Mr. Chairman and honourable members, thanks for the opportunity to talk with you today from Cleveland. I'm here for the Plastics Recycling World Expo that happens to be here this week, so unfortunately, I wasn't able to there in Ottawa to present to you directly.
By way of background, I've spent the last 25 years of my career in the beverage manufacturing and recycling industries as a brand owner, a plastics reprocessor, and a secondary user of waste plastics in a new and emerging chemical company called GreenMantra Technologies, where I am currently the vice-president of operations.
GreenMantra, for those who don't know about us, is an early-stage growth company that has developed a proprietary technology called catalytic depolymerization that uses heat and a catalyst to convert long-chain plastics, which were talked about just a minute ago, into shorter segments at a molecular level.
Our technology has been categorized by many as chemical recycling, although we differ substantially from other technologies such as pyrolysis, which you may have heard of before.
Our process is more gentle and surgical. It uses no chemicals, water, or other additives to convert the plastic into a synthetic wax. We are now replacing traditional petroleum waxes in the market. Unlike other chemical recycling processes you may know of, we yield between 90% and 95% of the plastic into the final wax, and none of our by-products go to landfill. Unlike many of the processes like pyrolysis or gasification that may have char or other emissions, nothing goes to landfill from our process.
Synthetic waxes, for those of you who don't know much about them, have historically been used and produced by the largest chemical companies in the world—Dow, DuPont, and BASF, to name a few. They are the base ingredients in a lot of the materials that we use every day in construction, such as paints, coatings, laminated lumber, cabling and many other applications.
Our new disruptive technology is making synthetic wax additives that are used in a variety of different industries such as the manufacturing of asphalt roofing products, asphalt roads, and plastics processing and compounding. GreenMantra currently sources millions of pounds a year of post-consumer recycled plastics, mostly high-density polyethylene, number two plastics, number four polyethylene films, and number five polypropylene tubs and lids.
Recently our technology and engineering group has created a great technology that is now able to convert number six polystyrene foam into a new and unique polymer that is used in inks, coatings and in the foam industry. As a result, we will be starting a new process later on this year to expand the collection and use of post-consumer polystyrene such as you find in electronics packaging and foam cups.
Due to a shortage of materials in Canada, we source materials across North America. There aren't enough materials available for sale in Canada currently. We do not process bales at our facility. We work symbiotically with the mechanical recycling industry. I came from that industry and I know the important role that they play in the entire process. Mechanical recycling and chemical recycling work closely together and are necessary for the broader adoption of recycled plastics in our economy.
GreenMantra's first commercial plant began operations in 2012 in Brantford, Ontario. We employ over 40 fantastic people who work in well-paying sustainable engineering and technology jobs. We operate our plant 24 hours a day, seven days a week, and we're in the process of doubling our capacity in Brantford to meet the ongoing needs for our product.
Our customers typically have been from the U.S. market. They understand the value proposition that we bring to their businesses and are much more aggressive in trying to capture the benefits of sustainability and cost savings. Unfortunately, the adoption of our technology has been less enthusiastic in Canada, and I sense that Canadian producers are much more risk averse than their competitors south of the border.
Over my time in the industry as a plastics reprocessor, I have had a few thoughts I'd like to share with the committee about how we can improve plastics recycling in general in Canada.
First of all, plastics are a wonderful material. They are valuable. They preserve the life of food on our shelves. They bring us advanced medicine. They are truly not the enemy. Wasteful human behaviour and inadequate collection and recycling systems are at the root of the pollution problem.
Second, any material to be recycled must have market value. Higher market value results in higher rates of collection and higher rates of reuse. The equation is very, very simple. Value can be created either artificially with deposit schemes or you can create it by increasing demand.
In Ontario, a very good example is the Beer Store. I worked in one of the large breweries for over a decade. Its reuse of materials—over 96% of materials are used a second time—is a model we should be looking at to increase the collection and reuse of our packaging materials.
Third, simplicity in the plastics formulation is key to using materials a second time. Complex constructions such as multi-layer plastics and films are more difficult to recycle. Additives and fillers, especially those compostable additives and calcium carbonate, make those plastics more difficult to be used a second time.
Fourth, landfilling is way too cheap in Canada. If we had more expensive landfill costs in Canada, economies would emerge to reuse more plastics.
Last but not least, the solution to the plastics problem will require co-operation from all elements of the supply chain.
At GreenMantra Technologies, there are three elements that will drive the economics and growth of economics in recycling.
First, the federal government could significantly increase the use of recycled plastics by establishing minimum use standards for goods offered for sale in Canada. We don't have to start at 100%, but starting at 50% would lead to a dramatic increase in the amount of plastic consumed and recycled in Canada.
Second, the federal government has exclusive powers to immediately expand the minimal recycled content in the goods and services that they purchase.
Last, there's a great opportunity for the federal government to lead harmonization of policy and help the CCME in forging a new consensus amongst themselves so we can find a way forward and re-establish a new norm for recycling in Canada.
Thanks again for the opportunity. I'll take questions.