Pratt commits $1B to expand recycling

Anthony Pratt wants people in the U.S. to recycle more paper, and he's putting up $1 billion of his company's money to make that happen over the next 10 years.

Pratt Industries, the world's largest privately-owned manufacturer of paper and packaging materials, is the U.S. division of the Pratt family's Visy Industries, based in Melbourne, Australia.

Pratt says he plans to build at least three new recycled paper mills, four waste to energy plants, and 30 materials recovery facilities, as well as ancillary packaging plants to fully integrate the paper mills.

"Recycling is an important weapon against climate change. We envision the U.S. moving toward a zero waste society and seek to increase U.S. recycling rates dramatically by investing this $1 billion to expand our recycling operations, and by helping to create a recycling movement," he said in a statement.

Pratt said the plan would double the company's recycling operations to 6,000 people, up from 3,000, in the U.S.

Pratt made the commitment at the Clinton Global Initiative in New York, a yearly philanthropic conference founded by former President Bill Clinton to bring together world leaders to work on solutions to problems in education, energy and climate change, global health, and poverty alleviation.

Three energy companies also made commitments at the initiative, pledging up to $4.5 billion to build more solar thermal plants in the States (see the Cleantech Group's Ausra, FPL, PG&E heat up solar thermal).

Pratt currently has two recycled paper mills, on Staten Island in New York and in Conyers, Ga., where Pratt Industries is based.

In the Big Apple, the company touts that it uses New York's waterways to barge half of its annual 360,000 tons of collected waste paper to the site, "cutting down on atmospheric and noise pollution, road congestion and wear and tear on the city's already over used road system."

Take a look at a paper-laden barge in New York here >>

The company's third recycled paper mill is set to open later this year in Shreveport, La., with two more on the way. The Louisiana mill will account for $150 million of Pratt's total committed cash.

The company, which also has plants in Australia and Mexico, recycles over 720,000 tons of waste paper and corrugated cardboard per year in the States.

Pratt's recycled paper mills use only cornstarch and water in the manufacturing process, according to the company, unlike kraft mills which use sodium hydroxide and sodium sulfide.

"Almost one quarter of all carbon emissions are from landfills and deforestation so every ton of paper we divert from landfill stops 1.2 tons of carbon emission," said Pratt.

Pratt said there's plenty of room for growth in the U.S., where he said the recycling rate for Pratt paper products is about 55 percent, compared with 65 percent in Australia and 75 percent in Japan and Germany.

At full capacity, the company said its new Louisiana mill will recycle over 300,000 tons of paper per year, which it said would avoid more than 300,000 tons of carbon dioxide equivalent.

The company said it expects its investment to account for the avoidance of over 1 million tons per year by the end of the 10 year commitment.

Pratt isn't just building more mills; it plans to put up four waste to energy plants to power some of those mills.

The company's first waste to energy plant will convert wood waste, otherwise destined for a landfill, into energy for the company's recycled paper mill in Conyers.

Construction is expected to start later this year, with wood-powered energy to start flowing by March 2009. That plant, which the company said will save over 75,000 tons of carbon dioxide per year, is to cost Pratt $50 million.

Pratt hasn't announced locations for its other planned recycled paper mills or energy to waste plants.

The company's next materials recovery facility will start to go up in Dallas later this year. That project, scheduled to be up and running by February 2008, is valued at $3 million.

While the bulk of the money is going into a brick and mortar expansion, Pratt is also going after the hearts and minds of the American consumer.

The company, which said it's open to suggestions on the creation of what it calls a "recycling movement," has pegged $100,000 for a magazine recycling program with Time Magazine and other partners.

Pratt also plans to put up another $100,000 for a public campaign to promote paper recycling with the New York City Department of Sanitation.

More cash is expected to go toward a schools program in parts of New York and Georgia, as well as for creating public service videos.

The company said it recently created a video with former Vice President Al Gore to promote recycling that highlighted the day in the life of a recycled pizza box.

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