The convenience model: TOMRA

The convenience model: TOMRA

Markus Fraval, TOMRA Collections Strategy Director, highlights competing Container deposit scheme models and Return and Earn’s success.

When the Tasmanian Government announced it would implement a container deposit scheme (CDS) by 2023, it became the seventh state or territory to do so, leaving Victoria as the single holdout.

The CDS waste collection model is similarly growing overseas, with widespread uptake in North America and Europe. While all CDSs share a common goal, there are multiple implementation models including return to retail, convenience kiosks and large-scale drop-off depots.

Markus Fraval, TOMRA Collections Strategy Director, says most European CDSs operate under a return to retail system. He says this is generally supported by government regulated extended producer responsibility legislation.

“Businesses that sell drink containers are obligated to take the container back in some way, and because it’s so easy, those markets typically achieve 90-per-cent-plus return rates,” he says.

“We commonly employ South Australian style models in Australia, whereby people are required to go out of their way, generally to an industrial area, to return their containers.”

According to Markus, depot models require significant time and organisational commitment from consumers and, as such, are often ineffective. He adds that in lieu of return-to-retail legislation, conveniently positioned reverse vending machine kiosks are a more effective model for Australia.

Markus says despite New South Wales not having the benefit of a return to retail network, the Return and Earn system was designed to be as similar to the European model as possible.

He says this was achieved by positioning reverse vending machine kiosks in shopping centres and supermarket carparks throughout
the state.

“Accessible kiosks allow consumers to participate in the scheme as part of their normal routines and daily habits,” Markus says.

“This provides incentives for positive consumer behavioural change that are not too extreme or inconvenient.”

TOMRA, in a joint venture partnership with Cleanaway, was appointed Return and Earn network operators by the New South Wales Government in 2017.

The role incorporates network design, establishing new drop-off facilities and maintaining the
state’s more than 600 existing collection points.

“We know from our experience in over 40 global deposit markets that the big drivers for successful return rates are deposit value or financial incentive, and the level of returning convenience,” Markus says.

He suggests TOMRA’s focus on convenience and access is the reason that in just under two years, 55 per cent of New South Wales residents have participated in the scheme and return rates have been high.

Since commencing on 1 December 2017, Return and Earn has collected more than two billion containers through a combination of TOMRA kiosks and more traditional depot collection points.

“The first billion containers were collected in the first 12 months of the program, with the next billion collected in the following seven months. This suggests the scheme is still accelerating,” Markus says.

“Return and Earn is now averaging well above four million containers per day.”

While reverse vending machine kiosks represent only half of the total collection points in New South Wales, Markus says approximately 80 per cent of all returns come through TOMRA reverse vending machines.

“It is critical for a successful CDS to have a network of small footprint collection points capable of high capacity collections,” he says.

“It’s also important to facilitate an integrated supply chain that spans collections, logistics and processing.”

Markus says while collection quantity is key, CDSs need to operate as efficiently as possible to keep price impacts at a minimum.

“As network operators, TOMRA Cleanaway has processed well over 100,000 tonnes of material for commodity trading in domestic and international markets,” Markus says.

“For instance, we ship bales of aluminium cans overseas for smelting and remanufacturing into sheet metal, which can then be used to produce new beverage containers.”

Additionally, Markus says roughly half the plastic sold by TOMRA Cleanaway is used for domestic bottle-to-bottle manufacturing, with the remaining half exported oversees to make bottles, textiles and plastic films.

TOMRA’s optical sorting and reverse vending machine technology is available to all operators across the CDS spectrum.

“Our technology scans bottles from 360 degrees, taking one gigabyte of images per second,” Markus says.

“The speed and ease of use of our machines allow TOMRA to collect more than 40 billion containers through reverse vending machines around the world each year.”

According to a recent state government survey, over 85 per cent of New South Wales residents support Return and Earn.

“There are different models out there, and while I think it’s useful for people to understand the success of CDSs more broadly, there is something to be said for the New South Wales model,” Markus says.

“It is undoubtedly the most convenient scheme in Australia.”

Related stories:

X