Increasing Aluminum Can Recycling Rates in Tennessee Recycling

Increasing Aluminum Can Recycling Rates in Tennessee Recycling in Tennessee: SERDC Workshops; August 13 -15, 2012 1

Alcoa at a Glance Leading aluminum products company § Primary aluminum and alumina § Flat-rolled aluminum and hard-alloy extrusions Active in all major segments of the industry: § Technology § Mining § Smelting § Fabricating § Refining § Recycling Products serving the aerospace, automotive, commercial transportation, packaging, building and construction, and industrial markets. 2

Tennessee is home to a diverse set of Alcoa businesses §Tennessee Operations, Alcoa: Largest recycling and can sheet production facility in the world §Knoxville Office: HQ to our global primary products, energy and metal trading businesses • 1, 650 active employees • 4 operating locations • Packaging, Aerospace, Primary Products , and Recycling §Howmet Castings, Morristown: Investment casting for aerospace markets Howmet, Morristown §Evermore Recycling, Nashville: Soon to be wholly owned by Alcoa on August 31. Tennessee Operations APP HQ, Alcoa Energy, Knoxville Evermore Recycling, Nashville 3

Background: Global Recycling Rates Malta Latvia Romania + Bulgaria Greece Lithuania Portugal Hungary Ireland Slovenia France United Kingdom Italy USA Spain Estonia Poland Quebec (Canada) Cyprus Turkey Austria Netherlands Denmark Switzerland Sweden Argentina Norway / Iceland Japan Benelux Finland Germany Brazil China Source: IAI 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 4

What is the problem? Total Global Market – ~196 billion 41 billion trashed 40, 7 U. S. : 97 billion Cans Recycled ROW: 99 billion 56, 2 Cans Trashed Half the world’s cans are consumed in the U. S. , yet 42% of them are still going into the waste system In the U. S. , we have the largest market for these cans, but one of the lowest recycling rates among developed countries. The result? About 1. 3 billion lbs or 575 KMT of metal with ~69% recycled a strong market is being buried in U. S. landfills § § Sources: Aluminum Association, CMI, IAI, Alcoa Estimates Equivalent of 2 smelters are buried in U. S. landfills Equivalent of >27, 000 Airbus A 320 s… 5

What is the problem? Total Global Market – ~196 billion 41 billion trashed 40, 7 U. S. : 97 billion Cans Recycled 56, 2 Cans Trashed About 47 million pounds of cans are ROW: trashed 99 billion in Tennessee ~69% recycled each year – Equal to a fleet of 1000 jet airplanes, and worth between $25 -30 mm Sources: Aluminum Association, CMI, IAI, Alcoa Estimates Half the world’s cans are consumed in the U. S. , yet 42% of them are still going into the waste system In the U. S. , we have the largest market for these cans, but one of the lowest recycling rates among developed countries. The result? About 1. 3 billion lbs or 575 KMT of metal with a strong market is being buried in U. S. landfills § § Equivalent of 2 smelters are buried in U. S. landfills Equivalent of >27, 000 Airbus A 320 s… 6

What Can We Accomplish? Alcoa’s Goal: Raise US recycling rate to 75% by 2015 Source: IAI 7

Why is This So Critical? Aluminum can be recycled economically an infinite number of times, which makes it a manufactured natural resource. We save 95% of energy needed to make aluminum from raw ore when we use recycled aluminum. Aluminum cans are not trash – they are by far the highest value component in the waste stream. Increasing the U. S. aluminum can recycling rate to 75 percent would save enough energy to replace a 354 mega-watt coalfired power plant. Put in perspective, that’s enough energy savings to power all the homes in Memphis each year. Recycling means jobs in Tennessee. Alcoa’s Tennessee Operations is the largest recycling facility in the world, and we depend on recycled cans. Yet, while Tennessee is among the top 15 non-deposit states in terms of can consumption, the recycling rate in Tennessee is among the lowest in the nation. Source: IAI 8

The Geographically Close Aluminum Industry is Short of Cans Source: SERDC 9

Under Utilized Capacity in Tennessee 50% capacity expansion completed at Tennessee Operations in 2009 140, 000 pounds of recycled cans per hour Lack of recycled cans forcing the use of more expensive materials such as prime ingot The capacity is there…we just need more recycled cans! Source: IAI 10

What can be done to create step change improvement? Industry Collaboration § Action to Accelerate Recycling – a voluntary stewardship initiative kicked off by Alcoa Outreach and Education § “Social Shift” college campus campaign – Keep America Beautiful § Curbside Value Partnership (http: //www. cvpconnect. org) – aluminum industry program to drive local community recycling § SERDC § Alcoa Foundation Grants to communities, recycling groups Policy – Policy § Must drive change to provide necessary incentive 11

What can be done? Policy support is imperative § Disposal bans § Mandated or incentives for recycling § Pay as you throw

www. Alcoa. Recycling. com

A Great Opportunity… “I was seldom able to see an opportunity until it had ceased to be one. ” – Mark Twain

Thank you! Chris. moore@alcoa. com www. Alcoa. Recycling. com 15