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Alupro calls for changes to PRN system

Metal recycling organisation Alupro has called for an “overhaul” of how PRNs are issued, following a shortfall in the amount of aluminium packaging recovered in the first quarter of 2015.

Alupro, which represents aluminium packaging producers, claims that delays in the accreditation process means that a large amount of aluminium recovered from incinerator bottom ash (IBA) has been underreported in the provisional data.

Aluminium reprocessors have been put off by the "complexity" of the PRN system, Alupro claims
Aluminium reprocessors have been put off by the “complexity” of the PRN system, Alupro claims

The interim figures, which were published by the Environment Agency yesterday (April 22), show that 14,871 tonnes of aluminium was accepted or exported between January and March 2015 – below the estimated 18,000 tonne quarterly obligation that producers needed to be on course to meet the 2015 target(see letsrecycle.com story).

Some industry experts blamed the shortfall on the removal of protocols for aluminium PRNs, such as mixed alloy cuttings, old rolled and old alloys. This follows research suggesting that the actual aluminium packaging content in the material is negligible.

The Environment Agency has instead introduced packaging recovery notes on aluminium recovered from IBA, though just 425 tonnes were extracted from the material in Q1 according to the data.

IBA

However, Alupro argues that the tonnages recorded for IBA are “significantly below” the actual figure, with a number of “key players” waiting to receive notice from the Agency that they can issue PRNs on the material.

The organisation suggested the problem is compounded by a number of reprocessors and exporters choosing not to reapply for accreditation “due to the complexity of the [PRN] system and the accreditation process itself”.

Rick Hindley has called on the Environment Agency to change the accreditation process for issuing PRNs
Rick Hindley has called on the Environment Agency to change the accreditation process for issuing PRNs

In response, Alupro has suggested changes to the PRN system which include making accreditation part of the Environmental Permitting regime, and recognising the 14001 international environmental standard in the application process to avoid duplication of administrative procedure.

Rick Hindley, executive director of Alupro, said: “Unless and until these changes are implemented we will continue to be at risk of volatile PRN prices and obligated companies will face significantly higher PRN costs when, in reality, more than enough aluminium packaging is being actually being recycled to meet the targets.

“Alupro’s proposed changes to the system would be of benefit to all materials but are more significant for aluminium, as the PRN price is minimal compared to the high traded price of used aluminium packaging.”

Rules

However, an industry source suggested to letsrecycle.com that the rules surrounding accreditation of aluminium producers are “no different” to those applied to every other processor.

They added: “While some of the rules put down by the Environment Agency are perhaps more onerous than they should be, in this instance it is hard to see why companies who knew these changes were coming have not been able to be accredited.”

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