At face value, the business model for a materials recovery facility is simple.

MRFs take in commingled recyclables, separate them, and then sell the sorted materials to buyers who process and transform them into new products. The new products are sold to consumers, and the process begins again.

In reality, though, the MRF business is much more complex, and challenges exist at many points. Material coming in the door may be highly contaminated, new forms of packaging may appear in the material stream, or commodity values may drop suddenly. This is why Closed Loop Fund is focused on understanding what it takes to operate and sustain a successful MRF, and disseminating what we learn.

This article originally appeared in the December 2018 issue of Resource Recycling. CONTINUE READING