Newsworthy

Metals

Real Alloy, Golden Aluminum among DOE grant awardees

Among the recent U.S. Department of Energy (DOE) decarbonization-related grants announced, two are going toward projects planned by existing recycled-content aluminum producers.

Cleveland-based Real Alloy Recycling could receive up to $67.3 million for a project at its Wabash, Indiana, facility it calls “Zero Waste Advanced Aluminum Recycling.” That project is geared toward recycling salt slag, a melt shop byproduct.

Another $22.3 million could go to Fort Lupton, Colorado-based Golden Aluminum for its “Nexcast—Next Generation Aluminum Mini Mill” project in Fort Lupton.

The two projects aimed at decarbonizing and boosting U.S. aluminum production go along with those planned by Century Aluminum at an as-yet unselected location and Owl’s Head Alloys in Mississippi as capacity expansion and protection projects selected by the DOE.

According to the project synopsis, Golden Aluminum plans to upgrade its Fort Lupton facility using the Nexcast process to reduce natural gas consumption, improve process efficiency and recycle 15 percent more mixed-grade aluminum scrap.

Although Golden Aluminum has its roots in making cansheet for beverage can production, the upgrades would allow the facility to produce aluminum products for electric vehicles and other clean energy technology applications.

The DOE says the project would be highly replicable among other U.S. aluminum producers and could help solidify the U.S. as a leader in decarbonized secondary aluminum production.

Although the DOE writeup does not mention Germany-based SMS Group by name, the metals production technology company markets its Nexcast equipment as “the next generation minimill” thanks to its ability to allow the casting and rolling of aluminum strips in one continuous production process.

“The new Nexcast minimill produces strips of all kinds of aluminum and aluminum alloys, with sufficient surface quality for most applications, good to very good thickness, profile and flatness tolerances and [a] very stable final rolling temperature over the strip body length,” according to SMS.

As part of the Golden Aluminum project, the company will train existing Fort Lupton employees on the new technology. Additionally, the project is expected to improve air quality, and Nexcast technology uses about 85 percent less water compared with existing direct chill technology. The DOE says the latter feature is “critical” in the increasingly arid western U.S.

In Indiana, the Real Alloy Recycling project might not increase the amount of scrap purchased in Wabash, but it likely indicates a commitment to keep the facility viable.

As part of the project, Real Alloy Recycling plans to build a processing plant on the back end of an existing secondary aluminum production facility and enable the normally landfilled salt slag components to be recycled back into the aluminum recycling process or beneficially used in other industries, such as cement.

The company says the project could create nine new jobs while also securing the existing 33 jobs at the Real Alloy Recycling facility in Wabash.

Municipal/IC&I

CAA submits EPR plan in Oregon

Circular Action Alliance (CAA), the producer responsibility organization (PRO) approved to implement extended producer responsibility (EPR) laws for paper and packaging in California and Colorado, submitted its initial program plan to the Oregon Department of Environmental Quality (DEQ) in April.

The plan outlines how CAA intends to administer Oregon’s EPR program for packaging, paper products and food service ware—the Plastic Pollution Recycling Modernization Act (RMA).

In its initial program plan, CAA outlines an approach to implementing the RMA that builds on the existing system by upgrading facilities and improving public participation, understanding and equity throughout the state’s recycling system. With this approach, CAA seeks to increase diversion of recyclables from disposal and reduce the negative environmental, social and health impacts from end-of-life management of products and packaging.

Last year, CAA says it demonstrated exceeding the 10 percent market share threshold for covered products required by the RMA to operate as a PRO in Oregon and was the single PRO to submit a program plan in the state.

The initial plan will undergo review and consultation with the Oregon Recycling System Advisory Council and other stakeholder groups. DEQ will present feedback and requested revisions by July 31, and CAA will submit an updated version in September.

Oregon will be the first state to implement an EPR program for paper and packaging when it is operational in July 2025.

CAA also is initiating a system optimization project that will build on a survey commissioned by Oregon DEQ to understand local government requests for additional recycling infrastructure and services. The group will gather information about the current system to identify gaps and necessary investments and create a schedule for efficient investment through 2027.

Metals, Mergers & Acquisitions

Fenix Parts adds Midwest locations; expands to California

Fenix Parent LLC, operating as Fenix Parts, based in Hurst Texas, has completed the acquisition of the assets of Neal Auto Parts in Peoria, Illinois.

Marking Fenix’s eighth acquisition in the Midwest, Neal is an automotive recycler servicing central Illinois, which has a population of roughly 1.3 million. The purchase brings Fenix Parts to 27 full-service and five self-service locations.

“We are pleased to announce the acquisition of Neal and excited about the addition of its experienced and talented team to the Fenix family,” Fenix CEO Bill Stevens says. “This acquisition continues our Midwest footprint expansion westward with close proximity to both our Chicago location and our new Indianapolis hub and allows us the opportunity to leverage our 85-plus acres of Midwest full-service production capacity.”

Neal has been in the auto recycling business for almost 75 years.

Also in April, Fenix announced its expansion into California with the purchase of Green Auto Parts & Recycling in Sun Valley, California, a full-service automotive recycler servicing the Los Angeles market.

Edgar Akopyan will join Fenix Parts as director of business development, Southern California.

Stevens adds he is happy to have Akopyan as part of the Fenix Parts’ team in Southern California. “Edgar has deep, established commercial relationships, and he will be leading our growth in this region,” he says.

“This acquisition establishes Fenix’s footprint on the West Coast,” Stevens continues. “The LA market has one of the largest [metropolitan statistical areas] and highest vehicles per household in the U.S. We expect to expand our West Coast geographic reach with additional acquisitions, increasing both full-service production capacity and customer delivery networks.”

Fenix Parts recycles and resells original equipment manufacturer automotive products and was acquired in April 2018 by affiliates of New York-based Stellex Capital Management LLC. The company has locations in the Northeast, Southeast, Southwest, Midwest and Southern California, with Fenix companies having been in business for more than 25 years on average.