Unlocking Value with Advanced Recycling for Industrial Waste

June 30, 2025

shredded mixed plastic waste

 As global manufacturing, energy, and consumer‑goods sectors expand, so too does the mountain of industrial by‑products they generate. According to BusinessWaste UK, industries worldwide produce roughly 9.2 billion tonnes of waste each year, with the United States alone accounting for about 6 billion tonnes. Yet despite this scale, only 2 percent is reintegrated through recycling, while nearly 40 percent ends up in landfills facing projected capacity constraints by 2036. This disconnect not only squanders valuable materials but fuels environmental harms — from groundwater contamination to greenhouse‑gas emissions.

Why Mechanical Recycling Is No Longer Enough

For decades, mechanical recycling has been the backbone of corporate sustainability programs. In practice, however, this approach stumbles over mixed, contaminated, and multi‑layer waste streams. Common household and industrial plastics—PET, HDPE, PVC, LDPE—each require distinct melt‑processing conditions, and thermoset polymers simply cannot be remelted.

Contaminants such as food residues and mixed resins further degrade output quality and drive up processing costs. Recent investigations even suggest that recycled plastics can harbor concentrated toxins (e.g., carcinogens, endocrine disruptors), complicating health and safety compliance. Collectively, these factors relegate as much as 90 percent of plastic waste beyond the reach of conventional systems.

Looking to Sustainable Alternatives

 
Waste-to-Energy (WTE): Recovering Renewable Steam and Electricity

When mixed plastics are too heterogeneous or contaminated for conventional recycling streams, thermomechanical treatment facilities (TTFs) (also referred to as waste‑to‑energy (WTE) facilities, energy-from-waste (EFW) facilities, etc.) provide a resilient fallback that still aligns with circular‑economy goals.

Rather than sorting and processing each resin type, TTFs combust post-recycled mixed plastic waste alongside municipal and industrial refuse, generating high‑pressure steam to drive turbines for electricity and district heating. This approach diverts materials that would otherwise clog recycling lines or end up in landfills, reducing overall waste volume significantly and ensuring that even the most complex, multi‑layer plastic packaging contributes to energy recovery rather than landfill disposal.

These modern installations employ advanced flue‑gas cleaning systems — electrostatic precipitators, fabric filters, and selective catalytic reduction units — to capture particulates, acid gases, heavy metals, and dioxins, bringing emissions in line with stringent industrial‑source standards. In doing so, they help sustainability teams reconcile the imperative to manage non‑recyclable plastics with commitments to air‑quality compliance and community health.

By integrating waste-to-energy technologies into a broader waste‑management portfolio, companies can reduce tipping‑fee expenditures, support a dependable, domestic power supply, and meet waste‑diversion targets when material recycling isn’t feasible. With the right partner, they can even generate renewable energy credits (RECs) to further improve their environmental performances.

Alternative Engineered Fuel (AEF) Production: Creating Low-Carbon Inputs

Like WTE technology, alternative engineered fuels (AEFs) offer a high‑value outlet. AEF production blends non-recyclable shredded plastics with other high‑calorific wastes (e.g., wood offcuts, paper fibers, rubber crumbs), homogenizes the mix, and compresses it into pellets or briquettes. These uniform, energy‑dense fuels can then replace coal or natural gas in industrial furnaces, cement kilns, and pulp‑and‑paper boilers without major equipment modifications.

By channeling complex plastic waste into AEFs, companies achieve multiple sustainability wins: landfill diversion rates climb, Scope 1 emissions drop as fossil fuel consumption wanes, and waste‑handling costs fall in tandem with reduced tipping fees. Moreover, AEF adoption stabilizes fuel procurement by turning local waste streams into reliable energy sources — transforming what was once an operational headache into a strategic asset for both world and wallet.
alternative-engineered-fuel

 

Pyrolysis: Cracking Polymers at the Molecular Level

Pyrolysis — the thermal decomposition of organic materials at 400–900 °C in oxygen‑free reactors — offers another path around landfill disposal. Alfa Laval’s industry overview notes that mixed plastics, rubber, and biomass can be converted into:

  • Bio‑Oil: A liquid feedstock refinable into diesel substitutes or virgin‑quality polymers.
  • Syngas: A hydrogen–carbon‑monoxide blend usable for heat or power.
  • Bio‑Char: A carbon‑rich solid for soil amendment or activated carbon production.

An RSC Green Chemistry review further highlights that, depending on feedstock pretreatment, pyrolysis can yield monomers as pure as those derived from petrochemical cracking, enabling closed‑loop circularity even in food‑grade applications. Companies can therefore choose to prioritize material circularity by refining bio‑oil back into plastics or by leaning into energy recovery via syngas for onsite power, aligning with their specific ESG objectives.

Gasification: Another Way to Turn Waste Into Energy

While WTE and AEF rely on oxygen-rich combustion, and pyrolysis targets molecular breakdown, gasification operates under limited oxygen at temperatures above 700 °C to convert carbonaceous wastes (municipal, industrial, agricultural) into syngas (CO, H₂, CH₄, CO₂). The U.S. Department of Energy explains that biomass gasification can support hydrogen production and clean‑energy systems, reducing reliance on external grids and fossil fuels. When combined with carbon‑capture technologies, gasification facilities can approach net‑zero or even negative emissions, offering a compliant alternative to legacy systems.

Chemical Recycling: Restoring Polymers to Monomers

Beyond heat‑driven routes, chemical recycling methods such as depolymerization and solvolysis dissolve or break polymer chains back into original monomers. A recent ACS Omega study on textile applications demonstrates that blended fibers and multi‑layer packaging, which are traditionally landfilled, can be chemically unzipped, purified, and repolymerized into virgin‑quality resins . This molecular‑level approach circumvents the quality degradation endemic to mechanical recycling and broadens the material portfolio to include rubber, composites, and textiles.

AI‑Driven Sorting: Ensuring Feedstock Purity

All advanced conversion processes hinge on high‑purity inputs. AI‑enhanced sorting systems that utilize hyperspectral imaging, infrared sensors, robotic pickers, and more can process up to 160 items per minute, boosting purity by 8–12 percent versus manual lines and reducing labor‑risk exposure. Recycleye reports that AI robots in modern material recovery facilities cut sorting costs by as much as 50 percent, while delivering consistent quality for downstream recycling operations.

skyscraper-and-treeA Compelling Business Case

Advanced recycling isn’t just an environmental imperative. It also delivers concrete economic and operational advantages that drive business performance:

  • Cost Savings: Landfill tipping fees average $50–80 per ton, whereas advanced recycling pathways can reduce net waste‑handling costs to around $30 per ton (NJ WasteWise Case Studies).

  • Job Creation: The United States recycling sector supports nearly 700,000 jobs and generates over $37 billion in wages (EPA REI Report).

  • GHG Reductions: An Argonne NL analysis finds that producing plastics via pyrolysis cuts cradle‑to‑gate emissions by up to 23 percent versus virgin production, and by nearly 50 percent compared to dated incineration systems. Modern systems, like those found within TTFs reduce net GHGs even further when avoided methane is considered, making them a rare, carbon-negative source of renewable energy whose RECs are 10x more environmentally beneficial than those derived from wind or solar.

  • Regulatory Alignment: Technologies like chemical recycling and gasification help companies meet or exceed mandates such as the U.S. EPA’s 50 percent recycling goal by 2030 and emerging Extended Producer Responsibility (EPR) laws.

Moreover, leading brands gain measurable market benefits: ESG‑driven investors reward circularity leaders with valuation multiples that exceed their peers, and consumer surveys show a willingness to pay premiums for products with verified recycled content. On the flip side, according to a Simon-Kucher & Partners study, 76% of surveyed consumers would stop buying from companies that engage in practices that negatively impact the environment, employees, or the local community.

Overcoming Roadblocks

Challenges remain in scaling these innovations. Many advanced‑recycling facilities are still in pilot stages, and lifecycle‑assessment (LCA) studies occasionally report higher energy inputs for chemical routes if powered by fossil grids. Such findings underscore the necessity for transparent, third‑party‑verified LCAs and greater integration of renewables in processing plants. Public perception and regulatory ambiguity — some critics equate pyrolysis to “burning plastic trash” with potential air‑pollution risks — demand proactive stakeholder engagement and robust emission‑control investments.

Moving Forward

For EHS, Operations, and Sustainability leaders, advanced recycling represents a strategic inflection point. By utilizing WTE and AEF technologies, piloting pyrolysis units, licensing chemical‑recycling processes, and deploying AI sorting, organizations can:

  1. Transform waste from a cost center into a reliable source of feedstock and energy.
  2. Demonstrate verifiable GHG reductions and resource‑efficiency gains.
  3. Strengthen compliance with tightening circular‑economy regulations.
  4. Capture new revenue streams from secondary raw materials.

In embracing these technologies, businesses shift from a linear “take‑make‑dispose” mindset toward a resilient circular model — one where waste becomes the lifeblood of tomorrow’s products and fuels modern growth.

 


For more on advanced recycling and the powerful, value-creation solutions that can support it, speak to one of our sustainability experts.

 

A major source of net carbon negative energy

8 acquisitions
For each ton of waste we recover for energy, Covanta saves 1 ton of CO2 equivalents (CO2e). In 2022, we avoided 19 million metric tons of CO2e.

A major source of net carbon negative energy

8 acquisitions
For each ton of waste we recover for energy, Covanta saves 1 ton of CO2 equivalents (CO2e). In 2022, we avoided 19 million metric tons of CO2e.

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