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Posted: 2023-07-24 20:12:58
  • In short: Months on from the collapse of soft plastic recycling scheme REDcycle, stockpiles are being consolidated
  • What's next? Options for the stockpiled plastic are being explored, including trialling chemical recycling

Australia's major supermarkets have started sending samples of soft plastics overseas to be recycled, as they deal with the legacy of thousands of tonnes of stockpiled plastics from the collapsed REDcycle scheme.

Coles and Woolworths took responsibility for the stockpiles of plastics in February, after REDcycle went into liquidation, owing creditors about $5 million, including fees for storing massive stockpiles in warehouses across several Australian states.

Victoria's environmental watchdog charged REDcycle in December, alleging the company secretly stockpiled 3,000 tonnes of soft plastics across nine sites.

The supermarkets say they subsequently found 11,000 tonnes of plastics over 44 sites, including those disclosed by REDcycle and the regulators, as well as through their own investigations.

In the meantime, most Australians have been left without a way to recycle the 70 billion pieces of soft plastics consumed every year, as the supermarkets work out a way to deal with the stockpiles, and start a new soft plastics collection scheme.

The inside of a warehouse with rows and stacks of soft plastic bundles.

Coles and Woolworths say they are trying to find ways to recycle the stockpiled plastic. (ABC News: Margaret Paul)

Over the past five months, the supermarkets have consolidated the stockpiles to 18 sites, at a cost of about $3 million.

A spokesperson for Coles and Woolworths said about 4 per cent of the plastics had degraded so much they could not be recycled.

"We're currently exploring a wide range of options to recycle the stockpile, navigating changing timelines from different Australian processors who are developing new soft-plastic recycling facilities," they said.

The problem is, there is not enough capacity in Australia to recycle 11,000 tonnes of soft plastics, let alone restart a collection scheme to replace REDcycle.

Investigating offshore options

The supermarkets said about 120 tonnes of the stockpiles had been processed by domestic companies, including into building materials and concrete additives.

In order to deal with the scale, the supermarkets have started sending samples to Germany, and to a company in the US state of Texas, to trial advanced chemical recycling.

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