Defra makes further aluminium allowances

Last week (August 21) changes were made to the rules governing the date of accreditation and issuing of aluminium PRNs. Now, three more changes have been made to aluminium PRN rules.

The first is that Defra will recognise a minimum of 70% of mixed non-ferrous metals recovered from incinerator bottom ash (IBA) as aluminium packaging, including drinks cans, foils and aerosols.

The increase – up from 50% – follows studies of tested samples and discussions with metal processors since the introduction of the IBA protocol in January 2015.

Secondly, a new protocol is being introduced based on the aluminium fraction recovered from the mixed non-ferrous metals.

Until now, some metal processors have been applying the original 50% figure to the recovered aluminium fraction, instead of the actual recovered aluminium packaging fraction. According to aluminium recycling trade body Alupro, this means that packaging recovery has been underreported.

Exporters or UK recyclers of aluminium recovered from IBA mixed non-ferrous metals will be able to issue packaging recovery notes and packaging export recovery notes (PRNs/PERNs) based on 87.5% of the total recovered aluminium fraction.

Fragmentation

And thirdly, another protocol has been introduced recognising that aluminium packaging is present in “fragged” non-ferrous metals recovered from IBA. This is material that is sold to UK metal processors and mixed with metals from other sources before being processed through a fragmentation plant.

This means that it is not possible to separately weigh the IBA material before export as it has been mixed with other non-ferrous metals from various sources.

In these situations, metal processors are now permitted to issue a PERN on the incoming weight to the fragmentation plant based on the revised 70% protocol figure for IBA mixed non-ferrous metals.

The protocol changes, which are being applied retrospectively from 1 January 2015, follow Defra’s announcement last week that operators can now issue aluminium PRNs and PERNs from the date they apply for accreditation rather than the date it is approved (see letsrecycle.com story).

All the changes follow what has so far been a difficult year for aluminium PRNs with provisional data for the first two quarters showing a perceived shortfall in the amount of aluminium packaging recycled. As of the end of August, the PRN price has risen to £35-£45 per tonne.

The IBA protocol, which replaced aluminium scrap protocols this year, was intended to supply around 12,000 tonnes of aluminium packaging this year. However, the quarterly data has shown the sector is so far falling short on evidence.

Alupro

Commenting on the protocol changes, Alupro said: “The tonnage reported for aluminium packaging recovered from IBA is significantly below the level we know has been recycled or exported. Revisions to the aluminium protocols are part of Alupro’s on-going strategy to ensure recycling performance data is robust and that accurately reflects the industry’s efforts to meet national recycling targets.”

Valpak

Valpak’s director of sales and marketing Duncan Simpson said he welcomed the further concessions on aluminium.

He said: “I welcome what the government has done. I think they are recognising the price of aluminium evidence has almost doubled since the beginning of April. This is down to an administrative issue and not a process issue.”