Why Invest in a LED Lamp Recycling System?
Why Invest in a LED Lamp Recycling System?
Investment in new lamp recycling
equipment has to be considered carefully
With LED lamps & bulbs appearing in the recycling waste stream already, they still only account for 5-10 % of the lamps recycled.
This figure will rapidly increase in the coming years.
The next step to keep your lamp recycling business viable
LED lamps & bulbs are coming through the recycling waste stream, but they still only account for 5-10% of the lamps recycled. However, considering that the penetration rate of LEDs into the global market has risen year-on-year since 2012, this percentage is expected to begin rapidly increasing as earlier generations of LED lamps begin to reach the end of their lifecycle.
Lamp recyclers must now consider the next step in order to keep their lamp recycling business viable.
There are three scenarios to consider and as each lamp recycler is different, the options are not a one size fits all matter. The major consideration is that traditional lamp & bulb feedstock for recycling is reducing as LEDs take over.
As the UK’s largest lamp recycler Balcan has considered the three main options below:
Option 1
Send LEDs to 3rd Party for processing. This scenario works if the price you charge is high enough to allow you to act as an intermediate. Charge client X, Pay 3rd party processor Y.
As long as X-Y > 0 it returns a potential profit (dependent on overheads). With earlier LEDs having a high aluminium content the 3rd party will remain interested as they are also able to get a return of this.
Risk to this scenario is when Aluminium content drops and 3rd party increases price or declines to process, leaving X-Y as a negative figure or product they are unable to process.
Option 2
Accept traditional feedstock will reduce & accept business will decrease. Try to incorporate scenario 1 as long as possible in the hope X-Y remains a positive value.
This scenario potentially applies to smaller processors who are unable or cannot justify investment, or who may be happy to retire from this type of business.
Option 3
Invest in LED recycling technology and benefit from the following:
- Process LED in house avoiding the Y cost above.
- Recover more costs from higher value ferrous and non-ferrous fractions
- Charge others to recycle LED
- Process shattershield lamps (plastic coated)
- Process electronics and small mixed WEEE
- Post process lamp bases and end caps from traditional feedstock for higher value fractions (HVF).
- Become first to market & shorten payback time benefitting from earlier LED generations having higher aluminium content.
- Be ahead of the competition.