eLoop Violates CRT Regulations
Last year, eLoop experienced a breach of CRT accumulation regulations, due to the economic downturn caused by the pandemic, and the closure of a CRT outlet. The company’s CEO, Ned Eldridge, states that efforts are underway to resolve the situation which involves following a plan developed in collaboration with regulators. Eldridge has also disclosed to E-Scrap News, that eLoop has already reduced its stockpiles by over 50 percent.
To comply with the EPA’s CRT rule, any stockpiling of cathode ray tube (CRT) materials is a form of speculative accumulation, unless at least 75 percent of that inventory has been recycled within the course of one year. This rule even sidesteps hazardous waste guidelines, if specific requirements are met.
As a result of a complaint received in October of 2022, the Pennsylvania Department of Environmental Protection (DEP) investigated eLoop’s State College facility and discovered an excess amount exceeding the permit limit, more than 3 million pounds, in stored CRT materials alongside abandoned TVs.
E Scrap News brought forward the inspection findings from the report, which revealed that eLoop was short of meeting state general operating permit criteria, with only 413,000 pounds dispatched since January of last year.
In response, the DEP issued a notice of violation but refrained from imposing any financial penalties.
Downstream Issues
Even though CRTs are becoming less and less common, there remains a serious problem within the industry. The lack of suitable outlets for lead-bearing glass has proven to be a problem as proper disposal outlets become increasingly more difficult to find.
Recent years have additionally seen the closure of CRT processing facilities in several countries, such as India, Mexico, Spain, the Netherlands, Canada and the U.S., further compounding the issue. However, despite this trend, some North American entities are still processing CRT glass, and continue to provide services to smelters and ceramic tile manufacturers, among other industries.
Novotec Stops Processing CRTs
For example, Eldridge highlighted how the closing of Novotec Recycling’s CRT glass processing capabilities affected eLoop. The Columbus, Ohio-based company was previously able to convert CRTs into usable material for smelters. Yet, following its contract to clean up Closed Loop Refining and Recovery’s abandoned piles of CRT materials, it became apparent that Novotec was no longer offering CRT processing services.
It turns out that as a reaction to the considerable losses caused by the COVID-19 pandemic, Novotec made the decision to suspended its acceptance of CRTs. This was because of an inevitable drop in business and a setback in eLoop’s cash flow. According to Eldridge, there was an obvious decrease from 2020 to 2021 with 71 percent and 67 percent of CRT materials shipped out, respectively. But, 2022 saw an upswing of around one million pounds shipped downstream.
eLoop’s Partnerships and Recognitions
According to Eldridge, eLoop and the Department of Environmental Protection (DEP) have a cooperative relationship. The firm has aided DEP in gaining approval for its flat-panel dismantling robot and have also shared the company’s CRT mass balance data with the DEP, even before the complaint and inspection took place.
In other news, this year, the Reverse Logistics Group has included eLoop as one of its recycling vendors within its 2023 program plan. This affiliation recognizes eLoop’s significant contributions to big names such as Acer, Apple, Lenovo and Microsoft who rely on eLoop’s services for efficient e-scrap collection and recycling management.
“eLoop is one of multiple recyclers we are working with in Pennsylvania and they make up a small fraction of the total volume of covered devices managed by our group plan,” The director of compliance services for Reverse Logistics Group, Andriana Kontovrakis, stated. “We are aware of the notice of violation and are in active communication with eLoop regarding the matter. We are currently awaiting the results of the negotiations on the consent order between eLoop and the PADEP.”
eLoop Reduces CRT Stock
Eldridge indicated that his business is seeing a resurgence, and has improved over the past couple of years. “We’re back financially,” he said. Also, this month marks the resumption of downstream shipments of CRTs from eLoop to Dynamic Lifecycle Innovations, Kuusakoski, and GKAT Reclamation, located in Des Moines, Iowa.
In the past four years, eLoop has managed to reduce its stock of CRTs from a peak of 5 million pounds in 2016, by half. According to Eldridge, this marked a transformation not only in how it handled such materials, but also redirected its primary focus as an organization.
Though eLoop used to handle CRT TV disassembly, it has since changed its practices and is now sending materials to Dynamic and Kuusakoski instead. This shift occurred when China stopped accepting e-plastics, which caused a ripple effect that tightened up the plastics market. Consequently, the company elected not to continue with its previous operations.
eLoop is an e-Stewards certified processor, and has also cut back its involvement in the state Extended Producer Responsibility (EPR) program, attributable to poor compensation from OEMs. Its current partner, the Reverse Logistics Group, has been “fair and equitable,” however, working with other OEMs in past years did pan out. Despite eLoop’s optimistic projections of increased payment for CRT recycling services, as market conditions shifted, many OEMs ultimately failed to honor their original financial commitments.
Shifting to an ITAD Focus
Because of this, eLoop has shifted its focus from residential electronics recycling to its ITAD business. In the last three years, around 70% of its enterprise has been derived from this sector alone. However, Eldridge mentions the company is, “seeing a decrease in the amount of CRT material that’s coming through and we’re seeing an increase in the amount of flatpanels.”
eLoop is also excitedly awaiting its newest endeavor at its State College facility, a pioneering deployment of the FPD Pro robot is close to being operational. This innovative piece of equipment has been designed to remove dangerous materials from flat-panel display devices, making it unique as the first U.S. e-scrap plant to possess this technology.
Regarding CRTs, Eldridge mentioned that eLoop will have to be meticulous in making sure it is able to handle material over the next two-and-a-half years, but he was adamant that the company was still reputable and they’re “not going to go out of business.”
“I have no doubt we’re going to be able to succeed,” he concluded.
