREFERRED
DRY
WB016F
100 TE/N
DOWNGRADED STARCHES
THE INFORMATION LISTED ABOVE IS THAT SUPPLIED BY THE COMPANIES CONCERNED.
THE DEPARTMENT OF INDUSTRY DOES NOT ACCEPT ANY RESPONSIBILITY FOR THE
ACCURACY OF THE INFORMATION GIVEN AS TO QUANTITY OR QUALITY ETC.
PUBLISHED BY THE WARREN SPRING LABORATORY OF THE DEPARTMENT OF INDUSTRY
11/02/76
PRINTED BY CROMPTON PRESS LTD. LETCHWORTH
•Other categories not shown ere same as In Section A: Materials Available.
••WA = Item wanted within first 999 listings; W3 = item within second 999.
70
-------
TABLE A-3
SAMPLE LIST (PARTIAL) FROM GERMAN CLEARINGHOUSE
Verband
der Chemlschen Industrie a V
6 Frankfurt em Main
KarlstraBe 21
Postlach 11 9081
Telefon(0611)25S6-1
Fernschreiber 411 372 veil d
Nur (Or din Inlirntn Gebrauch
der Mllglledinrmen
^ferband der Chemischenlndustrie e.Y
Bellage zur Ausgabe 6/74
27. September 1974
Abfallborse:
Zusammenarbeit von VCI und DIHT
We herein berlehtol, rlchlen die Industrie- und Hindilsksmmern generelle, Ober den Bereleh der In der Chemle anlillenden Oder zu
verwertenden ROckstdnde hlnausgehende Abfallborun eln. GemaB der Vorelnbarung zwliehen dem Deutschen Industrie- und
Handelslsg (DIHT) und dem VCI llegl uns nun die zwe'le Nummer der .DIHT-AblallbOrse* zur Auswertung vor.
Wlr wlren Ihnen dankbar, wenn Sle die Abfallbdraen-Separal-Bogen an alle Slellen In Ihrem Unlernehmen wellergetaen wOrdan, die
slch mil RuckslHnden. die noeh kelne Ablalle slnd und die slch zur Wleder- und/oder Weltenenrandung elgnon, befassen. Oas sollten
nlehl nui die Slabsslellen IDr Umwellschuli, Insbesonder* die Abfallbeselllgung seln, sondern such die teller von elnsehlSglgen Pro-
dukllonabelrlebon und der Elnkaul.
VCI-Ablallb3rse
Wenn Sie sich (Or die folgenden Angobote Oder Nachfragen Inter-
essicren. schtciben Sie bmo unler der Chillie-Angabe an den
Verband der Chemischen Industrie e V — Abfallborse -. 6 Frank-
furt 2. Postlach 119081 Ihr Schreiben wlrd soforl an die belreflen-
de Firma weitergeleiiet
Angebole
A24S) Calclumcarbonat. ca SOV.Ig mil etwa 10% freiem Kohlen-
atoff
Rlchtanalyse
CaCOi 75 - 80V.
Ca(OH)t/CaO ea. 5V.
SIOi ea IV.
freier C ea 10V.
FluBspat. Mg- und Fe-Oxld. N-haltlge orga-
nlsche Verbmdungen. Wasser unter 0.1V.
Faroe • liefgrau bis schwarz
KorngroOe- ca 90V. unter G3 |i
Menge
Raum:
omlge 100 l/Monat
Boyern
4246) Sehlamm aus der Trockenadsorption der Wasserregenerati-
on mil etwa 20 •/• Fluor. Wassergehall bei ca. 105° etwa 49 •/.
Durchsehnills-Trockenanalyse
HiO (Hydratwasser) 5.60 •/•
AliOi
AIF
CaFi
MgF>
CaSO.
CeCOi
SIOi
NaiO
C
FeiOi
Menge-
Raum
15.70 •/•
6.17 V.
32.15 V.
6.83 •/•
13.08 •/•
1.27 •/•
1.28 •/.
5.00%
9.70V.
1.27 %
600 t/Monat
Nordrheln-Weslfalen
A247) Ammonlummtrallosung. ca 2—2.5 molar
mil Spuren von Uran
Menge- ca 500 m'/Jahr
Raum Hessen
A248) Nlokelsulfal. test bis schlammfdrmlg
ca 25 Vt Nickel im getrocknelen Rucksland
Menge ca 20 Passer a 200 I pro Jahr
Raum: Koln
A249) Natronsalpeter. veninrelnlgt mil ea. 6 % NaNO>
Spuren von Fe. Cr. Ca. Nl
Menge. ca. 1.2 t/Monat
Raum. Koln
A250) HelBveriormbares Schwerbeschichlungsmaterial
Qranulatform. (Wlederholung von A171)
aua 12.5 % elnes hoctmertigen Kaulschuks.
2.5 V. Polyslyrol sowie Gummihlllsstolfen. Fullsloffan
Menge. ca 7000 kg emmalig. in Sacke abgepackt
Raum- Hessen
A251) Naphthalln mil Tetratin verunrelnlgt
Menge: ea 2 t/Monat
Verpaekung 2001 Spannrmgfaaser
Raum Nordrhem-Weslfalen
A252) Kaligllmmor (Muscovit) wasserfeueht
(TeilchengrdBe <5 |i)
folgender Zusammenselzung. ca. 60 V. Glimmer
ea. 2-3 •/• Natrlumchlorld
Real Wasser
Menge- ea. 20 t/Monat
Verpaekung • nach Absprache
Raum: Rheln-Maln-Gebiel
A253) Zlnk-Kalkgemlsctt
Wassergehall ca 50-60%
Zlnk ca 20 •/<,
Calcium ca 5 •/•
Paplerreste ca. 2V«
Menge- 10-15 t/Monat
Verpaekung • 10-l-Contalner
Raum. Nordrheln-Weslfalen
A254) Regenerlertes Ldsungsmlttelgemlsch aua Methyfenehlorid
und Aromalen. HOsslg.
Menge: sporedisch 90004
Verpaekung lose ozw. FSsser
Raum: Koln
Source: Chemische Industrie, monthly journal of Germany's
Chemical Industry Association.
71
-------
UK WASTE MATERIALS EXCHANGE
Contact Request Form 1
Company Name:
Address.
Tel. No:
Contact:
This Company Information is Confidential and Will Not Be Publicly Disclosed
I am interested in obtaining the following items listed in the available section of
the bulletin:
(N.B. The reference numbers of these items should begin with the letter A).
Ref. No. t
^^^^
Quantity #
— S-^-^^
Description t
• — «^
Contact Request Form 2
Company Name-
Address:
Tel. No:
Contact:
This Company Information is Confidential and Will Not Be Publicly Disclosed
I am able to supply the following items listed in the wanted section of the bulletin:
(N.B. The reference numbers of these items should begin with the letter W).
Ref No. t
Quantity #
Description t
Contact Request Form 3
Company Name:
Address:
Tel. No:
Contact:
This Company Information is Confidential and Will Not Be Publicly Disclosed
I am also interested in obtaining the following items listed in the wanted section
of the bulletin-
(N.B. The reference numbers of these items should begin with the letter W)
Ref. No. t
Quantity #
Description t
FIGURE A-2 U.K. FORMS FOR INQUIRING ABOUT WASTE OFFERS AND REQUESTS
72
-------
Some variations of this basic pattern exist. Lists of the Nordic clearinghouse, foi
example, include offers not only of scrap wastes, but also of surplus stocks and plant
capacity for recycling or disposal. It also conducts research and provides technical advice
on improving the quality of wastes, so as to facilitate recycling. About 200,000 Swedish
crowns ($46,000) are available for laboratory work or a pilot demonstration. The Danish
Federation of Industries, for example, learned of acid wastes from the medical industry
which seemed potentially suitable for acid pickling in the iron industry, except for trace
organics and other impurities; a pilot demonstration removed the troublesome impurities,
and once it was shown to work well, the transfer was completed.
Clearinghouses distinguish between two types of material: continuous waste, produced
by a plant's normal operations; and occasional or episodic wastes in odd lots, for example
products failing to meet specifications, surplus inventory, and products damaged in trans-
portation or by fire or flood. Both continuous and episodic wastes are accepted for listing.
However, if two partners find a continuous waste which each wishes to continue trans-
ferring, then they have no need of the clearinghouse service after its first referral; in time,
therefore, clearinghouses are likely to receive greater proportions of episodic wastes, which
may also be more difficult to transfer.
Germany's clearinghouse cannot, under that country's Waste Disposal Act of 1972,
list materials designated as "wastes" (Abfdlle), but only "residual materials" (Ruckstande);
in practice, this does not inhibit transfer, since the material's owner chooses the designa-
tion. The German clearinghouse handles neither waste oil nor radioactive wastes because
their disposal is regulated strictly. Moreover, its policy excludes residues for which there
is already an established market, such as paper, plastics, textiles, and metal scrap.
The Nordic and U.K. organizations handle a broader range of wastes, which they
classify.as follows (United States SIC numbers of typical generators appear in aprentheses):
Nordic
Plastics (30)
Textiles (22) and Leather (31)
Paper-Containing Materials (26)
Solvents and Waste Oils (286. 29)
Acids and Pickling Liquors (281)
Inorganic Chemicals (281)
Organic Chemicals (286)
Slags. Sludges, etc.
Miscellaneous
United Kingdom
Acids and Alkalies (281)
Organic Chemicals and Solvents (286)
Metals (34)
Minerals (10.14)
Oils and Waxes (29)
Paper and Board (26)
Rubber and Plastics (30)
Catalysts
Textiles (22) and Leather (31)
Food Processing (20)
Inorganic Chemicals (281)
Miscellaneous
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The Nordic clearinghouse tries to avoid listing both established secondary materials and
trash wastes clearly lacking productive value. The U.K. clearinghouse seeks a variety of
participants, but does not list such easily marketable items as scrap metals or second-hand
equipment.
U.S. VERSIONS OF THE EUROPEAN MODEL
In November 1975, after several months of planning by a volunteer task force, the St.
Louis Regional Commerce and Growth Association (RCGA), analogous to chambers of
commerce elsewhere, began its industrial waste clearinghouse service, the first in the United
States, patterned after the European clearinghouses. Although the East-West Gateway
Coordinating Council, a council of local governments in and around St. Louis, helped launch
the clearinghouse by providing office space for the task force in its early days, it later with-
drew in favor of the RCGA in recognition of industry's reluctance to provide potentially
sensitive information to any organization associated with governments and their regulatory
powers. RCGA staff spend only a few hours weekly preparing offers and requests for pub-
lication quarterly.
The volunteer task force, comprising about 18 persons from industrial companies,
waste processing firms, consultants, and local and state governments, sets general policies
and provides technical skills. Significant amounts of time, and thus professional skills and
judgment, were contributed initially by some government officials, industrial companies,
and consulting firms; for example, one senior environmental control engineer with a major
chemical company, spent about 16 days over six months as chairman of the task force, and
five or six other persons spent one or two days monthly. Other forms of hidden subsidies,
not formally logged as costs but important, are the secretarial time, telephone bills, and
duplicating costs incurred by these volunteers' companies. Moreover, the list, in addition
to being mailed directly to some 500 names throughout the nation, is to be published with-
out charge by several Missouri industry and environmental journals. Still more important
for the clearinghouse's credibility with industry is the approval and professional endorse-
ment of major local companies. Thus, the full start-up and operating costs are not known
accurately even by its sponsors. Federal and state governments have not provided any direct
support.
The first list (Table A-4) contained 43 offers and eight requests, more than the organ-
izers had expected. Nineteen of the 51 listings came from beyond the St. Louis area, and
as far as the east and west coasts. Moreover, during its first three months, the clearinghouse
received some 350 inquiries about its procedures, eligibility of specific wastes, and possibili-
ties for reciprocal arrangements with civic and private groups wanting to offer comparable
services elsewhere.
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TABLE A-4
FIRST LIST (EXCERPTS) FROM ST. LOUIS CLEARINGHOUSE
ITEMS AVAILABLE (TOTAL - 43)
Code Identification: A1-1
Kern: Coated Abrasive Scrap-Mixed Pieces/Sizes, both doth end Paper Backings; Grit Range 16-400 Unsorted.
Availability: Ten Tons per Month, 350 Pound Bales.
Location: Mid-South.
Code Identification: A1-2
Item: Spent Nitric Acid Strip with Approximately 1M Pounds Copper Metal per Gallon Plus V4 Pound Nickel Metal per Gallon.
Availability: 3.000 Gallons at this Time.
Location: Local.
Code Identification: A1-3
Item: Centrifuge Cake-10% Plus Moisture; Sollds-Approximately 84% Sand, 14% Glass, 2% Iron. Average Particle Size 20
Microns.
Availability: 200 Tons per Week.
Location: Local
Code Identification: A1-4
Item: Thermoplastic Resins, Reground; Verious Types and Colors. Contaminated from 1% to 50%; Average Contamination
5% with Other Resins. Average Particle Size 3/16 Inch Diameter.
Availability: 50,000 Pounds per Month.
Location: Midwest.
ITEMS WANTED (TOTAL - 8)
Code Identification: W1-1
Item: Liquid Caustic Soda 25-50% by Weight/Volume.
Quantity Desired: Not Specified.
Location- Local.
Code Identification: W1-2
Item: Organic Waste Solvent-Ketones, Aromatics, Aliphatic, Chlorinated Solvents, Alcohols, or Blends of Same. Must Contain
6O% or Higher Solvent and be Pumpable by Normal Means.
Quantity Desired: 7,000 Gallons per Day.
Location: Local.
Code Identification: W1-3
Item: Tin By-Products or Waste Products with 10-15% Tin or Higher.
Quantity Desired: 25-60,000 Pounds per Week.
Location: East Coast
Code Identification: W1-4
item- Spent Nickel Catalyst Containing 10-12% Nickel, Dry Basis, or More.
Quantity Desired: 200,000 Pounds per Month.
Location: East Coast.
Source: St. Louis Regional Commerce and Growth Association, February 1976.
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Other clearinghouses are in early stages of planning or operations at Iowa State Univer-
sity, the State of Washington, and the Houston Chamber of Commerce.
OPERATING EXPERIENCE
Comprehensive and accurate data about wastes and transfers are difficult to obtain,
due mainly to needs of confidentiality and incomplete follow-up of referrals. Four older and
larger clearinghouses, however, have analyzed and reported some numerical data:'9"22
Netherlands
(1st 18 months)
Germany
(2nd 100 listings)
Scandinavia
(1st 10 months)
United Kingdom
(1st year)
Listings Inquiries
80 Not available
100 375 (for 70 items)
142 250
833 2,640 (for 618 items)
Transfers Completed
via Clearinghouse
18
54
Clearinghouses cannot always obtain complete information from clients on the results of
referrals; moreover, some materials, even though listed,find users through channels other
than the clearinghouse.
Data in reports, lists, and interviews showed a number of patterns common to clear-
inghouses in Europe and St. Louis:
• Their periodic lists (weekly to quarterly) usually carry many more offers than
requests.
• Only about ten percent of wastes offered are transferred.
• Of those transferred, a large proportion are recognized by-products, such as
concentrated acids, certain catalysts, and residues with high contents of
metals.
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• A large proportion, both in number and in volume, of wastes offered but not
transferred are materials such as dilute acids and ferrous sulfate: although
these have potential uses, they are often too low in value, too diluted, or
offered in quantities too small to justify transportation or reprocessing costs.
• Major barriers to successful transfer are transport costs, too low a concentra-
tion of valuable material, and impurities too costly to remove; the last prob-
lem points to the importance of generators keeping wastes separated, rather
than mixing them, so as to facilitate analysis, matching, and reprocessing.
• Major receivers of scrap wastes transferred via clearinghouse referral appear
to be chemical dealers and reclaimers, which suggests that they reprocess
the materials before selling them to ultimate users.
• Continuous waste streams offered are far greater, in number and volume,
than one-time offers of off-specification or damaged materials.
• Volume of activity on the older clearinghouses declined after an early peak,
which suggests that (1) the backlog of transferable scrap wastes was worked
down and (2) trading partners identified to each other by clearinghouses later
continued to negotiate transfers directly.
• The more likely clients for the clearinghouse service are companies with little
or no technical skills in industrial chemistry.
• Useful functions performed by clearinghouses, in addition to identifying
scrap wastes and introducing generators and users, are (1) educating industry
generally about possibilities of waste transfers, (2) broadening the markets
for chemical reclaimation firms, and (3) collecting inventory data, incom-
plete but better than now available, about both scrap wastes available for
transfer and trash wastes needing disposal.
In addition to these points which appear to be common to most clearinghouses, some
highlights relate to only one. In the Netherlands, a firm designing a new plant asked the
Dutch clearinghouse which of the several production processes being considered generated
wastes which might be transferred successfully via the clearinghouse. The German clearing-
house pursues a strict policy of not listing wastes which are clearly trash; consequently, it
shows a success rate higher than those of other clearinghouses, with almost 20 percent of
listings leading to transfers. In the United Kingdom, savings to industry clearinghouse-
assisted transfers are estimated to be about £2 million (about $3.6 million), which vastly
exceeds the clearinghouse's operating cost.
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ADVERTISING WASTES IN TECHNICAL JOURNALS
In France, Nuisances et Environnement began in 1974 a column listing offers and
requests (Table A-S). Advertisers are asked to indicate quantity and composition of mate-
rials, frequency of availability, and general geographic location. The response was initially
small, but has reportedly increased since the formation of the French clearinghouse, which
now publishes listings both in this journal and in another, Chimie-Actualites. In Japan,
a chemical monthly charges companies $30 for an advertisement indicating the waste's
characteristics, quantity, and location. In Canada, Canadian Chemical Processing publishes
ads free of charge; thus, the column produces revenue only to the extent that its avail-
ability increases purchases of the journal. In 1974 and 1975, it listed only six-to-eight
notices yearly.
Chemical journals often carry advertisements for surplus raw materials and by-
products; these columns could also advertise scrap wastes.
Unlike the official clearinghouses, the technical journals do not appear to screen
listings for appropriateness or to follow their referrals to learn the results. They do help,
however, to collect information that could be used by potential clearinghouse operators
to gauge the market, and to educate generators and potential users about the possibilities
of transferring wastes.
COMMERCIAL VARIATIONS
Two new services may demonstrate in time the market potential for a type of transfer
service which is neither subsidized on the European model nor capital-intensive as are
materials exchanges, but which can survive as an economically viable enterprise.
The Natural Resource Recycling Exchange, Boston, Massachusetts, was organized in
late 1975 by men experienced in advertising, banking, and commodity trading. They con-
ceive of a data bank large enough to justify handling by a computer programmed to match
offers and requests. They plan to retain scientific or engineering consultants to seek or
develop uses for wastes without readily apparent uses. Although the sole purpose of this
enterprise is to transfer information, it differs from the European and St. Louis clearing-
houses in three ways. First, it is a profit-seeking venture, charging fees in the manner of
stock or commodity exchanges: clients must pay one fee to join the service, another each
time they enter an offer or request into the computerized data bank, and a commission on
each transfer completed successfully. Second, it is not supported, financially or profes-
sionally, by industry associations or government laboratories; thus, it may lack the free
access to technical talents which other exchanges use to identify wastes and possible reuses;
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TABLE A-5
SAMPLE LIST (PARTIAL) FROM FRENCH CLEARINGHOUSE
LA BOURSE DES DECHETS ET DES SOUS-PRODUITS
/3&®^x&
>•»» ^-llj
quide -r cnstaux 10 l/mois tuts
ler 2201 Dpt 77
Ecr « la Revuen* A U7qui Ir
11 16 17 35 30 31 37 44 5I-S4-56 51
5962634*71 7677 78 69
Ecr a la Revuen* A I7iaui ir
NUISANCES &
ENVRONNEMENT
Solvent use white spirit essence
loluene 10 t/mois Ibts metal ou
plaitlque Oept (Semoy)
Ecr * la revuen* A liSgui Ir
Sdure copeaun cedre vrac PCI
1500 CO I/k 1.350 l/| Dpi 77
Ecr a la Revuen' A IMqui Ir
Resldut distillation phenol
polyalkyts tertiobutyls phenols h
Profiles extrudes de neoprene
vulcanise sacs 10k si/mois
Profiles extrudes d'e'hylene pro
nylene IE POM) vulcanise sacs 10
k7t/mois Dpi 95
6cr a la Revue n' AI9«quitr
Boun peiietables 85.4 «b eau
15 H cellulose 45 "o ma' mint
riles (CaSOj Zn (OHI, Chaux)
JO t/iour Dpi 01
Ecr a la Revue n* A It! qui tr
Residus disrlilaiion p oelyl
phenol - p oelyl el isomeres
dioctylphenol pateux 10 f/moij-
tu'slerl20l Dpi 77
Ecr a la Revue n* A Ita qul Ir
Residus distillation nonylpherol
- eolyaikylphenois pa'eux ID
i/mo.sluts ler 2201 Opt 77
Ecr a la Revue n< A 1*9 qui tr
Lmeres hssus endum 60 «* PVC
10 l/mois en bennes pa'e plasli
solPVCIOls: l/mois Opt01
Ecr Ala Revue n'A 170 qui Ir
Pale 20 IS % Cu metal + laibles
quanhtes metaux precieux (Au
Ag Pt) vrac • environ 10 I/pour
Mai 76 Opt II
Ecr a la Revue n' A 171 qui ir
Residul metalliques 10 «t Zn
10 *b Pb 60 •> Ft & 220 mm 30
I/moil M creuseti graphite cas-
jes/mou epan 20 mm vol 120 I
dmpregnei zn Pb Pel Opt 93
Ecr a la Revue n1 A I71ctui rr
Chaux de carbure contenant lu
lurej - Sulla t« chloruret
ammoniaque tail d • I.I ou
750 t/mon dpt IS 650 t/m
Opt 54
Ecr a la Revue n* A 174qui ir i
I
kg alummate de sodium, hqul
lull 200 IIQ 31 376 Opt 93
f .tr a la Revue n' A109qm Ir
75 kg alcool stearylique fOts 100 I
iq3117« Optn
Ecr a laRevuen* AllOquiir
100 kg liquids saccharaie de ler
glycerine fuls SO I iq 31 3 76 Opt
13
Ecr a la Revue n* Altlquilr
23 kg pcntachlorure phosphor*
(uldeboisiq31 376 Dpi 93
Ecr a la Revue n> A III qui Ir
a 5 t mousses de polythene fm
sees en balles -
I 500 lOts polythene nolr el grls
Dpi II
Ecr a la Revuen* AD3qui tr
Dispose de dechels rev«lemenls
sols plajiiquej. de revetements
sols textiles de matieres premit
res diverscs (PVC. pepier Kralt.
canon, etc) 10 t/iour de chaque
composition d'echantilions sur
demande Dpt 08
Ecr a la Revue n* A IMqui ir
Mousse 80'a polyureihanc +
20 °o papier 7 a 10 t/mois Dpi 52
Ecr a ^a Revuen* A tsiqui tr
Cypse sohde a M *i eau + ctilore
variable bennes ID mJ 40 l/i
Amianie + eau + traces chlare -
bennes 7m1 14 l/mois Dpi 31
Ecr a la Revue n* A121 oui tr
Slocks 18 solvents a revalorise
200 a 35 800 f selon cas (alcoois
ce'ones carBures aiipnaiiques ou
aromatiques TIM Pllistesurde
mande Opt 62
Ecr a la Revue n* A 177 qui Ir
ACHETONS chutes et dechets la
bnc textiles louies fibres lots
textiles et lusus hors cours Paul
KATZ Succ B P 31 67013
STRASBOURG Cedex Tlx B9003S
Tel 188) 39 10 SO
Grande socitte de recuperation
recherche malieres plastiques
— l.lmsde polyethylene en balles
— decnets polystyrene choc/ens
tal
— dims de polypropylene neulres
PVCrigideouplastifi«
ABS SAN brove ou en plaques
Enlevement par camions 20 ton
nes France Beigique Suisse
Ecr alaRevuen* AKOqui Ir
Solvents a rccuptrer ou a recy
cler louies regions Dpi 69
Ecr a la Revue n* A131 qui tr
Recherche solvents propres. im
pursousouilles Opt91
Ecr a la Revu
-------
it may also find difficulties in overcoming reluctance of some waste generators and potential
users to deal with an organization of unknown reputation. Third, in order to sell enough
services to survive economically, it cannot wait passively for clients to call in waste offers
or requests; instead, it must go into the marketplace to promote services and seek clients
actively.
Trans Chemical Corporation, a Miami-based chemical trader began in late 1975 to offer
a computerized matching service, "Chemscan", which monitors about 250 chemical prod-
ucts. Companies can submit offers and requests without charge. These appear weekly in a
computer printout of about 1,200 buy-and-sell orders, bought by about 150 subscribers
at a price of $15 a week. Interested subscribers can then contact each other to negotiate
deals directly.
"Chemscan" lists chemical products rather than scrap wastes. However, this or a similar
service could be extended to scrap wastes if the market proved large enough. The fee of $15
per week, or $780 per year if 52 lists are issued, yields a gross income of $117,000 if 150
subscribers remain the full year; this is presumably high enough either to cover costs and
return a profit, or at least to cover most costs for a service which Trans Chemical considers
an effective "loss leader", a technique for attracting clients for other lucrative services. The
major attraction of "Chemscan" is volume—using its computer to collect and display far
more information to many more customers than can the ordinary broker with paper and
pencil roving the floor of a commodity exchange. For subscribers, their chances of identify-
ing suitable trading partners make the $15 per week fee well worthwhile; in fact, many
probably cannot afford to pass up such chances for such a low price. Similarly, the St.
Louis and European clearinghouses could tally their costs accurately and then design a
schedule of both listing and subscription fees according to their estimates of the numbers
of listers and subscribers willing to pay; the rate schedule could be designed merely to cover
costs exactly, or to return a surplus or profit which would help finance such other services
as limited technical consulting.
Trans Chemical no doubt tries to sell its "Chemscan" service widely. However, it
remains a passive form of clearinghouse, since after listings are published the initiative for
bringing trading partners together rests entirely with themselves. From a business viewpoint,
such a listing service has little direct interest in whether material is later transferred, because
its economic survival depends on collecting its listing and subscription fees.
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APPENDIX B
MATERIALS EXCHANGES
CHARACTERISTICS
A few small companies offering a broad range of chemical reclamation and consulting
services are also serving, or interested in serving, as materials exchanges. Examples exist
in both Europe and the United States; the examples given below are intended only to
illustrate this type of transfer agent and not to suggest that these are the only companies
engaged in activities relevant to transferring scrap wastes.
The number of true materials exchanges is smaller than that of information clearing-
houses. A key characteristic is that these exchanges were begun and are operated by persons
who are both entrepreneurs and have extensive knowledge and experience in chemical
processing. Because the exchange service is difficult and risky, it is typically offered together
with other services. Details of the financial and technical operations of existing exchanges
are not known, since these are private business organizations and do not publish lists of
scrap wastes available. It is clear, however, that both technical knowledge and imagination
are essential requirements for success.
TWO EXAMPLES
A Dutch Company: Wimborne-CPR
Wimborne-CPR is a chemical processing and reclamation firm. It was formed as a
joint venture between Wimborne Chemicals Ltd., a British chemical reclamation company,
and Centrale Potas Raffinaderij, whose principal activity today is trading in potassium and
sodium carbonates and other salts. It has a close working relationship with the Dutch
information clearinghouse and in many ways complements the latter's efforts.
The company originated from an interest in diversifying on the part of CPR, whose
potassium carbonate extraction operations had declined. Discussions with the Dutch Indus-
tries Federation and with government authorities led to the idea of using CPR's resources
to reclaim valuable products from waste materials. In the course of subsequent market
research, CPR made contact with Wimborne Chemicals, and the companies decided on an
association.
Both of the joint-venture partners are members of larger groups: Wimborne is part of
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the Shirley Aldred group, which in the past has had interests in wood chemicals and today
has strong interests in activated carbon; CPR is ultimately held by the Dutch sugar industry
(two companies), although until 1965 the Belgian sugar industry also participated. This
matrix of relationships within the two parent groups enables Wimborne-CPR to provide a
comprehensive chemical waste reclamation service with little, if any, technical staff of its
own and limited processing facilities. For much of the latter, it uses subcontractors, mainly
located in the Netherlands, the United Kingdom, and Belgium. Some of these are major
chemical companies with spare capacity. Thus, the company's activity consists largely of
using its contacts and affiliations to provide technical and processing solutions on a case-
by-case basis. It is the only Dutch company performing such a service on a large scale.
Part of the company's role is furnishing advice to companies with disposal problems.
It tries to become involved at the earliest possible stage, since it can then propose solutions
which render the materials capable of processing. For example, one company had built a
huge storage tank which received three incompatible waste streams, including paint and
machine-tool lubricants. The company wanted someone to take a regular quantity of the
contents for reprocessing, but approached Wimbome-CPR only when the tank was well
on the way to being full. Had each of the three streams been channeled to separate tanks,
they might all have had appreciable value for reprocessing.
Wimborne-CPR sees itself as providing the commercial link (i.e., at a profit) between
buyers and sellers of chemical wastes, a role which is essential but which the Dutch informa-
tion clearinghouse does not attempt to fill. Offers of waste material received by the clearing-
house are sent immdediately to Wimborne-CPR, which accounts for a large share of the
transfers actually completed with aid from the clearinghouse. While the clearinghouse is an
important source of offers and requests, Wimborne-CPR also gets them directly as a result
of its numerous contacts in the process industries. Wimborne-CPR does not advertise,
although it does issue a small, two-page promotional pamphlet.
The company's services are paid for both by the company generating waste chemicals
and by the buyer of the purified products.
Zero Waste Systems, Oakland, California
Newer and smaller than Wimborne-CPR, Zero Waste Systems (ZWS) also offers a broad
range of services. ZWS was founded in 1973 by a physical chemist. The staff includes a chem-
ist, support persons for lab and office work, and a network of Bay Area consultants. ZWS
offers to handle surplus chemicals, collect industrial processing wastes, sell recycled and
surplus materials, and provide consulting aid in minimizing waste control problems. Thus,
ZWS is both a materials-handling exchange and a surplus chemicals dealer and consulting
firm specializing in industrial processing wastes. ZWS appears to operate on tight profit
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margins and to depend for success upon technical experience, imagination, many industrial
contacts, a keen knowledge of current markets and prices, and entrepreneurial vigor in
finding and pursuing market opportunities. ZWS, like Wimborne-CPR, farms out much work
to chemical job shops or plants with spare capacity. ZWS's objective is to neutralize or find
new markets for all industrial wastes, rather than to dispose of them into the environment.
Several aspects of ZWS's business environment or circumstances deserve mention for
the guidance of potential exchange operators elsewhere. A major assist comes from Cali-
fornia's hazardous waste control law and regulations, which require generators to report in
detail on all wastes sent out for disposal. Plant managers, to save the cost and bother of
lengthy reporting, prefer to sell or even give wastes to ZWS. (However, ZWS can survive by
accepting only those wastes containing scrap materials of known value. It does not accept,
for example, dilute sulfuric acid or chromic acid, for which there is little or no market.)
Another and related major assist comes from the Bay Area public's environmentally-
conscious attitude. ZWS receives much free publicity from local news media. It is aided at
working levels of many companies by technicians who make an extra effort to send wastes
to ZWS rather than to disposers. Zero Waste receives many referrals from state and local
agencies which do not know how to handle hazardous wastes.
Public attitudes, the wealth of technical talent in Berkeley, and the concentration of
industrial plants all make the Bay Area ideal for ZWS. Although the firm reports that it
often has more work than its staff of five can handle, demand is not stable enough at liigh
enough levels to permit an increase in staff. Los Angeles offers a larger industrial concentra-
tion and market area and would be a logical candidate for future expansion. Although
most transfers probably occur within the Bay Area, ZWS reports occasional shipments as
far as Texas when the economics of the transfers are favorable enough. Part of the ZWS
business strategy is not to limit itself, as do some dealers, to only one industry or area,
but rather to offer services to many industries and nationally.
Another part of its business strategy is to fill a gap in the chemical materials
market structure by serving the needs of companies which either choose not to or do not
know how to transfer scrap wastes in small quantities. This suggests, as does some infor-
mation from Europe, that the most likely customers for transfer services, both information
and materials, are companies with little or no technical skills in industrial chemistry.
However sound its business strategy in theory, ZWS seconds the experience of others
that the materials exchange staff must be persistent and aggressive both in identifying waste
and in finding appropriate matches. Its staff sometimes meets generators who at first do not
recognize having significant wastes in their plants, only to do so later in the conversation
when asked about them specifically; generators are not trying to cover up the existence of
wastes, but simply overlook them in response to the initial question. Indeed, it is quite
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logical that processing residues intended for disposal are not perceived by generators as
"scrap chemicals" having reuse value. This illustrates the importance which attitudes play
in recognizing scrap value in wastes, and thus in seeing the usefulness of an exchange. It
also underscores the importance of keeping wastes segregated, so as to facilitate analysis,
matching, and transfer.
Zero Waste Systems prides itself on being a small and innovative enterprise. It sees
itself pioneering a new industry, and offering the best model for a waste materials exchange.
It foresees a national network of regional waste exchanges. Its own need now is for a major
data bank to support its technical procedures and entrepreneurial skills developed during
its first two years.
A NEW EXCHANGE CONCEPT
The newly opened American Chemical Exchange does not transfer scrap wastes. Yet it
deserves mention because it is trying to prove an exchange concept and procedures which
may be useful for materials exchanges which deal in wastes.
American Chemical Exchange, Inc. (ACE), of Skokie, Illinois, resembles Trans Chemi-
cal's "Chemscan" service (Appendix A) in featuring a computerized matching service and
mass exposure of information. It also specializes, by making trades only in about 75 manu-
factured chemical products. But whereas Trans Chemical is only a modern classified ad
service transferring information, ACE is a broker interposed between buyer and seller.
A majority of ACE's clients are small companies. They join ACE by paying a fee
($250) analogous to the subscription fee for "Chemscan" and the membership fee for the
National Resources Recycling Exchange (Appendix A). With 90 clients in early 1976, 50
inquiries each day, and the eventual possibility of 1000 clients, ACE could have a financial
base of $250,000. But the important source of its income will come from commissions,
ranging between 1% and 5%, on any trade it makes. After placing a firm order, a seller
must deposit 10% of the sales price into an escrow account to ensure availability of the
chemical. Similarly, a buyer must deposit the entire purchase price into the escrow account
within 24 hours. ACE thus performs a needed intermediary role to resolve the constant
question of whether goods or payment should move first.
As in a stock exchange, buyer and seller do not know each other but negotiate only
through ACE. Once a deal is struck, ACE handles the transfer of both funds and the chem-
icals to keep identities secret. This classes ACE as a materials exchange. However, the func-
tional requirements for transferring a manufactured product are less than those for a scrap
waste. With a standard product, the seller, buyer, and exchange all know its characteristics,
which are backed by a warranty and the reputation of the seller and ACE. But with a
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waste-almost never standard—its characteristics must be specially analyzed so that the
potential users can judge according to their process specifications. Thus, technical compati-
bility requirements exist for both a product and a waste, but in paractice ACE is able to per-
form mainly as an information and financial broker, while a waste materials exchange like
Wimbome-CPR must also perform analytical and reclamation functions. Although ACE now
has the information technology and brokerage skills for extending its services to include scrap
wastes, it would have to add the technical and marketing skills required to deal success-
fully in these materials. Moreover, it would of course have to see attractive processing profit
opportunities in the business of brokering wastes, which is inherently more risky than the
business of brokering manufactured chemicals.
However, ACE's best market seems similar in an important respect to the natural mar-
ket of waste exchanges. Large chemical companies have within their staffs enough knowledge
and skills to identify and arrange their own spot trades. But these functions often strain the
capacities of smaller companies, which are therefore forced to seek help from a broker.
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APPENDIX C
DATA AND METHODS
IDENTIFYING SCRAP WASTES AND THEIR USES
Recognizing and verifying a potential use for an industrial waste constitute the heart
of the transfer process. It is a creative act, since it makes possible something which did not
seem possible before; the discovery of value in a waste previously considered as trash is
the first step in transforming it into scrap.
Therefore, experience, knowledge of chemical processing, and, especially, imagination
are essential for identifying possible uses for wastes. Naturally, published sources can
stimulate the imagination, and young graduate chemists and chemical engineers can assist
in initial screening steps. But there are no substitutes for practical processing expertise
and first-hand knowledge of industrial practices. Of course, no one person, or even a small
group, can be familiar with detailed operating practices and the many industries which
might use wastes. So, a variety of experts should be consulted to help verify initial judge-
ments and to assess the economic and technical feasibility of potential transfer oppor-
tunities. (However, expertise can result in negativism—emphasis on reasons why new ideas
cannot succeed and should not be tested. This is why imagination, and some courage,
are essential qualities.)
Various publications can help in initial identification of potential uses. The main
ones are:
• Chemical Week in every issue groups classified ads under the head ings: "Chem-
icals for Sale/Wanted", "Chemicals for Sale", and "Chemicals Wanted".
Most ads are to buy or sell surplus chemicals. A few, mostly from dealers
and reprocessors, request chemical wastes. Occasionally, an offer appears
for waste materials. The requests recently have been for solvents, spent
catalysts (Co-Cu, Cu-Zn, Cu-Cr, etc.), slurries and sludges with a minimum
30% metallic content, ethanolamines, and glycols.
• Chemical and Engineering News is useful mainly for current information
on prices and supplies of chemical commodities, which should be monitored
closely.
Preceding page blank 87
-------
• Chemical Marketing Reporter, is useful mainly for determining demand
and price trends for chemicals. As demand and price increase, the economic
feasibility of recovering the valuable components from waste materials im-
proves
• The Merck Index of Chemicals and Drugs, New Jersey: Merck & Co., Inc.
• Chemical Origins and Markets, Menlo Park, Cal.: Stanford Research Insti-
tute, Chemical Information Services, 1967; includes product flow charts
and tables of major organics and inorganics.
• Stanford Research Institute, Directory of Chemical Producers—United States
of America, Menlo Park, Cal.: SRI.
• Kirk-Othmer Encyclopedia of Chemical Technology, 2nd ed., 6 v., New
York, Interscience Publishers, 1963.
• Considine, Douglas M., Chemical and Technology Process Encyclopedia,
New York: McGraw-Hill.
• Hackh's Chemical Dictionary, Fourth Edition, revised and edited by Julius
Grant. McGraw-Hill, New York, 1969.
• The Van Nostrand Chemist's Dictionary, D. Van Nostrand Company, Inc.
Princeton, New Jersey, 1953.
• The Encyclopedia of Chemistry, Third Edition, edited by Clifford A. Hampel
and Gessner G. Hawley, Van Nostrand Reinhold Co., New York, 1973.
These dictionaries list industrially-produced chemicals and their uses. A
dictionary is entered according to the principal component of the waste.
Potential uses are selected by engineering judgment about the sensitivity
of the use to the waste's purity. In general, the less critical purity is to the use,
the greater the possibility for using the waste "as-is", or with only minor
pre treatment.
• R. Norris Shreve's, The Chemical Process Industries, (New York: McGraw-
Hill), a classic textbook, provides flow diagrams and raw materials require-
ments. Those wastes which appear to match the properties raw materials
in a process represent potential substitutes.
88
-------
• EPA's national industry studies8"16 also provide process flow diagrams and
descriptions of raw materials feedstocks.
Table C-l lists a sample of processes, their wastes, and potential uses for the wastes.
This list is by no means exhaustive;it was developed both to explore uses for wastes described
by EPA's industry studies, and to suggest possibilities to Philadelphia plant managers during
interviews. Many more wastes and uses appear in two categories (organics and inorganics)
than in the six others (acids, alkalis, oils and waxes, catalysts, polymers and resins, and
miscellaneous); this imbalance does not reflect the actual proportion of transfer oppor-
tunities among industries, but rather variations in the data bases available.
A SAMPLE TRANSFER AREA: THE PHILADELPHIA SMSA
Characteristics, Industries, and Wastes
Standard Metropolitan Statistical Areas (SMSAs) are designated by the U.S. Bureau
of the Census to standardize urban areas for purposes of consistency and comparisons. An
SMSA's boundaries are drawn to include both a core city and its natural economic suburbs
and hinterlands. The Philadelphia SMSA (Figure C-l) encompasses nine counties: Bucks,
Chester, Delaware, Montgomery, and Philadelphia in Pennsylvania; and Burlington, Cam-
den, and Gloucester in New Jersey; its urban core consists of Philadelphia and Camden.
The SMSA measures about 60 miles along its major east-west and north-south axes. It
abuts other industrially important SMSAs, Trenton, Allentown-Bethlehem-Easton, and
Wilmington; moreover, Newark, Jersey City, Patterson-Clifton-Passaic lie 60 miles northeast.
The Philadelphia SMSA, the nation's fourth largest manufacturing area, contains indus-
trial plants representing 98% of all Standard Industrial Code (SIC) categories. Principal
industries include electroplating, foundries, inorganic chemicals, Pharmaceuticals, paints,
petroleum refining, and machinery manufacture. In the SIC categories considered by this
study, there are 442 plants, of which most are small (Table C-2).
Table C-3 summarizes the types and quantities of wastes estimated from plants in vari-
ous industry categories in the SMSA. These data were derived from the national waste data
summarized in Tables III-l and III-2, using as the scaling factor the number of employees
in Philadelphia plants proportionate to the number in the industry nationally. While the
data are not highly accurate due to uncertainties in local employment and the inherent
variability of waste generation rates expressed on a per employee basis, it is clear that the
largest number of plants in each industry category (with the exception of petroleum refin-
ing) employ under 100 people. Out of a total of 442 plants listed, only 28 or 6% employ
89
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TABLE C-la
GENERATION AND POTENTIAL USES OF SELECTED CHEMICAL WASTES
WASTES GENERATED
POTENTIAL USES
SIC Product Manufactured/Process
2819 PCI3
2819 Activated Carbon
2812 NSjCOjj/Trona or Solvay
2813 Acetylene/Carbide
2833 Penicillin
2819 Ca(OH)2
2821 LOPE/Hi-Praisure
2865 Styrene
2821 Polymer resins
2833 Antibiotics
2833 Penicillin
2833 Alkaloids
3291 Crucibles and grinding wheels
Waste Properties
HCI + P2°s ln aqueous scrubbing liquor
H3P04
CaC03,Mg(OH)2 sludge
Ca(OH)2 sludge
NaOH waste broths
Lime and limestone solids
Oils and Waxes
Styrene, ethyl benzene tars
Resins
Filter cell mycellium
Filter cell mycellium
Wet plant material
SIC
Pickling and rustprooflng metals
Fertilizer manufacturing
Electric plating
Alkaline wet scrubbing
Filler for rubber
Alkaline wet scrubbing
Alkaline scrubbing
Acid neutralization
Alkaline scrubbing
Acid neutralization
Candles
Capacitor Insulation
Secondary plastics
Mold Binder
Mold core lubricant
Mold cores
Soil builder
Soil builder
Composting
Grey iron foundries
Source: Arthur D. Little, Inc.
90
-------
TABLE C-1b
GENERATION AND POTENTIAL USES OF INORGANIC CHEMICAL WASTES
WASTES GENERATED
POTENTIAL USES
SIC Product Manufactured/Process
2815 Phenol & Sulfonate
2816 ZnO/Amerlcan
2812 Na2CO3/Solvay
2818 Formic acid/Formate
2818 Glycerlne/Allyl chloride
2819 Boric Acid
Chromic Acid
Hydrochloric Add
Sodium Sulflte
petrochemical Polymers
2813 Acetylene/Sachaser
2819
2819
286
286
2812
2813
2819
2816
2819
2819
NH4CI/Solvay
NH4CI/Solvay
KCI )
K >
KNO3 |
Anellne
Chloral
Sodium bicarbonate
Nitric oxide
Chromic oxide
Iron Oxide pigments
Mercuric sulflde
NaF
2819 Beryllium hydroxide
2819 Nickel sulfate
2819 P2O5
2819 PCI 3
2819 KMnO4
2819 ZnSO4
2869 Eplcnlorohydrtn
2821 Methyl methacrylate
2819 Ferrous Sulfate
2B6S Phenol/cumene
2816 TIOj
3321 Cast Iron pipes
Source: Arthur D. Little, Inc.
Waste Properties
Na2SO3, Na2SO4 sludge
FB2O3, FeO, MgO sludge
CaClj
Na2SC<4 sludge
CaCi2,NaCl Salts
Na2SO4 sludge
Na2SO4 sludge
Na2SO4 sludge
Na2SO4 sludge
Attapulga clay and hydra ted lime
Carbon black filter cake
CaCO3 filter cake
Glauber's salt,
(viewed as a by-product)
NaCI cake
Fe3O4 and tar
CaSO4 sludge
Na2CO3, NaHCO3 slurry
Caustic, sodium nitrite solution
Ca(OH)3
Fe(OH)3; Fe2O3 solids
Hgo
CaF2
Alum slurry
NI(OHj). filter acid
Ca3(PO4)2 sediment
AsCI3 residues
MnO solid
MnOj solid
CaCI2 solid
Na2SO4 filter cake
Copperas
Na2C03
FeSO4
Slag
91
Paper manufacture
Ferrous smelting
Road salt
Paper Industry
Textile Industry
Road salt
Paper Industry
Textile Industry
Filler for rubber, paper, textiles
Lead pencils
Carbon dispersions
Wet scrubbing
Rubber filler
Textile Industry
Textile Industry
Road salt
Steel mills
Cement
Paint filler
Add neutralization
Tanning
Timber mold Inhibitor
Dyeing
Bleaching
Metal recovery
Ferrous smelting
Metal recovery
Ceramics
Flux
Glass
Paper
Textiles
Water treatment
Metal recovery
Ceramics
Polishing
Mordant
Cements
intermediate for organic
arsenecals
Ferromanganese production
Metal recovery
As above
Road salt
Paper
Textiles
inks
Pigments
Fertilizer
Water Treatment
PbCOs manufacture
Flux
Glass manufacture
Manufacture of Iron blue
Water Treatment
Manufacture of Fe2O3 Pigments
(dry process)
Cement block
Cinder block
-------
TABLE C-lc
GENERATION AND POTENTIAL USE OF ORGANIC CHEMICAL WASTES
WASTES GENERATED
POTENTIAL USES
SIC
2869
2865
2865
2865
2821
2865
2865
2879
2869
2843
2821
2869
2869
2869
2833
2869
2822
2869
2833
2833
2865
2869
2869
2821
2869
Product Manufactured/Process
Ethylene Glycol
Phenol
Phenol/Cumene
Iso and Tere-phthallc acids
Acrylic acid
Phthalic anhydride/xylene
Maleic anhydride
Carbaryl
Aromatic amines
Surface active agents
SANpolymers
Ethylene dichlorWe (EDC)
Hexechlorocydobutadiene
Perchloroethylene (Perc)
Pharmaceuticals
Sulfonlc Acids
Urethane
Tetraethylorthosllicate
Penicillin
Alkaloids
Nitrobenzene
Ethyl chloride
Epichlorohydrin
Methyl methacrylate
Dicumyl peroxide
Waste Properties
Glycols and water
Phenol, cresol, off-spec in water
Acetophenone. phenol, cumyl phenol
evaporation residue
Phthalic acid, toluic acid, benzole acid,
trimellltic acid, aldehydes, acetic acid,
Bi, Mn, Co-still bottoms
Aqueous acrylic acid and hydroquinone
Pitralic anhydrlde/maleic anhydride tar
Maleic anhydride tars
Naphthol residues
Long chain amines (solid)
C-8-C-ISfatty alkyl acids, nitrites.
amines
Styrene and acrylonitrlle
EDC, tri- end tetra-chloroethanes;
sludge
Chlorinated toluenes, pentanes,
benzenes
Perc., CCI4 chlorined hydrocarbons-
liquid still bottoms
Various solvent wastes-chlorobenzene,
toluene, methanol, methylene. dichlo-
ride, tetrachloroethane
Emulsified oils and sulfones
Mixed polyols and phosphate esters
Tetraethyl orthosillcate, iodine, alcohol,
Genusolu D
Butyl acetate and butyl alcohol
Chlorinated solvents
Benzene, nitrobenzene stripping
Ethyl chloride, chloroethenes.
trichloroethylene, etc. — liquid still
bottoms
Hydroquinone; polymer heavy ends
Organic peroxides
Solvent reclamation
Wood preservative for boat or
fence post manufacture
Wood preservative
Film forming in paint manufacture
Acrylic emulsion paints
Polymeric binder for shingles
wood chips, grinding wheels,
retractory bricks, etc.
Polymeric binder
Dye intermediate
Ore Benefication
Ore Benefication
Film forming
Molding Compounds
Dry cleaning
Degreasing of metal parts
Degreasing solvents
Dry cleaning solvents
Degreasing solvents
Solvent recovery
Degreasing
Cleaning
Paints
Leather lubricant and treatment
Molding compound
Filler for wood, wallboard
Stone or concrete preservation
Mortar
Paints
Solvent reclamation (done
routinely)
Degreasing
Reclamation
Paint Formulation
Degreasing
Peint remover solvents
Degreasing
Paper board binder
Point industry-film formers
Source: Arthur D. Little, Inc.
92
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Allentown-Bethlehem-Easton
Paterson-Clif ton-Passa ic
Jersey City
renton
k<
PHILADELPHIASMSA
Philadelphia e
Chester
Pennsylvania
Scale (Miles)
0 10 20 30
Maryland
Source: U.S. Department of Commerce, Bureau of the Census.
FIGURE C-1 PHILADELPHIA SMSA AND NEIGHBORING INDUSTRIAL AREAS
93
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TABLE C-2
RANGE OF PLANT EMPLOYMENT IN PENNSYLVANIA COUNTIES (BUCKS, CHESTER,
DELAWARE. MONTGOMERY, & PHILADELPHIA) OF THE PHILADELPHA SMSA*
Number of Plants with Employees
SIC No. Industry <20 20-99 100-499 >500
1 1
1
3 8
3 1
1
1
1
4
15 2
2 2
1
1
6 1
1 6
1
11 2
9 4
Totals 220 133 62 28
3691
3471
3312
332
3313
3331
333
334
281
2865
2869
2831 & 2833
2879
285
2911
3111
355
357
Storage Batteries
Electroplating
Iron & Steelmaking
Iron & Steel Foundries
Primary Ferroalloys
Primary Copper
Primary Non-Ferrous
Secondary Non-Ferrous
Inorganic Chemicals
Organic Intermediates & Dyes
Industrial Organics, NEC
Pharmaceutical
Pesticides
Paints and Allied Products
Petroleum Refining
Leather Tanning
Special Machinery
Office, Computing & Accounting Machines
1-2
37
5
3
1
10
30
4
9
16
7
17
2
61
16
1
15
4
8
1
24
2
3
1
8
13
4
2
36
11
*The New Jersey counties (Burlington, Camden, and Gloucester) have less than 20% of the SMSA's indus-
trial capacity, and were thus eliminated from discussion.
Source: U.S. Bureau of the Census, County Business Patterns, 1973; Industrial Directory of the Common-
wealth of Pennsylvania, 1972, Harrisburg; Pa.: Department of Commerce & Industry, Common-
wealth of Pennsylvania.
94
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TABLE C-3
SUMMARY OF WASTE GENERATION BY PLANT AND INDUSTRY IN THE PHILADELPHIA SMSA
SIC No. and Industry
3691 —Storage Batteries
285-Paints and Allied
Products
2865— Cyclic Crudes
and Intermediates
2869-Other Organics
2879-Pestlcides
2831 and 2833-
Pharmaceuticals
Estimated Total
Wastes. Phlla.
SMSA (MT/yr.)
4,000
4,800
1,650
70,700
< 570
1,030
Potentially Recyclable Wastes
Quantity
Description (MT/yr.)
None
Spoiled batches 2,100
and waste
solvents
Still bottoms, tars, 1 ,650
filter solids
Still bottoms, tars, 70,700
filter solids
Unknown Negligible
Solvents, carbon 2,700
filter acid, tars, and
still bottoms
Recyclable-Wastes Available Per Plant
No. of
Employees
<20
20-99
100-499
>500
<20
20-99
100-499
>500
<20
20-99
100-499
>500
<20
20-99
100-499
>500
No. of
!••_•»«•
riants
17
13
6
1
4
2
-
-
9
3
2
2
16
1
1
—
Estimated
Quan/Plant
(MT/yr.)
6
40
140
670
125
570
—
-
140
1,200
4,500
28,000
60
280
1,500
—
332—Iron and Steel
Foundaries
281—1 norganic Chemicals 109,000
3312-lron and Steel
Making
3471-Electroplating
2911 -Petroleum
Refining
3111 -Leather Tanning
355 and 357-Special
Machinery
100,600 None (wastes are
slags, sludges, dusts.
end sand)
None (wastes ere
primarily mixed
metal sludges)
3,490,000 Pickle liquor 163,000
2,900 Degreaser sludges 60
(50% Cl & FI3 &
50% polishing
compound)
58,000 FCC catalyst, fines, 6,600
coke fines, tank
bottoms
2,900 Trimmings and 170
shavings
8,600 Metals, oil. solvents, 1,800
acids, and alkalis
<20
20- 99
100499
>500
<20
20- 99
100-499
<20
20-99
100499
>500
<20
20-99
100499
>500
5
4
3
8
37
15
1
_
4
1
6
5
77
47
20
6
170
1,300
6,100
17,000
0.7
2
4
40
400
1.000
35
1
7
40
95
Source: Arthur D. Little, Inc., analysis of EPA industry studies.
8-18
95
-------
over 500 people. Well over 50% of the wastes, however, are estimated to come From the 28
largest plants. This is important to a materials exchange operator in analyzing the econo-
mics of his business. There is a lower limit to the quantity of waste which can be transferred
economically. In the Philadelphia area, there are only few opportunities to transfer large
wastes, and a materials exchange would face economic problems in dealing with large num-
bers of wastes in small volumes.
Despite the uncertainties in the data in Table C-3, they are the best available and pro-
vide a sufficient base for estimating the magnitude of the market for transfer services and
the magnitude of the impact arising from the utilization of such services.
Identifying and Assessing Potential Opportunities
In order to test the potential transfer opportunities developed from publications and
general experience, a number of managers of Philadelphia-area plants were interviewed. The
first group was interviewed by telephone, as any transfer agent would do, to gather general
information in a cost-effective way. The second group was visited personally, as a materials
exchange operator would do, to describe the transfer concept in detail, gather specific
information, establish rapport, and explore various transfer possibilities. Although most
interviews did not lead to identification of immediate possibilities, the results of all are
summarized below for the information of readers and as examples of data and assessments
needed by transfer agents. These interviews provided data needed for this study to identify
those wastes and industries best suited for transfer; interviews also provided insights needed
to develop operational techniques for information clearinghouses and, especially, mate-
rials exchanges.
Telephone Survey of 35 Plants. Managers in representative industries were asked
about (1) the accuracy of waste information for their plants as suggested by published
literature, (2) their assessment of transfer possibilities listed in Table C-l, and (3) their
reactions to the concept of using transfer agents.
Names and addresses were taken from the 1972 Industrial Directory of the Common-
wealth of Pennsylvania, (20th ed.), but proved in some cases to be incorrect. In a few cases,
the products manufactured differed from those typical of the SIC code assigned to the
plant. In many cases, even though the product was identified correctly, their wastes differed
drastically from those described in the literature. Thus,-published data was only of limited
value beyond getting started.
Results are summarized in Table C-4. The column "Wastes for Listing" shows the
type of data which would be provided to an information clearinghouse. Experience, if any,
96
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with the use of secondary materials is recorded under "Wastes Used or Tried". The columns
"Wastes Sold" lists, for the most part, materials which are not established by-products and
which were at one time considered as trash wastes for disposal, but which are now routinely
sold as scrap wastes. The column "Wastes Recycled" documents reuse of processing resid-
uals within the plant. The column "Needed Materials" shows raw materials already used
by the plant, and for which the column manager would consider a secondary materials
source if available.
The information obtained through direct contacts with various plant managers differs
substantially from that derived from the nationally-averaged data. The petroleum refining
industry, for example, generates a spent caustic which was not included in the national
data. This waste is occasionally transferred to paper mills. If a formal transfer service were
available, higher percentages of this scrap waste would very probably find more steady
markets.
The paint industry was assessed to be both a generator and a potential user of waste
solvents. Many paint companies contacted in the Philadelphia area, however, produce only
water-based paints.
Field Visits to 21 Plants. One purpose of these visits was to play, in part, the role of
waste transfer agents, and to obtain first-hand information that would help to crystalize
the scope of a possible waste clearinghouse. Results are summarized in Table C-S. As before
the column "Wastes Used or Tried" lists those materials which have already been investi-
gated by the manufacturer for inclusion into production; these materials may be used
presently, or have been tried and discarded because of reasons noted in the table. "Wastes
Sold" shows the by-products or scrap wastes presently sold to reprocessors, reclaimers,
or other industries.
As might be expected, more detailed information was obtained in the plant visits than
in the telephone interviews. The transfer concept was new to most plant managers, and
many indicated that they had not really appreciated the value of the activity until dis-
cussed with them face-to-face. Although most managers were enthusiastic about the waste
transfer concept, they reported many more offers to provide or sell wastes than requests
to receive or buy them; this pattern is consistant with that seen by clearinghouses already
in operation. But it should also be noted that the list of sold, recycled, and wanted mate-
rials is large; this suggests that more waste materials would be used if acceptable sources were
known to manufacturers. It appears that many managers are alert to recycling opportunities
and willing to try secondary materials, but are currently limited by lack of information.
97
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TABLE C-4
SUMMARY INFORMATION FROM TELEPHONE INTERVIEWS
SIC
No. Product or Activity
1 28 Specially chemicals
2 2865 Phenol
WMMI for Lifting
None
Wastes Used or Tried
None
None
3 3362 Brats and bronze
4 3312 Iron and iteel. secondary
5 2822 Urethanes
6 2865 Aniline and nitrobenzene
7 2818 Lithium chemicals
8 3312 Iron and neel
9 2822 Urethanei
1. Dirty tend (12T/mo.I. goes to landfill
None
None
1 Undefined mud cake Irom filters
12 drum/wk)
1 Electric furnace flue dusts, mixed iron
oxides (60 tons/day), it is a fine powder
which is now stored
None
None
1. Reclaimed rubber
2 Foamed materials
3. Fillers
1. 100% metal scrap utilized
10. 2843 Quaternary chlorides
11 2843 Surfactants
12 2911 Petroleum refining
13 2816 Zinc Oxide
1 Spent granular carbon (18.000 Ib/yrl. to landMI
2 Xylene. caustic. H2SO4. NaCI. fatty acids and
Blconots strCBift
3 Methanol. free amines. TEA. DEA. fatty acids
0nd 0lconolt itiwfi ,
4. C, |-C,4 fatty aod residues (60 Ib/day)
1 Spam caustic. 8-10% NaOH and NajS
(8000bbl/mo.)
2 White water. 2tt oil emulsion (4000 bbl/mo.)
3 Spent day. Fuller's earth (15.000 yd3/yr).
contains 30-4OK oil
4 Catalyst fines 13 tons/day): not rare metals.
goes to landfill
None
1 Various sources of zinc
14 2911 Solvents and petrochemicals
1 Sp»nt caustic
2 Spent acids
3 Oily sludges. dirt and oil accumulated in storage
tanks
4 Biological sludges from water treatment
98
-------
TABLE C-4 (Continued)
Wastes Sold
1 Acetone
2 Or-Methylstyrene
Wastes Recycled
None
1. High molecular weight
organic* mixtures used
at fuel
1. Metal scrap
Material! Needed
1. Cumene. pure
1. BOFdutt
2. Crushed inorganics
3. Foamed materials
Comments
Direct combination reactions. No wastei or bv-oroduci.
Considen reuse whenever possible.
Recycles whenever epproprate.
Recycling an economic necessity.
Compounded products produce no waste. Can use
fillers for urethane.
Proprietary information not conveyed.
Recycles whenever appropriate No appreciable
waste generated.
1 Unspecified by-products
1. Xylene
2. Fractionated raw materials
Pure materials. e.g.. isocyanates purchased from maior
producers. On rare occasions, company has a spoiled
batch of urethane.
ver appropriate. Do use some scrap
Recycles whi
materBls but information Is proprietary.
Has considered methanol recycling and use as fuel
I Spent caustic on oeouion
to paper mill
White water is a stable emulsion and very difficult
to break. Anxious to be rid of generated wastes for
which they pay cost of disposal
1 Zinc containing wastes to primary
smelters when abundant
1. Oily sludges sold to reclaimers
2. Spent caustic extracted to remove
cresylic acids
1. Sources of zinc
1 Spent acids reprocessed
outside plant and returned
Recycles whenever appropriate.
Recycles whenever appropriate. Oil-spec gasoline
C0n tas tv^tCTinGo.
99
-------
TABLE C-4 (Continued)
SIC
No. Product or Activity
15 2834 PharrrBceuticali
16 3312 Iron and ttml (fully integrated
plant)
WacMi for Lifting
1 Mold, now dumped
2. Carbon, named to remove solvent
3 Solvent!
4. Mi xed organic*, hauled away
1. NH j liquor, very dilute (GO gal/mm.)
2. Spam pickling liquor (9-10% FeClj. 1% HCI).
now neutralized with lima and dumped
3. BOF dun. von oxide with zinc content
(50 tons/day), now dumped
4. KISH. magnetic iron oxide containing carbon.
flaky and greasy: now dumped
5. Oil ikimmngi. hydraulic lluidi (6000 gsl/mo.l:
burned at fuel
6. Sludgn from water treatment, high in FeO and oil
7. Crushed brick (10T/mo.l. to landfill
8. Grease containing dirt (2 drums/mo.); to landfill
WattaiUHd or Triad
SOI Wilt!
1. Limestone for flux, not usable
17 3321 Iron and steel foundry
18 3297 Cement
19 2851 Paint
1 Slag (16-20 tons/week)
2. Residue from dean cutting of steal plate -
magnetized (50T/yr)
1.
1. Cleaning solvents — mostly water
20. 3271 Cinder block
21. 2621 Bag paper and industrial tissue
22 3272 Concrete limels
23. 2621 Paper
Foundry slag (whe
1. Double lime Kraft
2 Cut stock waste
24 2851 Latex paints
25 2874 Feruli/er
26 2851 Emulsion paims
27 2851 Paint
28. 2621 Paper
Dirty water
1 Incinerator sludge from Chicago -
used in nitrogen fertilizer manufacture
2. 72% waste sulf uric acid
1 Acrylic and vinyl emulsions
I. Dirty water with pigments, latexes, and
mercurials
2 Xylene and mineral spirits (8O-100 drums/yrl
1. Clanfier sludge (2-3T/day). 15% solids (liber and
clay filler), varying color
100
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TABLE C-4 (Continued)
Wanes Sold
Wastes Recycled
Coinivwnts
1. Methylene chloride
2. Isobutanol
1 Solvent!
2. Fuel>
Mixed organics are variable composition. Have considered
reclaiming it. Some solvent burned as fuel
1 Tar and low sulfur coke by-product
(250.000 gal/mo.) - sold to a refiner
for use as a roofing and road sealer
1 Tar. low in sulfur (250 K gal/mo.).
sold to refiner
2 BTX mixture, benzene, toluene.
xytene. sold to distiller
1. Lime dust collected in
mil
1. Lime
Mill is reluctant to use scrap materals Small amounts of
impurities have large effects on iron.
1. Industrial solvents (mineral
spirits and alcohol) to a
1 Extruders and tillers
2. Latex
3. Solvents
4. Pigments
5 Linseed oil
No use found for the waste in 100 years, too expensive to n
the phosphate for fertilizer.
Use a hydrapulper (no chemicals) in manufacture
1. Ctarlfier sludge - used in
bleaching operation for
Kraft paper
2. Bark - burned m boiler
Consider use of scrap materials too risky.
1. Pigments
2 Alkyd emulsions
No interest in scrap materials; concerned about color - must
be pure white.
Pays $20/drum to have solvents hauled away.
101
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TABLE C-6
SUMMARY INFORMATION FROM PLANT VISITS
SIC
No. Product or Activity
1 2879 Agricultural chemical*
2 3321 Metal rolling
3 2834 Pharmaceuticals
Waitet for Lifting
1 15-20% HCI. in limited quantity, being
investigated lor pickling
2. 90% acetone with some water, traces ol
CHjO and HCI. difficult because ol CH,O.
solvent reclaimers will not accept it.
burned off
3. Treatment plant sludge containing small %
of Cr. Zn. Ni, etc, es hydroxide precipitate.
burned or landfill, exploring recovery
1 Spent ptcklmg liquor. 10% HCI with 3% iron
chloride (6000 gal/wk)
2. Caustic rinses, Irom cleaning operations
3. Water soluble oils, emulsif table (55 gal/wkl
4 Electroplating waste, solid cyanide crystals
plus sails. NejCOj 11500 Ib/day)
1 Spent granular carbon, wet with water and
solvent (500 Ib/wkl. has been used to
decolorize solutions
2 Mold, wet (tons/day).decomposes rapidly,
being looked at lor feed, goes to landfill
3. DEO waste containing HCI, dibenzybmine,
methanol 11000gal/wk). presently neutralized
with caustic and hauled away
4. Spent yeast, wet; goes to landfill 4 times/yr
Mattel Used or Tried
1 Ethylene didiloride, reprocessed.
presented impurity problem
2 Heavy acids
4 3069 Rubber
1. Reclaimed rubber
5 2911 Petroleum refining
1 White water (oil. caustic, water)
2 API sludge, trucked out to land disposal
1 Spent H,S04
4 Wash waters cqnuming caustic, sulfidei. phenols.
solvents, oils, etc.
6. 3079 Cellophane
1. Cellophane, oil-spec or waste, 8000 Blu/lb
(en 1500 Ib/day)
1. Fuel oils
7 28 Diversilied chemicals, metals,
and consumer products
1 Greases from overruns, may be mixed types
8 2821 Monomers
1 None
102
-------
TABLE 06 (Continued)
Wattes Sold
WsMttBs Rscyclofl
1. Xylene. 90% recovered
HCI. H,SO4, HNOj
concentrated and pure (no
trace organiol
Comments
Expect to be reprocessing acids in luture and reusing plant
water. Raw materials are sensitive to impurities since l*.ey
will affect chemical reactions.
1 30% ferrous chloride, reclaimed from
pickling liquor, cannot sell all
2 Spent oils 5% (30 K gal/yr). given or
sold to reclaimer
1. HCI. reclaimed from
pickling liquor
I. Caustic, free of iron finei
2. Oils, lubricants, greases
3. NaCN
4. H,S04
Waste oils have no fuel value at null. Material! not sensitive
to impurities but must be non-tome and not reactive wnh
1. Mon-fecoveraUe solvents (2000 gal/yr)
1. Solvents: some burned
2. Methylene chloride
1. Pure solvents
Materials must be vary pure to meet FDA requirements
Everything is analyzed. However, traces of unknowns .nay
not be found, which would present a potential hazard.
1. Carbon black — occasional contaminated
lot
1. Carbon black, collected
from dust collectors
1. Carbon black
2. Fuels
1. Concentrated H,SO4
2. Caustic
Material requirements limited. Energy requirement! to
generate steam are high. Fuel value material! would be
iniiportBnt.
Oils, greases, hydrocarbons of reasonably known com-
positions from external or in-refmery sources can be re-
worked if necessary, and If available in large enough
quantity to Mend into refinery feedstocks.
1. NejSO4. recovered by vacuum
crystalization
1. Spent cutting oil! from machine operations
2. Spent HCI
3. Metal scrap
1. HjSO4 1. Fuels lunsulfured)
2. Caustic 2. Caustic (21-50%)
3 Glycerol/glycol plastiazers 3. H,SO4 (>21%»
4. Solvents
5. Carbon sorbants
1. Cutting oils
2. Amalgam
1. Solvents
1. Fresh cutting oils
1. Caustic
Detailed process information is proprietary Little or no
waste viscose generated. Emphasis is on reclaiming anri re-
cycling most materals in plant. HjS is produced and » passed
through the slack. Raw materals need to be pure unce im-
purities will show up in cellophane. Do burn waste oils.
Most operations in Philadelphia area are limited to machinery
and fabrication operations. Chemical operation! are "dean"
or produce only very limned quantities of wane.
Aqueoui waste streams are inconsistent. May contain a
variety of acrylic acids and monomer!, salts, solvent, by-
product, catalyst and lacrymator Total concentration » lest
than 5%. which makes recovery end separation tmrva'iical.
No requirements for waste monomer or material-.
103
-------
TABLE C-S(Continuad)
SIC
No. Iroouct Of Activity
9 2843 Speoally chemcals
Wastes for Listing
1. Dirty wet oild & obi/day). variable
cornpoiition. hauled away
2. Water treatment sludge. 15% T5.
(5000 gal/mo.1: hauled away
3. Sullonated watte oils with iron I inet
Wastes Used or TrM
1 Re-refined oili
2. Reclaimed mineral oili
10 2843 Processing oils
1. Lime/CaSO4 sludge. 30% water
(15-20 tont/mo ). to landfill
11. 3674 Electronic cermatf
1. Mixed tolvems (50-100 gal/mo.)
12. 3312 Iron and Heel
1. Electric lurnece dint. conteimFe.Zn.
trace dementi; being imenigaied ai a
sari additive
2. BOF dint, a fine von oxide containing
CaO. MgO. ZnO. AI. P. S.Si (SO torn/day).
Qiuvot DA fBUMo btwsucB o* Zti content
which affecti Mast furnace refractorin
1. 80-00% C from rubber plant flue
dun; palletized for coke, contained
too much wlfur
2. Limestone. 80-90% CaCOj.MgCO,.
too fine for ease of ute
3. Chlorinated hydrocarbons, burned ei
fuel and the scrubbed HCI n used lor
pickling
13 3471 Electroplating and anodizing
14 3479 Lacquers
1 15% H2S<>4 anoduing bath with aluminum
2. Soap cleaners with oils, waxes and polishing
cofiMjuunds
3. NaOH etcheH>H12. with sodium gluoonate
4. Contaminated aluminum hydroxide precipitates
1. Polymeric sludge
15 3339 Copper smelting
1. Copper bearing scrap is primary raw
16. 2851 Paints
1. Of f-spec latex
2. Surplus cans
17. 2843 Soaps and surface treatment
compounds
1 Spent lye
2 Dilute sutluric add
1. Fats and tallows — purchned from
a broker
2. Various surplus chemicals
104
-------
TABLE C-6 (Continued)
Winn Sold
1 Wane oils (15.000 gal/yrl. to
oil reclaimer
WMtn Recycled
1. 91* H,SO4 for water
treatment
2 Mineral oili and other
type* of Oils
Would have little to offer an exchange, but could UK oil and
«•» materBls if not contaminated or toxic.
1. Collected precioui metal tcrap
(100 Ib/mo.l. (Judge, floor tcraping.
etc.. to refiner
1. HCI pickling liquor, told to broker
2. Blest furnace dag. used tor paving
aggregate or concrete blocks
1. Precious metal pastes
1. Iron and iteel scrap
2. Blast furnace slag reined
as flux
1. 98%H3SO«
2. Oils, waxes, fats. etc.
3. Solvents
Raw materals need not be pure and in some cases can be
mxtures. Oils and fats can be water nonsoluble as long as they
can be converted to emutsifiable forms.
Materials extremely sensitive to impurities. Cannot tol< rate
impurities since they mil affect electrical characterist a.
1. Sources of iron
2. Carbon
3. Lime
4. Fuels
5. Chlorinated hydro
to generate HCI
& HCI for pickling
1. Chrome plating tank residue-
incidental, to a competitor
2. Oil Tank Bottoms - to reclaimer
1. Nickel sulfonate
1. Solvent blend (mostly
MEK) with lacquers and
enamels - 1 drum/day -
to reclaimer
1 Blast furnace slag - marketed for
sand blasting
1. Fine slag from Mack copper
refiner and filter bag dust is
recycled to the blast furnace
1. Fatty acids
2. 40% caustic
3. Mineral oils
4. Paraffin waxes
5. IPA
& Glycols
7. Ethanolamnes
Small company that deals in of f-ipec and slightly contaminated
chemicals as a sideline.
Sells to the textile industry, which might me if a Imah.ng agent
affected fiber properties adversely.
105
-------
TABLE C-6 (ContlnuMl)
SIC
No. Product or Activity Wastes tor Listing Wastes Ihed or Tried
18. 28 Carbon Mack dispersions, surfactants 1. Dilute ammonn 1. Surplus nocfc for dealers
and polymers (sodium polyaorylaie) 2. 20% methanol
19. 2295 Rubber and plastic coated doth 1. Resin bottoms (coating immures 1. Reclaimed rubber
left m cans)
2. Scrap - burned In boiler before
converting to oil
20 2843 Fabric finishing agents 1. Surfacunt blends which accidentally 1. Surplus stock for dealers
freeze on shipmrm
2. Oft-spee batches
21 2834 Pharmaceuticals -- —
106
-------
TABLE C-5 (Continued)
Wastes Sold WulM Recycsed Ms:teriali> Needed Coiiiiiwiili
1 Peroxide catalym Continuity of fupply » very important. Surptui or waste
2. Caustic for cleaning tanki must be available in the quantity needed for 12 months
— Would not risk the use of scrap chameals. which might
ruin • customer's cloth.
1 Surplus stock - to broken
1. Solvents 1. Sodium hypochlorite Cannot ever accept solvent wastes for cycling through
2. Sodium hydroxide their recovery facility, because of strict FDA requirements
Both lor voter treatment
107
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APPENDIX D
ECONOMICS OF TRANSFERRING WASTE MATERIALS
This Appendix presents details of the economic analysis of transferring scrap wastes.
The first section discusses the basic analysis of transfer between generator and user directly,
without the assistance of a transfer agent. The second section applies this basic analysis
to identify the business opportunities and limits of a materials exchange, which derives its
income from the transfers it arranges as middleman between generator and user.
ECONOMIC FEASIBILITY OF A TRANSFER
Costs of the Transfer and No-Transfer Options
The economic effect of a transfer can be determined by comparing the costs incurred
by generator and user with those which would be incurred if no transfer takes place. Sup-
pose that generator's W pounds of scrap waste would be acceptable to user in place of R
pounds of raw material purchased elsewhere. Under the first or no-transfer option, generator
arranges for disposal of its waste at a cost of Qj cents per pound, while user independently
purchases its raw material from a supplier at a cost of CRM cents per pound; the total cost
of this no-transfer option is thus:
C^WCo + RCRMW) (1)
Under the second option, if the transfer can be made, the costs are quite different.
Generator is no longer liable for disposal costs and user need not buy raw material. How-
ever, two other costs become necessary:
• Transportation costs, to move the waste from generator's plant to user's
plant; if these plants are M miles apart and the unit transport cost is Or cents
per Ib-mile, transport cost is WCTM ($).
• Transfer costs including administrative costs for arranging the transfer, handl-
ing costs (if any), and costs of processing the waste to meet user's require-
ments. Transfer cost may be zero, if no handling (other than direct transport
between plants) or processing are required. The magnitude of the administra-
tive costs attributable to the transfer depend on the nature of the waste mate-
rial, how the transfer is arranged, and the total number of transfers over which
these costs can be spread. The net transfer cost, CA, is expressed in cents per
pound of waste transferred.
Preceding page blank
109
-------
TABLE D-1
DEFINITIONS AND UNITS FOR ECONOMIC ANALYSIS
C2
CA
CD
CRM
CT
M
N
W
X
y
Y
Definition
Net economic benefit or gain from a transfer
Net benefit or gain per unit of scrap waste
Cost of no-transfer option, when generator pays to dis-
pose of the scrap waste and potential user pays to buy
raw material from other source
Cost of transfer option, when generator need not pay
disposal cost and user need not buy raw material
Net cost of administering the transfer, including such
costs as communications, advertising, managerial time,
handling charges, and processing the waste to meet
requirements of the user.
Cost of disposal of the waste
Cost of the raw material for which the scrap waste
might substitute
Cost of the scrap waste as raw material for the user's
process
Cost of transporting the scrap waste from generator
to user
Fraction of the disposal cost paid by generator if
the scrap waste is transferred
Fraction of the raw material cost paid by user if he
accepts the scrap waste as a substitute
Distance between generator and user
Number of transfers completed annually
Scrap waste available for transfer
Net annual income of materials exchange from all
transfers
Unit income or revenue earned by arranging a transfer
Income earned by arranging a transfer
Unit of Measure
cents (i)
cents per pound
cents W
cents (4)
cents per pound (4/lb)
cents per pound W\b)
cents per pound W/lb)
cents per pound
cents per pound per mile (4/lb/mi)
cents per pound (rf/lb)
cents per pound (4/lb)
miles (mi.)
number
pounds
dollars
cents per pound
dollars ($)
110
-------
The total cost of the transfer option is thus:
C2 = WCTM + WCA W) (2)
The Economic Effect Model
The transfer will produce a net economic benefit if costs associated with the trans-
fer option, Equation (2), are less than costs associated with the no-transfer option, Equa-
tion (1). Conversely, the transfer will lead to a net economic loss if Cj is smaller than €3.
The net benefit (B) of a transfer can be expressed mathematically as
or
B = WCD + RCRM - WCTM - WCA. (i) (3)
The benefit per unit of scrap waste is
b = B/W = Cn + — CRM - CTM - C. W\b)
W " ' M
The term (R/W CRM ) is the unit value of the waste as raw material, taking into account the
fact that the waste may have more or less (almost always less) of the important raw material
than that substance purchased from a regular supplier. The ratio of amounts (R/W) is given
here simply to demonstrate that scrap wastes normally will not replace raw materials on a
pound-for-pound basis, and that the amount of waste which is "equivalent" to one pound
of raw material influences the economics of the transfer. Having made that point, let us
replace the term (R/W CRM ), the value of waste as raw material, with the single term CR .
The benefit equation then becomes
b = CD + CR - CTM -CA. (4)
This simply shows that if the transfer is to show a net benefit, the generator's cost of waste
disposal (Co) plus the user's cost of an equivalent amount of raw material (CR) must exceed
the sum of the costs of transportation (OfM) and of administering the transfer
Ill
-------
Implications of the Model
It is difficult to evaluate the economics of specific transfer opportunities without first
knowing the transfer cost (CA ); this can be known only by analyzing the economics of the
materials exchange itself, including the number of transfers which it arranges during the
year, as shown below. But the result of that analysis shows that a reasonable transfer cost
is one-half cent per pound. The cost of transporting the waste is about 0.005 cents per
pound-mile.* Therefore, the net benefit is (from Equation (4))
b = CD + CR - (0.005) M - 0.5.
Whether a specific transfer shows a net positive benefit depends on the waste disposal
cost foregone (Co), the cost of raw materials replaced (CR when expressed in terms of
waste quantity), and the distance the waste must be shipped. If generator and user are SO
miles apart.then
b = CD + CR - (0.005) (50) - 0.50
= CD + CR - 0.25 - 0.50
= CD + CR - 0.75
and the benefit will be positive if CD + CR is more than 0.75 cents per pound.
Alternatively, if CD + CR is 2 cents per pound, then
b = 2.0 - 0.005M - 0.50
= 1.5-0.005M
and the benefit will be positive if the distance (M) between plants is less than 300 miles.
The foregoing analysis deals only with the overall economics of the transfer, i.e., how
much the net cost of the transfer exceeds or is less than the comparable costs of the no-
transfer option. The analysis says nothing about how this benefit is allocated among the
three parties-at-interest (namely, the generator, the user, and the materials exchange). This
allocation is important since each of these economic actors is more concerned about its
own gain or loss than about the overall benefit.
The economics of the materials exchange, discussed below, depend on a number of
factors, mainly how many transfers it can arrange in a year. However, generator and user
This is an average cost, based on tank-truck loads. Specific cost quotes can be obtained from local con-
tract haulers.
112
-------
react to individual transfer opportunities, and this economic analysis of a single transfer can
help to identify when a transfer will appear economically attractive to both.
By participating in a transfer of scrap waste, both generator and user incur risks which
would not exist if each acted separately to dispose of waste and purchase raw materials.
Generator incurs the risk that his waste material, when used by someone else as a raw mate-
rial, will cause (or be thought to have caused) a problem for which generator may be held
liable. User runs the risk that the waste will contain some impurity which, when used as raw
material, will degrade his product or damage his process equipment. Neither generator nor
user will accept these risks unless he sees some offsetting advantage, most likely to be eco-
nomic gain.
The comparative cost of the transfer and no-transfer options to each transfer partner
can be expressed in the terms of the overall economic analysis. The cost of the no-transfer
option to the generator is CD , his cost of disposal of the waste. Suppose, if the waste is
transferred, that he pays only a fraction of his normal disposal cost (frj), a fraction deter-
mined by negotiation between generator and user. The difference in costs (Co - foCp)
becomes the profit which compensates him for the risk he incurs in transferring his waste.
Similarly, the user might only be required to pay for the scrap waste only a negotiated
fraction of its value (f^) as raw material equivalent. His saving over the no-transfer option
is (CR -fRCR ), compensating him for the risk which he incurs.
The benefits of the transfer depend not only on unit savings per pound, but also on the
total amount of the material. If T tons are transferred, the savings become:
For the generator: ^nP'^n)^ ( j ($) (5)
For the user: CR (1 - fR}T (^292.) ($) (6)
"V n i \ 100 /
These expressions can be plotted for easy reference (Figure D-l). Here the value of the
scrap waste to the generator (CD) or the user (CR ) is plotted against the amount (T) to be
transferred. The lines sloping across the logarithmic graph show the dollar savings accruing
to generator or user.
For example, suppose a chemical maker can use 100 tons of scrap waste to replace a
raw material whose comparable cost is Si per pound. Assuming that he pays only 70 percent
of the raw material value (fa = 0.70), user's profit (or saving) would be:
(5) (1-0.70) (lOO)f-^0-) = $3000.
\ 100
113
-------
Wntn with vilun lea than
ibout 1 (Vlb probably not
tramhrrable, dua to coiti of
tiamportation.
Amount (Tom)
1.000
10.000
FIGURE D-1 SAVINGS TO GENERATOR WHEN DISPOSAL COST REDUCED
30% OR TO USER WHEN RAW MATERIAL COST REDUCED 30%
114
-------
Likewise, suppose thut a generator can transfer 100 tons of his waste instead of paying for
its disposal at 54 per pound. Assuming that generator must pay (for costs of transportation
and transfer) only 70 percent of his normal disposal cost (fo = 0.70), his profit (or saving)
would be:
(5) (1-0.70) (100) (.H?0^ = $3.000.
\ too /
This value can be located in Figure D-l by finding the intersection of the horizontal
line associated with a value of 54 per pound with the vertical line associated with an amount
of 100 tons. These lines intersect at the $3,000 profit sloped line.
Note that Figure D-l applies only for the assumed 0.70 fractions of disposal cost
paid by generator and raw material cost (fR ) paid by user. For other values of the fractions,
the savings lines would shift vertically. For example, if FD = 0.6, the lines would shift down
by the fraction LrJLZ =M , and the profit would be $4,000; if fD = 0.85, profit would be
$ 1 ,500. For the general case, however, use Equation 5 for generator and Equation 6 for
user to evaluate savings in a potential transfer.
No matter how the profit picture looks to the generator or user, the transfer will not
take place if the amounts they pay do not cover transportation and transfer costs. The
amount available to cover these costs is foCD + fRCR ; in our example, where fo = fR =0.70,
it is 0.7 (Co + CR ). The transfer costs were estimated at 0.5 cents per pound and transport
costs for a 50-mile transfer were 0.25 cents per pound. Therefore, payments by generator
and user will cover transportation and transfer costs almost exactly if
=1 W/lb>
Figure D-l shows a horizontal line at this value of 1 4 per pound as a reminder that transfer
of material with sufficiently low value is not economic overall. The position of this line is
somewhat arbitrary, since it depends on the sum of both disposal and raw material costs,
whereas the graph's vertical axis shows the unit value of scrap waste either to generator or
to user but not to both. The line could be drawn at a value of 0.54 per pound if the disposal
cost (Co ) and the value as raw material (CR ) were equal. The purpose of this line is merely
to indicate the approximate value below which transfer is not likely to be feasible, due to
transportation cost.
Parameters of the Model
This economic model shows that the gains or benefits which may result from a poten-
tial transfer will be influenced by several factors. One is the distance between generator and
user; the greater the distance, the less likely the overall economic benefits. Another is
115
-------
the transfer costs. Administrative costs, whether incurred by generator and user themselves
or by a materials exchange, must be covered. Processing costs can be significant; if, for
example some impurity must be removed before the waste is acceptable by the user, costs
may run as high as 3 cents per pound, or even more, as is apparent from industry studies.8'18
Processing costs would be incurred by whomever removes the impurities, whether generator,
user, or a scrap reclaimer, but would be paid ultimately by the trading partners benefiting
from the transfer, namely generator and user.
The model also shows how these several costs influence the overall economic benefit.
Equation 4 makes apparent that an increase in the transfer cost, for example of 3 cents
per pound for processing the scrap waste, would require, if a constant economic gain is to be
maintained, that the value of the waste (Co + CR ) be greater by an equal amount.
Finally, the fraction of value paid by the user and the fraction of disposal cost paid
by the generator determine how much is available to cover transportation and transfer
costs. The higher these fractions, the more attractive the overall economic benefit, because
more money is made available to pay for these transport and administrative costs. Note,
however, that increase in these fractions also reduce the economic incentives to generator
and user to seek help from a third-party, the materials exchange, and increase their incen-
tives to arrange the transfer directly and thus to avoid paying the transfer agent's charges.
ECONOMICS OF TRANSFER BY A MATERIALS EXCHANGE
Income Earned by Completing Transfers
As the middleman between generator and user, the materials exchange must earn its
income from the transfers which it arranges. The analysis above showed that the net eco-
nomic benefit per unit of waste transferred, is:
b = C0 + CR - CTM - CA W/lb) (4)
However, generator will pay only a fraction of his normal disposal cost foregone (fo) in
compensation for his risks in the transfer, such as liablity. Similarly, user will pay only a
fraction of his normal raw material cost foregone (f&) to compensate for the risks he runs,
such as unexpected impurities in the scrap waste. Therefore, generator retains (1 -fo)Co
and user retains (1 - fp ) CR . If fp = fa = f, the first two terms on the right side of Equation
4 can thus become f(Co + CR ). As the transfer agent, the materials exchange bears the
transfer cost (CA )• Moving CA to the left-hand side of Equation 4, the sum of CA and b
116
-------
becomes the income y received by the exchange per unit of waste transferred. Making these
two adjustments, Equation (4) becomes:
y = b + CA = f(CD + CR) - CTM W/lb) (7)
Using f = 0.7, CT = 0.005 cents per pound-mile, and M = 50 miles, and changing the units
of y from cents per pound to dollars per ton by the factor (2000/100), yields:
(8)
The income earned from a transfer, Y, is obtained by multiplying Equation (8) by the
tonnage (T) of waste transferred:
= [0.7(CD+CR) -0.25] -22°° ($/ton)
or
Y = yT = [0.7 (CD + CR) - 0.25J (20)T ($)
[l4(cD+CR)-5]j
The net annual income to the exchange, X, is simply the sum of the Y's from all of the
transfers arranged during the year.
N
* = £ Y; <*> (9)
where N is the number of transfers during the year. This value of X must equal or exceed
the administrative costs of the exchange, which is estimated (Chapter VIII) to fall within the
range $50,000-$ 150,000; assume for illustration $90,000. Therefore:
N
90.000
Transfers Required to Break Even
Now, Y will vary from transfer to transfer, because both of the major determining
components (value and tonnage) will vary. However, if all of the transfers occurring in one
year had the same average value (Co + CR ) and the same average tonnage T, the above
equations could be combined to give:
117
-------
90.000 = NY
N[l4(CD+CR)-5.00]T
and we could solve for N, the number of transfers necessary to cover the exchange's admin-
istrative costs. This value, denoted NO , is:
., 90.000
N0 " r..,~ . „ > ---._ "D
The break-even value NO depends on value of the material and tonnage transferred, and
decreases as either or both of these factors increases.
Equation 11 can be plotted on a graph (Figure D-2). Data about the values and ton-
nages of materials which might be transferred will locate points on the lines denoting the
numbers of transfers required annually for the exchange to break even. For example, con-
sider a scrap waste material with value of 0.9^/lb. and being offered in lots of 1,000 tons.
First, enter Figure D-2 on its horizontal axis at value 0.9^/lb.; then, follow the 0.9^/lb. line
up to its intersection with the curve for 1,000 tons; finally, follow the horizontal line
through that intersection left to the vertical axis at 12, which shows that 12 such transfers
would be required annually to cover the exchange's administrative costs.
The graph shows that the number of transfers required increases sharply with decreas-
ing tonnage and decreasing value. In fact, if the waste values are less than 0.36^/lb, the
exchange cannot break even no matter how many transfers are arranged, because of the cost
of transportation when generator and user are assumed to be SO miles apart.
Potential Opportunities
A materials exchange operator, by using this graph, can assess whether a materials
exchange would be viable by plotting points representing potential waste transfers or actual
wastes offered for transfer. For example, Figure D-3 shows waste offers published recently
by the United Kingdom and the St. Louis clearinghouses. Waste tonnages were published,
but we computed their values by factoring current prices for virgin materials down to the
published concentrations. No penalty for possible impurities was exacted. Disposal costs
(which would accrue in the absence of transfer) were assumed to be zero. These assump-
tions tend to offset each other, but the real net effect on value could not be computed
with the information available.
Transfer of the offered caustic soda alone (at 42,000 tons and a factored value of
1.85^/lb) would more than finance the exchange's operations for a year; so would the
118
-------
1.000
0.38*716.
Transport costs
•xcnd incomt it
WHII vilun of
test thdn Oi36tf/lb.
Aaumptiora:
Income-0.70
-------
1.000
0.380lb.
100
Tranvort com
wend Income M
watte ValuM of
ten than
OiMtVlb.
ITon
• lnoom«-0.70(CD + CRl
Tmtport-EOml.
CM-0.006cm ~mi.
Exchange Operating
Cnt-ttQdOO/yr.
• UniM4 Kingdom Offw
St.UwltOK«n
NMiyl-Ethyl 1
Ketont-Tphnn. ' N
• MydrefloorleOifomleArid
iMoopyl AtaOhol
* Slyram
«Solvnti
mdrtaonm
• WMeOil • MMtivmt-Aomora
* THanliim Dtexlde Gntgw
Mmiwniuln
10
• CauAlcSoda
Unit Value (CD + CR) W/lb.l
100
FIGURE D-3 ECONOMICS OF TRANSFERRING SELECTED WASTES
120
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magnesium sludge (at 400 tons and 30^/lb). Other attractive offerings were ammonium
chloride (at 440 tons and lOtf/lb) and a methanol-acetone mixture (at 610 tons and 5.3^/lb).
Each of these alone would nearly finance operations for one year. The metals, lead oxide
and zinc carbonate, would earn less profit despite high values, because of their low tonnages
(11 and 14 respectively); between 40 and 70 of such transfers would be required each year.
Some offerings of large amounts of low-value wastes, principally spent and diluted
sulfuric and hydrochloric acids, do not fit well on the graph and thus deserve special dis-
cussion. Specific offerings from sample lists include:
Value of Waste
Tonnaga as Raw Material
Waste Offers (tons/yr.) (Mb)
Sulfuric acid 1.400 0.2
Hydrochloric acid 2.100 0.25
Sulfuric acid 165,000 0.5
Because the first two acid wastes are valued significantly below the assumed transportation
cost of 0.36^/lb, they could not be transported even SO miles at a profit. The tlu'rd offer
is interesting because its value is slightly more than the 0.36^/lb transport cost, and because
its tonnage is very large. If these cost values held, the income to the exchange for arranging
a transfer of this waste would be:
(165,000) 12j£- \ (0.50 - 0.36) = $462.000
which would more than meet the exchange's estimated annual operating cost of $90,000.
However, if the perceived value to the user were a little less and/or if the transportation
costs a little more, the potentially large profit could turn into an equally large loss. More-
over, it would be very difficult to find one or more users for this amount of waste acid
within a reasonable distance from the generator. Thus, the exchange should not expect to
finance itself on this type of transfer, regardless of how attractive the economics might
appear in theory.
The foregoing analysis and our assessment of potential opportunities presented in
Chapter III shows that a materials exchange which tries to derive its income solely from
transfers actually completed will experience continuing difficulty in paying its operating
expenses, even in a densely industrialized area such as the Philadelphia SMSA. Some scrap
wastes with attractive revenue potential are more likely to be transferred directly between
generators and users than by means of the exchange. It is doubtful that enough lower-
volume, lower-value wastes can be transferred to pay for the exchange's operating expenses.
121
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APPENDIX E
INSTITUTIONAL ANALYSIS AND OPTIONS
Before any scrap waste can be transferred, the many requirements—technical, eco-
nomic, marketing, and legal—must be satisfied for both generator and user. However, the
tasks of satisfying them can be distributed among various participants in the transfer sys-
tem. The simplest and most ideal case exists when generator and user are the same plant;
such transfers can be almost costless. Next best is when negotiations are carried out between
two plants or companies directly; in both cases, all requirements are satisfied by the transfer
partners themselves. At the next stage, when generator or user cannot satisfy all of its own
needs, the transfer agent steps in to help. In turn, the transfer agent does not operate
independently, but is influenced by various marketing and institutional factors.
INFLUENCES ON TRANSFER AGENTS
The transfer of a scrap waste is a complex transaction, fraught with uncertainties and
risks. The role of a transfer agent is therefore also complex. The many factors influencing
how a transfer agent might organize itself are noted in the following tables, designed to
help potential managers and sponsors of transfer services. By considering where their own
circumstances fall along the ranges of options, they can develop a profile of likely charac-
teristics of their organization. These tables were used in developing the comparison between
information clearinghouse and materials exchange (Table IV-1).
It is useful to consider the factors in two groups. The first includes characteristics
of the transfer agent itself; these are internal factors which are within the power of its
sponsors and managers to choose and control (Table E-l). The second group includes
characteristics of the organization's technical, business, and legal environment; these are
external factors which, once its managers have chosen its geographic location, are largely
beyond their power to control (Table E-2).
INSTITUTIONAL SPONSORSHIP
Several types of institutions might sponsor an information clearinghouse or a mate-
rials exchange. In theory, a transfer organization could be independent; but in practice,
such requirements as credibility with industry, technical resources, and economic backing
produce the need for some form of institutional or financial sponsorship. In fact, the
sponsor is the most important institution in the business environment of a clearinghouse
or exchange, especially in their initial states.
Preceding page blank
-------
Descriptor
TABLE E-1
INTERNAL CHARACTERISTICS OF WASTE TRANSFER ORGANIZATIONS
Spectrum
1.
2.
3.
4.
5.
6.
7.
a.
9.
10.
Services Offered
Service Role or
Strategy
Geographic Radius
Served Normally
Industry Coverage
Offered
Type of Clients
Sought
Number and Value
Scrap Wastes
Accepted
Volume of Activity
Legal Status
Private-Sector
Organizational
Forms
Public-Sector
Sponsors
By magazine By special
ads clearinghouse
Passive
25 mi. 50 ml. 75 mi.
i 1 i
1 sector of 1 industry
an industry
Small, local firms;
weak technical skills
I
Few, most valuable
only
i I I
Small, episodic,
unpredictable
Private Non-Profit Private
Individual Institution Firm
i i i
Private Informal Trade Asso-
Individual Network ciation
i I I
Single local Several local State
Government governments agency
Only handling
and transport
100 mi. 1,000 ml.
1 I
Related
industries
i i
Medium, regional;
moderate skills
i
i i
Moderate,
variable
I i
Private Firm Special-Pur-
with Govern- pose Govern-
ment Fran- ment Cor-
chise poration
i i
Independent,
small, single
company
Multistate Federal
authority agency
Analysis, reprocessing,
and transport
Active
i
2,000 mi.
I
Many
industries
1
Large, national firms;
strong technical skills
1
Many, even of marginal
value
Large, continual,
regular
i
Government Line
Agency
I
Subsidiary of large
multi-purpose compary
1
International
federation
124
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TABLE E-1 (Continued)
INTERNAL CHARACTERISTICS OF WASTE TRANSFER ORGANIZATIONS
11.
12.
13.
14.
15.
16.
17.
18
19.
20.
21.
22.
Descriptor
Skills of Staff
Technical Exper-
ience and Imagina-
tion of Staff
Size of Profes-
sorial Staff
Data Bank
Advertising
Pricing Policy
Financial
Policy
Income Sources
Risk level
acceptable
Style of
Management
Capital Require-
ments
Annual Operating
Budnet (all costs
Spectrum
Limited (men- Moderate Extensive (chemical analysis,
agerlal end (arranging) processing, marketing)
clerical) contracts)
i 1 i i i
Limited Moderate
i til
1 part-time manager, 1-3 full-time
few volunteer advisors
i ill
Blackboard, Files, library, staff experience, and contacts
simple card Limited Moderate Extensive
files
i ill
Informal Via maga- Special lists Occasional
word-of- zlne and marketing
mouth journals
Free At cost
i I I
Subsidized Subsidized Subsidies Breakeven
informally formally and revenues on revenues
I ill
Individual Informal Formal Client Fees Client Fees
subsidies subsidies subsidies (Waste Users) (Waste Gen-
erators)
None Small Medium
i i 1
Reactive Mixed
i I 1
0 $100.000
ii il
$10,000
il i 1
Extensive
3-6 full-time
Large, Computerized,
matching + retrieval
system
Vigorous
marketing
At profit
1
Profit or
surplus
Partial public Full public
subsidies subsidies
Large
Entrepreneurial,
aggressive
$350.000
$150,000
I i
accounted)
125
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Descriptor
TABLE E-2
EXTERNAL CONDITIONS INFLUENCING TRANSFER ORGANIZATIONS
Hindrance ^ Spectrum
1. Industrial locations
2. Transport cons
3. Number of small, low
technology firms
4. Disposal costs to
generators
5. Competing raw
materials costs to
users
6. Treatment Costs
7. Industry Communi-
cations
8. Generators' Analysis
and Knowledge of
Wane Stream
Chemistry
9. Users'Technical
Knowledge
10. Potential Value of
Scrap Wastes
11. Concentration of
Scrap in Waste
Stream
12. Regularity of
Streams (com-
bined total)
13. Quantity of Wastes
Available for
Transfer
14. Public Awareness
of Environmental
Dangers
15. Initiative Available
to Create Transfer
Organization
16. Regulations Requir-
ing Reuse or Safe
Disposal
17. Financial Incentives,
Subsidies, or Capital
18. Legal Liability
Dispersed
Few
Low and
Stable
High
Extensive,
inter-Industry
Much
Low
Low
Episodic
Small
Low
Individual,
Voluntary
Informal, Group,
Voluntary
Formal, Group,
Voluntary
Spotty
Regulation,
Mandatory
Few or none.
Limited scope
Unavailable
Unclear,
unlimited
Aid
Concentrated
Low
Many
High or Rising
Low
Little or none,
within Industry
Little or none
High
High
Sustained,
continuous
Large
High
Comprehensive
Regulation,
Mandatory
Many, Compre-
hensive
I
Available
I
Clearly defined
and limited
1
126
-------
The criteria for judging the merits of various sponsors derive both from the functions
which clearinghouses and exchanges should perform, and from the sponsor's interest. The
overriding interests of sponsors are two:
• effectiveness of the clearinghouse or exchange in facilitating transfers of
scrap wastes, and,
• Financial performance.
From these goals flows a simple hierarchy of related criteria:
• Economic success depends upon the transfer agent's effective performance
of services needed by client generators and users.
• Effectiveness depends upon enjoying the confidence of both types of clients.
• Confidence depends upon many factors, but at least the transfer agent's
reputation and ability in maintaining each client's data confidential both
from competitors and from government regulators.
• Thereafter, confidence rests upon the agent's skills and whether these suit
each client's specific needs. Skill requirements are relatively few and simple
for a clearinghouse, but many and complex for an exchange.
These criteria will guide in ranking the sponsorship arrangements most likely to favor effec-
tive performance. Table E-3 summarizes the factors operating for and against each type of
sponsor institution.
An industry association, in general, would be the best sponsor for a clearinghouse,
especially of the non-profit and subsidized or break-even type, because the association has
industry acceptance and the needed clerical skills. But this conclusion does not apply to a
materials exchange, because associations lack the needed technical and entrepreneurial skills.
At the national level, one logical candidate to sponsor an information clearinghouse would
seem to be the U.S. Chamber of Commerce, which might in time link and coordinate clear-
inghouse services by several regional chambers. Another would be the Manufacturing Chem-
ists Association (MCA), which represents 185 companies having 95% of the installed chemi-
cal manufacturing capacity in the United States and Canada. But, the MCA lacks a formal
structure of regional chapters; thus it would presumably have to offer a service of national
scope, perhaps relying upon both informal regional networks of its own members and exist-
ing clearinghouse programs, such as that in St. Louis.
127
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TABLE E-3
INSTITUTIONAL SPONSORSHIP: OPTIONS AND MERITS
Type of Operator or Sponsor
I. NON-PROFIT
INDUSTRY ASSOCIATION (non-profit)
Examples: Chambers of Commerce,
St. Louis Regional Commerce and
Growth Association, Greater Phila-
delphia's Penjerdel Corp., Manufac-
ing Chemists Association.
RESEARCH INSTITUTE (non-profit)
Examples: Franklin Institute, Phila-
delphia; Battelle, Stanford Research,
Swedish Water/Air Lab in Nordic
Exchange.
Information Clearinghouse
FOR: Acceptable to industry, skills avail-
able, costs low, compatible with sponsor's
minion, good for community relations,
operating experience of St. Louis and
European models available, start-up easy,
no legal hindrances.
AGAINST: Economic self-sufficiency not
yet proven, national assoc. of large firms
may not attract use by smell which need
service more.
FOR: Same as above; technical specialists
elso available; compatible with mission.
AGAINST: Requires contract funds to
operate, not likely to subsidize from own
reserves.
(Materials Exchange
FOR: Generally acceptable to industry.
AGAINST: Entrepreneurial Instincts,
technical skills and facilities locking,
thus not credible to potential clients,
broad membership unlikely to approve
service for narrow group, associations
not designed to manage/oversee business
enterprises, non-profit stetus conflicts
with for-profit subsidiary, start-up diffi-
cult, initial investment significant, risks
too greet, cannot subsidize heavily or
for long.
FOR: Acceptable to Industry, technical
skills and fecilitfes perhaps available,
non-profit stetus may reduce some costs
(e.g.. interest, taxes).
AGAINST: Management of e business,
f inanclel risks, and likely need to sub-
sidize not compatible with research mis-
sion; entrepreneurial skills perhaps
insufficient, detailed knowledge of pro-
cess industries end materials markets
probably insufficient; compliance with
regulations governing haulers and proces-
sors of industrial wastes.
II. INDUSTRIAL FOR-PROFIT
INDUSTRIAL RESEARCH FIRM
(for profit) Exemple: Arthur D.
Little, TRW.
SECONDARY MATERIALS FIRMS
(metals, paper, etc., but not
chemicals; "Brokers" transfer
information only, "Dealers"
transfer materials).
FOR: Some as for non-profit, institute.
AGAINST: If a limited, subsidized demon-
stration, needs outside contract funds; if
a business venture, needs corporate invest-
ment (if capital not better invested else-
where) and staff interest; venture may not
match business goals; overhead costs high
in competition against specialized broker
or listing service.
FOR: Loosely related to existing busi-
ness, brokers know economics end tech-
niques of clearinghouse role, useful scan-
ning and market research tool for dealers.
AGAINST: Opportunity costs, reluc-
tance to expend into unproven new
services and markets.
FOR: Acceptable; technical, menagerial,
and some market skills available.
AGAINST: May not be compatible with
research business, continuous staff inter-
est not assured, opportunity costs prob-
ably high, thus Internal financing diffi-
cult, overhead costs burdensome.
FOR: Dealers have basic handling and
transport facilities.
AGAINST: Brokers end dealers both
lack technical, market, and regulatory
skills In chemical process industries;
brokers also lack facilities; opportunity
costs end start-up costs high; Internal
financing difficult.
128
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TABLE E-3 (Continued)
Type of Operator or Sponsor
CHEMICAL BROKER
Example: American Chemical
Exchange, Trans Chemical.
CHEMICAL RECLAMATION FIRM
Examples: Rollins-Purle, Shirley-
Aldred Group (U.K.). Wlmborne-
CPR, Western Processing, Zero
Waste Systems.
Information Clearinghouse
FOR: Established reputation, technical and
industrial knowledge, closely related to exist-
ing services and clientele, economics of
clearinghouse role familiar, useful scanning
and inventory tool.
AGAINST: Opportunity costs, uncertainty
of profits, not eligible for government
subsidy.
FOR: Some as broker; even if profit low or
negative, still useful adjunct to major services.
AGAINST: Same as broker.
Materials Exchange
AGAINST: No handling facilities, labs,
or technical staff; not compatible with
information brokerage business.
FOR: Established reputation and credi-
bility, facilities, staff, business, and
regulatory knowledge available; centre!
to business mission; fits entrepreneurial
style.
AGAINST: Opportunity costs of divert-
ing resources from reclaiming materials
with established value.
III. GOVERNMENT
GOVERNMENT REGULATORY
AGENCY State end local environ-
mental protection departments.
GOVERNMENT SERVICE AGENCY
Commerce and development depart-
ments, perhaps via government lab,
e.g. U.K.'s Warren Springs Leb.
GOVERNMENT CORPORATION
Maryland Environmental Service
(MES), New York Environmental
Facilities Corp.. Connecticut
Resource Recovery Authority, Gulf
Coast Waste Disposal Authority,
Philadelphia Industrial Development
Corporation, local sanitary districts,
multlstate authorities.
FOR: Cost low. skills available, useful tool
to help inventory wastes, agency's mission
provides incentive, start-up easy.
AGAINST: Conflict of Interest with regula-
tory role, thus most generators will not use
voluntarily; enforced listings neither accept-
able politically nor feasible administratively;
thus limited, partial coverage reduces effec-
tiveness and economic viability.
FOR: Same as regulatory agency, except
less justified by agency missions.
AGAINST: Competition for resources from
agency's other programs, opposition from
those agency constituents not benefited;
generator's suspicion that data not insulated
from regulatory agencies.
FOR: Same as above, if justified by mission;
greater efficiency possible.
AGAINST: Same as above. Conflict of inter-
est actual (e.g., Maryland Environmental
Service Is within Dept. of Natural Resources)
or suspected by industry.
FOR: Minimum technical, legal, end
managerial skills available; storage and
transport available, some costs low (no
taxes or interest), incentive from mis-
sion take needed site by eminent domain.
AGAINST: Conflict of interest; key
skills probably lacking; competing against
private firms; serving only narrow sector
of public; start-up difficult; geographic
coverage limited to state or local bound-
aries; budget, accounting, and civil ser-
vice procedures costly and limit essen-
tial flexibility; costs and risks make eco-
nomic success highly unlikely.
FOR: Minimum managerial skills, per-
haps some facilities, some costs low,
eminent domain.
AGAINST: Even fewer technical skills
the regulatory agency, less incentive, end
all other barriers noted above.
FOR: Greater flexibility than agencies
to mobilize skills and resources and start-
up, eminent domain power, costs lower
via greater efficiency from business man-
agement practices, perhaps required by
law to serve localities (MES).
AGAINST: Conflict of interest, demand
too low or unstable to justify hiring key
technical staff, risks end costs may con-
flict with obligation to be economically
viable, greater efficiency possible but
not assured, competing against private
firms, geographic service area may con-
flict with natural economic market erea,
no advantage over private firms In com-
plying with environmental regulations.
129
-------
In the for-profit industrial sector, secondary materials firms, dealing in scrap materials
such as metals and paper, might seem to possess some interest and business skills for ventur-
ing into transferring industrial process wastes; but such firms typically lack the special
technical skills and facilities needed for success in the quite different industry based on
process wastes. Chemical brokers and reclaimers, however, do have such technical and
marketing knowledge, as well as reputations with potential clients of transfer services. They
are therefore the most likely candidates for investing in the waste transfer business, first by
testing the market by offering a clearinghouse service, then by progressing to a full mate-
rials exchange service.
Most government agencies have the facilities and skills to offer information clearing-
house services. None, however, even those lacking regulatory powers, would be acceptable
to industry. Moreover, few have the technical skills, the entrepreneurial style, and the
organizational mandate required to run a materials exchange. Financial sponsorship is
possible, but only when confidentiality of client data is guaranteed strictly. This conclu-
sion applies to all levels of government—federal, regional, state and local—and to all types
of bodies—including line agencies, special-purpose governments and corporations, public
utility commissions, and public utility companies holding franchises from government
and operating under its supervision.
Regional Networks for the United States
Opportunities for transfers between services will grow. The St. Louis clearinghouse
already accepts listings from outside the St. Louis area; it also received two inquiries about
establishing reciprocal agreements with transfer services in other regions. Zero Waste Sys-
tems reports that it occasionally facilitates transfers between the San Francisco Bay Area
and other locations, including Los Angeles and Texas. Informal networks operate within
some professional societies and large corporations.
In each case, the economic gains of the transfer must be large enough to cover the
greater costs of interregional transportation. Moreover, the more attractive a potential
transfer is economically, the more incentive a generator and a user will have to find each
other directly and, conversely, the less incentive they will have to seek help from a transfer
service and pay its charges. Nonetheless, occasions will arise when a scrap waste offered
and listed by one service will match a request listed by another service, and procedures for
such opportunities should exist.
The next step would be for several local services to be linked with each of them via
one central switchboard, such as the Manufacturing Chemists Association or U.S. Chamber
of Commerce. This network of transfer services seems most efficient in that it allows local
agents to concentrate on the local situation while providing the opportunity for inter-local
or inter-regional transfers of selected waste offerings.
130
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APPENDIX F
LEGAL ASPECTS OF TRANSFERRING WASTES
THE POTENTIAL FOR LEGAL LIABILITY
The liability questions surrounding waste transfer cause both concern and confusion.
Concern stems from recognition that some industrial waste may be potentially toxic or
hazardous, particularly if handled improperly. Confusion stems from the lack of clear legal
precedents about where responsibility lies in the event of accident.
The possibilities for accident are legion. A few obvious examples include: spillage in
the transfer of wastes from generator to hauler, leakage from containers used in transport;
overturning of trucks; ailments, from skin rash to cancer, in persons handling waste at any
stage; development of customer dissatisfaction with products, as manufacturers shift from
virgin materials to scrap waste materials.
An accident is "an event occurring by chance or from unknown causes". Nonetheless,
if an accident causes loss or injury, the injured party may be entitled to legal relief. Ques-
tions about who provides relief can be of paramount importance to the parties to a transfer.
Answers may vary from state to state in accordance with their statutes.
Thus the danger of liability looms large in the minds of both generators and potential
users of wastes. If transfer of wastes proves to be an invitation to law suits, few companies
will agree to participate. Litigation is both time consuming and expensive, not to mention
the probable adverse effect on corporate image.
At the outset, it should be recognized that legal considerations can be viewed as creat-
ing both positive and negative incentives relevant to the development of the waste transfer
concept. The continued development and refinement of pollution standards, in conjunction
with vigorous enforcement of those standards, must be seen as creating positive incentives.
As private disposal becomes increasingly difficult and expensive to maintain, generators are
apt to become more responsive to the possibilities inherent in transfer.
Conversely, a regulatory environment which encourages or otherwise makes private dis-
posal simple to the point of being costless will discourage experimentation with transfer
services. In this context, any potential for legal liability which may exist can be expected to
be cited as one reason for noninvolvement. This liability may, in many respects, be remote.
It is, however, a factor of concern especially to waste generators.
131
-------
In general, this potential falls into three categories:
(1) public liability of certain kinds of waste;
(2) liability to third parties for injury resulting from waste; and
(3) contractual liability to users with regard to the contents of waste.
At the heart of each of these categories lies a common fear among various generators that
they will be held legally accountable (or be accused of being responsible for) the effects of
waste under circumstances over which they have relinquished control, namely while it is in
transit or in the possession of either a materials exchange or a user.
Public Liability
Waste products with particularly hazardous or demonstrably toxic quantities are pres-
ently subject to a variety of statutory patterns and enforcement policies. It is difficult to
generalize about the various approaches involved because of the differences in potential
harm which result from different wastes. In a limited number of instances, as in the case
of radioactive materials, a combination of federal statutory and administrative policy makes
transfer of the waste legally impossible. In others, as in the case of explosive or highly
inflammable materials, legal standards affecting transportation and handling add substan-
tially to the cost of facilitating a transfer.
In the overwhelming majority of cases, the waste involved is neither explosive nor so
obviously dangerous, hazardous, or toxic, as to have given rise to specific statutory treat-
ment of the type described here. Any given waste, however, may be potentially injurious
under some circumstances. Consequently, the enactment in recent years of pollution control
statutes at the state level has given rise to fears on the part of generators of uncertain en-
forcement. Specifially, they are concerned that wastes which have been traditionally dis-
posed of privately and without broader exposure may become exposed to spills and other
mishaps which may ultimately result in a violation of these statutes. More specifically, many
generators fear that they will be legally held responsible for the packaging, handling, and
transportation of waste while under the control of a transfer agent or a user.
There is some legitimate basis for those fears. Standards in pollution law are presently
in an evolutionary process. Liability can exist under a theory of negligence or one of strict
accountability, i.e., without regard to the care exercised. Moreover, violations could result
in criminal fines or injunctions, both of which could result in potentially large legal fees
and/or adverse publicity. As long as there is uncertainty as to the standard of care which
might become involved, generators are likely to be somewhat inhibited from injecting cer-
tain kinds of waste into Ihe public stream of commerce.
132
-------
Closely related to the question of public liability is the question of public exposure of
information relevant to certain kinds of waste. Along with the federal government, almost
all states place some kind of controls on the transportation of some potentially harmful
materials (including wastes). New Jersey and Pennsylvania emphasize controls of "indus-
trial" waste generally. Others tend to focus on "hazardous" waste. Under either approach,
however, there is some need to identify the particular waste being transported.
This identification would be in public documents. Although governments have a
responsibility to keep trade secrets confidential, there remains nonetheless a concern by
generators that information would be available which might prove valuable to competitors
anxious to learn of manufacturing processes or other internal considerations relevant to the
trade secrets. Or, it might be interpreted by particular government agencies or public-
oriented groups as deserving of further inquiry relevant to pollution or product content.
The concern here is for scrutiny over matters which are perceived to be solely private.
If it were known that scrutiny of this type was harmless, generators would exhibit less con-
cern. At this stage, however, they are, in fact, concerned about unknown ramifications, and
that leads to some caution or suspicion about waste transfer possibilities.
Liability to Third Parties
A separate legal concern of generators is the potential for liability to third parties,
namely, persons other than those directly involved in the transfer. The most recurring fear
is liability for personal or property injury resulting from a waste in transit between gener-
ator and user.
Liability of this type is not unlike the public liability discussed above. In the former,
liability generally exists in the form of administrative or criminal penalties or injunctive
(i.e., cease and desist) orders. In contrast, liability to third parties is conceived in terms of
compensatory damages for injuries sustained. It can lead to substantial monetary judgments,
as in the case of multiple deaths. By and large, this would result from the application of
"tort" law.
The general legal standard for tortious conduct, common to all the states, is one of sim-
ple negligence. In the context of transferring waste, negligent behavior could become in-
volved in packaging, transporting and general handling during movement. The standards will
differ depending on the potential for injury of any particular waste. For example, the greater
the toxicity involved, the higher the standard of care which will be imposed by a judge or
jury under negligence law.
133
-------
Legal responsibility for negligent behavior does not extend beyond the party or parties
responsible for the negligence. Thus, as a matter of strict rational principle, a waste gen-
erator would not be held accountable for the negligent behavior of scrap users or a materials
exchange. As a practical matter, however, generators tend to be large and publicly-known
corporations. They are often perceived as having the resources to compensate injured per-
sons. They have, therefore, some reasonable fear that the transfer process will force them
into a zone of liability exposure beyond their control.
This exposure is compounded by the threatened emergence of new standards of legal
accountability in the context of the public statutes and administrative regulations. There is
substantial support in the general law of tort recovery for the incorporation of new stand-
ards adopted to prevent certain kinds of harm. Thus, an emerging body of administrative
law which is preventive in orientation-designed to impose strict standards on the part of
waste generators without regard to the party who eventually causes harm-could conceiv-
ably be brought into play as the appropriate standards for determining and assessing com-
pensation responsibilities.
Here again, the issue is largely one of the unknowns inherent in an emerging body of
law. Waste generators are, and will be, holders of substantial insurance coverages designed to
protect them against liabilities of this type. At the same time, any increase in liability will
eventually result in an increase in insurance premiums. Thus the question of liability mani-
fests itself in economic terms; given the potential for liability, generators will demand com-
pensating benefits as a condition for participating in waste transfers.
Contractual Liability
The third legal concern is that of contractual responsibilities. In its most operable
form, operations of a materials exchange will be manifested in written documents evidencing
the various terms and conditions negotiated. An information clearinghouse is not likely to
need such contracts; an exchange handling the materials needs this protection.
For the most part, these contracts can be expected to represent the agreements of the
parties. Therefore, they will be enforceable on terms and conditions mutually defined. Thus,
questions involving liability for third party inquiry can be stipulated by contract and any
risks anticipated can be allocated accordingly. To the extent that generators tend to be larger
and financially stronger organizations, they will have the negotiating leverage to shift the
responsibility for ultimate liability to the waste users. This is not necessarily unfair. Unless
some new standard of responsibility is developed (which would place liability with the
exchange as a risk-spreading cost to be shared equally by all participants), users would seem
to be in the best position to control the handling of the waste and take the steps necessary
to prevent foreseeable mishaps.
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One concern is the possible responsibility for the quality of waste. Generators as a class
would prefer to participate in a transfer on an "as is" basis; that is, they would not want
contractual responsibility for the specific chemical content of a generally defined waste
product. Under this approach, users would be counting on the chance that a given scrap
contained a specific compound of sufficient quantity and/or purity to make accepting it
economically feasible.
This, however, could be viewed as an essential part of normal market mechanisms. Any
fixed responsibility which could place generators in a warranty position would escalate the
cost of the transfer beyond feasibility. Users can be presumed to have sufficient technical
knowledge to behave as informed buyers and can be expected to negotiate price in terms of
expected product performance.
Market mechanisms can also be expected to help prevent undue responsibilities being
placed on the exchange itself. Because of the position occupied by the exchanges, they will
be able to secure needed protection through contractual stipulation. That is, the essential
quality of the role performed by the exchange affords sufficient negotiation leverage to pre-
vent the acceptance of any responsibility for the conduct of the transaction itself.
OTHER LEGAL CONSIDERATIONS
The regulatory framework affecting alternative institutional arrangements and laws
which might either inhibit or favor one over the other were examined. There are impacts on
transfer organizations which result indirectly from governmental legal and regulatory activi-
ties; for example, the stricter the enforcement of governmental control standards, the greater
the economic incentives for generators to find alternative means of disposal. In general, how-
ever, there are no particular laws or regulations which have any comparable direct effects.
The general law of tort and contractual liability suggests some implications for materials
exchanges. As with other legal considerations, however, these implications are not unique in
applying to waste transfers or materials exchanges, and must be viewed as raising cost con-
sequences which fall into the category of imposing the normal obligations inherent in almost
any economic pursuit. Moreover, these legal questions become moot when economic analy-
sis shows that a company acting purely as a materials exchange would not be likely to sur-
vive financially.
Two other broad legal areas were examined: legislation and regulations concerned with
waste management and related environmental issues; and anti-trust standards, because of
their potential for affecting industry associations, the most likely sponsors of clearinghouses.
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Statutes and regulations of the federal government, New Jersey, and Pennsylvania
were examined. Local ordinances are generally derived from and less sophisticated than
their state statutes. Nothing in this legislation can be interpreted either to favor or obstruct
the development of one form of transfer organization or sponsorship over others. As noted,
stricter enforcement of pollution control standards can be viewed as encouraging transfer as
a more economical form of disposal by generators. Similarly, the authority of the U.S.
Department of Transportation (DOT) to regulate the transportation of some materials under
authority of the Hazardous Materials Transportation Act of 1975 necessarily has cost conse-
quences which indirectly affect the economics of negotiated transfers. Since DOT's author-
ity reaches all aspects affecting commerce, it extends to transfers within state boundaries
and can be viewed as applicable even in states which lack equivalent legislation. Nonetheless,
such regulation must be viewed in the same category as general economic regulation. Any
cost consequences, as for example with taxes, shall be considered a normal part of the con-
duct of the activity concerned.
Much the same can be said for anti-trust issues. The primary administrators of the anti-
trust laws—the Federal Trade Commission and the Department of Justice—have shown
particular concern for the activities of trade associations and other arrangements jointly
sponsored by two or more members of the same industry. The general thrust of the law is
to discourage joint undertakings which might stabilize prices, inhibit new entries into field,
or prevent one of the sponsors from pursuing that activity by itself. It is difficult to visualize
institutional arrangements for waste transfers which would run afoul of these anti-trust con-
straints. Moreover, our economic analyses show that the availability of profit-making oppor-
tunities are at best limited. Furthermore, existing clearinghouses are typically subsidized and
sponsored by industry associations because other institutions are not willing or acceptable.
Therefore, absent an unusual situation arising from improper motives, the anti-trust laws do
not appear to impose either direct or indirect restraints on the development of association-
sponsored clearinghouses or commercial information services.
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GLOSSARY OF NAMES AND TERMS
CEFIC. Conseil European des Federations de 1'Industrie Chimique (Council of European
Chemical Industry Federation), Brussels.
HWMD. Hazardous Waste Management Division, one of several operating units of the
Office of Solid Waste Management Programs (OSWMP), U.S. Environmental Protec-
tion Agency.
MCA. Manufacturing Chemists Association, Washington, D.C., the major North American
industry trade association, made up of 185 large companies having 95% of installed
capacity in the United States and Canada.
OSWMP. Office of Solid Waste Management Programs, a major program organization of the
U.S. Environmental Protection Agency (EPA). One of several units within OSWMP
is the Hazardous Waste Management Division (HWMD).
Abfall. German term for waste or residue. (Afval in Dutch.)
Abfallborse. German term for "waste exchange" (called waste information clearinghouse
in this study). (Afvalbeurs in Dutch and Flemish; Avfallbors in Swedish.)
Bourse des De*chets. French term for "waste exchange" (called waste information clear-
inghouse in this study).
Broker. An agent which negotiates transactions. In the secondary materials market, an
organization which arranges transfers of secondary materials but, unlike a dealer,
does not handle the materials physically.
By-product. A salable industrial residue with an established use.
Clearinghouse. See information clearinghouse.
Client. The term adopted by this study in order to maintain a clear distinction between
"users" of a transfer service (both generators and receivers) and "users" of the trans-
ferred wastes. Not meant to imply that transfer agents must require fees from gen-
erators and receivers; in fact, most do not now charge significant fees. In the future,
however, charges may be adopted in order to pay for costs now being subsidized.
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Exchange. In this study, the term transfer is used instead of "exchange" as more accurately
describing the subject of the study. "Exchange" is used to describe one type of transfer
organization: the materials exchange. It is also sometimes part of the official name
of an organization (Nordic Waste Exchange, U.K. Waste Materials Exchange).
Generator. Company or plant producing an industrial residue, and thus a potential client
of a transfer agent or service.
Information Clearinghouse. A transfer agent which handles information only, typically
by publishing offers of and requests for wastes and referring inquirers to the company
originating the offer or request. These organizations usually operate passively; that is,
they do not seek out matches for listed items or help to conduct transfer negotiations.
Materials Exchange. A transfer agent which, unlike the information clearinghouse, partici-
pates actively in the transfer, usually by acquiring, reprocessing, and selling the mate-
rial. The materials exchanges identified in this study are profit-seeking, private-sector
operations, some independent and others part of larger companies. Most U.S. transfer
organizations are of this type.
Receiver. Party buying or accepting a scrap waste material for its reuse value. The receiver
may also by the user of the waste, or may be only the middleman who treats the
material to certain specifications before selling it to the ultimate user.
Residue (industrial). Material left over as a result of an industrial process. Includes both
wastes and by-products; not limited to the chemical industry.
Scrap chemicals or scrap waste. The materials of primary concern to this study. They are
the continually-changing class of chemical wastes which have some reuse value when
the economics are right, but which have not yet become established by-products. Their
non-chemical equivalent is secondary materials.
Secondary materials. Non-chemical recoverable items, primarily from municipal wastes.
Examples are paper, bottles, cans, and textiles, Comparable to scrap chemicals in the
chemical industry.
SMSA. Standard Metropolitan Statistical Area, one of the geographical divisions defined
by the U.S. Bureau of the Census for purposes of aggregating data and making com-
parison on a standard basis. An SMSA's boundary, contiguous with those of counties,
is drawn to include both tiie city and the surrounding suburban and rural areas within
commuting distance.
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Special-purpose government. Generic term for a governmental organization created to
provide special or limited services in a specified geographical area; examples are port
authorities, sanitation districts, and industrial development corporations. These public
corporations (described legally as "bodies corporate and politic") usually differ from
general-purpose governments in being allowed to apply principles of business admin-
istration; they differ from private corporations in having special financial powers and
being chartered to provide specific services to the public.
Transfer. Generic term, replacing "exchange," for the acquisition by one plant or indus-
try, for the purpose of reuse, of waste material generated by another plant or indus-
try. Both a noun (a transfer) and a verb (to transfer).
Transfer agent. Any person or organization providing services intended to facilitate trans-
fers of industrial wastes. Two types of transfer agent or service are described in this
study: the information clearinghouse and the materials exchange.
Transfer organization. A transfer agent that is an organization rather than a person.
Trash waste. Waste that has no current or foreseeable reuse value and must be disposed
of into the environment.
User. The ultimate consumer of the scrap waste, using it as an input to his manufacturing
process. The user may receive the transferred waste either directly from its generator
(with or without the assistance of an information clearinghouse) or indirectly via a
materials exchange or scrap reclaimer.
Waste. Except where otherwise designated (e.g., household waste, municipal waste), a
general term for industrial residues other than established by-products. For the chem-
ical industry, this study divides wastes into two categories: scrap chemicals and trash.
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REFERENCES
1. U.S. Environmental Protection Agency (EPA), Hazardous Waste Management Division,
"Industrial/Hazardous Wastes", (unpublished), 1976.
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6. Federal Register, Vol. 41, No. 161, Wed., August 18, 1976, pp. 35050-1.
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17. Shaver, R.G., et al., "Assessment of Industrial Hazardous Waste Practices; Inorganic
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19. "Dutch Center for Industrial Waste Exchange", Translated from Nederlandse Chemische
Industrie, No. 18, September 1973.
20. "Beilage zur Ausgabe 8/74", Verbands-Mitteilungen, Frankfut-am-Main, Germany:
Verband der Chemischen Industrie e.V. (Association of the Chemical Industry), 20
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