3RKH Good Practices

Title: Deposit-Refund Systems for PET Bottles in Taiwan

Summary of the Practice

Summary Report
Keywords: Recycling, Deposit-refund system, Extended producer
responsibility, PET bottle management
Country: Taiwan
Province: Entire regions
Area: Entire areas
Carbonization
Duration: Since 1989 of agricultural residues in Thailand
Sponsors: Producers
Actors Involved: Central Government, Private Sector, and Community
Data Resource:Jutamanee
APFED Good Practice database
Martchamadol and Animesh Dutta1
http://www.apfed.net/ki/database/gp.php
Energy Field of Study
School of Environment, Resources, and Development
August 2007
Outline of Practices/Actions:

How does it work?

Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.

Problem arose: free riders and fund management

As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management Committee.

In order to solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along with reduction of the refund value, the Recycling Fund

3RKH Good Practices www.3rkh.net -1-

1
Contact: Email: [email protected]; Tel: 66-2-5245403; Fax: 66-2-5245439
 3RKH Good Practices

Table of content
Title:Introduction.................................................................................................................
1. Deposit-Refund Systems for PET Bottles in Taiwan 1
1.1 Biomass Residues Resources in Thailand........................................................... 1
Summary
1.2 of the Utilization
Biomass Practice scenario in Thailand ........................................................... 3

2. Carbonization scenario in Thailand ............................................................................ 4

Keywords:
2.1 Recycling, Deposit-refund system, Extended producer
Raw materials...................................................................................................... 4
responsibility,
2.2 PET bottle management
Technologies ....................................................................................................... 6
Country:
2.2.1 Taiwan
Kiln ............................................................................................................. 6
Province:
2.2.2 Entire
Machineryregions
charcoal process...................................................................... 10
Area:
2.3 Entire areas
Marketing.......................................................................................................... 11
Duration:
2.3.1 Since 1989
Domestic market ....................................................................................... 11
Sponsors: Producers market .................................................................................. 12
2.3.2 International
Actors Involved:
2.3.3 FutureCentral Government, Private Sector, and Community 12
market trend...................................................................................
Data Resource: APFED Good Practice database
2.4 Barriers.............................................................................................................. 13
2.4.1 Price and cost ............................................................................................
http://www.apfed.net/ki/database/gp.php 13
2.4.2 Financial support....................................................................................... 13
2.4.3 Others........................................................................................................ 13
2.5 Recommedations and suggestions .................................................................... 13
Outline
2.6 of Practices/Actions:
Research and Development............................................................................... 14
2.7 List of Organizations; ........................................................................................ 16
2.7.1 Research centers........................................................................................ 16
How does it work?
2.7.2 Government offices................................................................................... 16
Under the deposit-refund
2.7.3 system for PET bottles, manufacturers and importers
Universities ............................................................................................... 16
pay 2.7.4
certain Plant
fees /into a fund and consumers are given a refund for returning
Industrials ...................................................................................... 16
PET bottles
2.7.5 into designated
Machine collection sites. The industry formed a foundation
Manufacturer.............................................................................. 19
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.

Problem arose: free riders and fund management

As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management Committee.

In order to solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along with reduction of the refund value, the Recycling Fund

3RKH Good Practices www.3rkh.net -1-

 3RKH Good Practices

1. Introduction
Title: Deposit-Refund Systems for PET Bottles in Taiwan

Summary
1.1 Biomassof the Practice
Residues Resources in Thailand

Thailand has been well-recognized as one of the first rank exporters of agricultural and
Keywords: Recycling, Deposit-refund system, Extended producer
food products, where biomass has been the traditional energy source, especially in rural
responsibility,
areas PET
for decades. bottletypes
Various management
of biomass are available in Thailand mostly in the form
Country: Taiwan
of nonplantation resources: (i) agricultural residues, (ii) residues from wood and furniture
Province:(iii) animal
industry, Entire regions
manure, (iii) municipal solid wastes and landfill gas, and, (iv)
Area: Entire areas
wastewater (Garivait et.al, 2006).
Duration: Since 1989
Sponsors:
The Producers
main agricultural residues are from paddy (rice husk, rice straw), sugarcane (bagasse,
Actorsand
leaves Involved: Central
trashiers), maize Government,
(corncob, stalk),Private
cassavaSector,
(stalk, and
sludgeCommunity
cake), and palm
Data Resource:
(empty fruit bunch,APFED GoodThe
shell, fiber). Practice database
annual amount of these residues is a total of 57.77
http://www.apfed.net/ki/database/gp.php
million tons (2005), and 60.82 million tons (2004) as shown in Table 1.

Table 1 Quantity of agricultural wastes by types of biomass in 2004 and 2005

Unit 106 tons
Outline of Practices/Actions:
Ground nuts

Para-rubber
sugarcane
Industrial

Soybeans

Sorghum
Oil palm

Coconut
Cassava

Cotton
Maize

Total
Rice

Year
How does it work?
Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a2.17
2005 17.09 18.82 1.34
fund4.39and 1.43
consumers
0.23
are given
0.06 1.21
a refund
0.35
for returning
10.68 57.77

PET bottles into designated collection sites. The industry formed a60.82
2004 21.02 17.03 1.43 2.55 4.42 1.86 0.24 0.08 1.31 0.35 10.53 foundation
to administer the recycling fund, which is meant to cover consumer refunds
Source: DEDE (2005)
and collection and recycling costs for the bottles. PET manufacturers and
importers were
Geographical required
distributions to four
of the paymain
intoagricultural
the recycling fund on
crops based according
the nationalto their
land
use of the year 2001 are presented in Fig. 1 and 2.
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.

Problem arose: free riders and fund management

As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management Committee.

In order to solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along with reduction of the refund value, the Recycling Fund

3RKH Good Practices www.3rkh.net -1-

Figure 1 Geographical distribution of paddy plantations (Left side) and maize plantations
(Right side) (Source: Garivait et.al, 2006)

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 3RKH Good Practices

Title: Deposit-Refund Systems for PET Bottles in Taiwan

Summary of the Practice

Keywords: Recycling, Deposit-refund system, Extended producer

responsibility, PET bottle management
Country: Taiwan
Province: Entire regions
Area: Entire areas
Duration: Since 1989
Sponsors: Producers
Actors Involved: Central Government, Private Sector, and Community
Data Resource: APFED Good Practice database
http://www.apfed.net/ki/database/gp.php

Figure 2. Geographical distribution of sugarcane plantations (Left side) and oil palm
Outline of Practices/Actions:
plantations (Right side) (Source: Garivait et.al, 2006)

Table 2 presents the estimated energy use factor and surplus availability factor from the
How doesresidue
agricultural it work?
based on Residue production ratio (RPR) and their as received calorific
Under the deposit-refund system for PET bottles, manufacturers and importers
value.
pay certain fees into a fund and consumers are given a refund for returning
PET bottles
Table 2into
RPRdesignated collection
and calorific values sites. The
of agricultural industry formed a foundation
residues
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.

Problem arose: free riders and fund management

As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management Committee.

In order to solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along with reduction of the refund value, the Recycling Fund

3RKH Good Practices www.3rkh.net -1-

Source: Sajjakulnukit, 2005.

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 3RKH Good Practices

The estimated residue available and their energy potential for the year 2010 has been
projected based on historical data of harvested land and production statistics from the center
Title:
for Deposit-Refund
agricultural Systems
information for PET Bottles in Taiwan
as follows:.

Summary
Tableof3 the Practice
Energy potential of agricultural residues

Keywords: Recycling, Deposit-refund system, Extended producer

responsibility, PET bottle management
Country: Taiwan
Province: Entire regions
Area: Entire areas
Duration: Since 1989
Sponsors: Producers
Actors Involved: Central Government, Private Sector, and Community
Data Resource: APFED Good Practice database
http://www.apfed.net/ki/database/gp.php

Outline of Practices/Actions:

How does it work?

Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling
Source: Sajjakulnukit, 2005. costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
sales.
1.2 Initially,
Biomass consumers,
Utilization scenariowho returned PET bottles to any of the more than
in Thailand
10,000 established collection locations, were paid a refund of NT$2.00
(approximately
Recently, US$0.06).
Thai government hasRecycling
enforced anplants
energy paid
policy collectors NT$0.50
to promote the use of per bottle
biomass
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
as the fuel for generating electricity through SPPs (Small Power Producers) and VSPPs
percent.
(Very Small Power Producers) program. After the policy proposed, rice husk and rice
husk mixed with other biomass-based power generation plants increased to 35 plants in
2006 with total
Problem capacity
arose: about 574
free riders andMW fund(Garivait et.al, 2006).
management
As recovery of PET bottles increased, however, payment of the refunds
SPPs and VSPPs programs were proposed in the year 1992 and 2000 respectively
resulted in a deficit in the fund. The problem was further exacerbated by free
(Garivait et.al, 2006). The main objectives of the policy on power purchase from SPPs
riders – PET packaging manufacturers not registered with or reporting to the
are;
Recycling Fund Management Committee.
(1) To promote the use of indigenous by-product energy sources and
In order nonconventional
to solve the problem energy for of fundgeneration,
power deficit, the
e.g. refund value
wind, solar, has been
geothermal,
reduced.waste
Firstandit was
waste reduced
agriculture,to
andNT$1.00 and
economical andthen further,
efficient to NT$0.50 per
use of energy,
bottle. Along with reduction of the refund value, the Recycling Fund
(2) To encourage participation of private sectors in power generation by allowing
private sectors to generate and sell electricity to the power utilities,
3RKH Good Practices www.3rkh.net -1-
(3) To promote competition in the power-generation sector by authorizing private
power producers to supply electricity directly to industries and nearby

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 3RKH Good Practices

residential customers without the need to link with any of the three utilities’
transmission systems.
Title: Deposit-Refund Systems for PET Bottles in Taiwan
Consumers are given more options on which electricity is traded after Energy Policy and
Summary
Planning of the
office Practice
(EPPO) made announcement to encourage interested investors and SPPs
using renewable energy as fuel. Then SPPs submit proposals to apply for subsidies from
The Energy Conservation Promotion Fund.
Keywords: Recycling, Deposit-refund system, Extended producer
responsibility,
In July 2006, 74PET bottle
SPPs management
which use biomass energy as fuel to generate electricity have
Country:notification
received Taiwan of acceptance with total capacity about 1,295 MW and 44 SPPs
Province:
have connectedEntire
to the regions
grid with total capacity about 839 MW. VSPPs have connected to
Area:
the grid with a Entire areasof 2.1 MW and total a sale of 1.85 MW. Table 4 and Table 5
total capacity
Duration:
show the statusSince 1989based power.
of biomass
Sponsors: Producers
ActorsTable
Involved:
4 StatusCentral Government,
of SPPs on biomass basedPrivate Sector, and
power generation plantCommunity
(July 2006)
Data Resource: APFED Good Practice database
http://www.apfed.net/ki/database/gp.php

Outline of Practices/Actions:

How does it work?

Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer
Source: EGAT 2006 the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers
Table 5were
Status required tobiomass
of VSPPs on pay into the
based recycling
power fund
generation plantaccording
(April 2006) to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.

Problem arose: free riders and fund management

As recovery of PET bottles increased, however, payment of the refunds
resulted
Source: in a 2006
EGAT deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
2. Carbonization scenario in Thailand
Recycling Fund Management Committee.
2.1 Raw materials
In order to solve the problem of fund deficit, the refund value has been
reduced.
Charcoal andFirst it was
charcoal reduced
briquetting areto NT$1.00toand
considered then
be the further,
alternative fueltoinNT$0.50
Thailand.per
bottle. Along with reduction of the refund value, the Recycling
Agriculture residues such as saw dust, Para rubber tree, fruit peel, eucalyptus bark, Fund
coconut, bamboo, mangrove and palm shell etc. are the main feedstock for charcoal
production (Source: http://www.charcoal.snmcenter.com/)
3RKH Good Practices www.3rkh.net -1-
The following pictures present the charcoal produced from different type of agriculture
residues in Thailand.

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 3RKH Good Practices

Title: Deposit-Refund Systems for PET Bottles in Taiwan

Summary of the Practice

Keywords: Recycling, Deposit-refund system, Extended producer

responsibility, PETcoconut
Figure 3. Ship bottle charcoal
management
(Left) and Coconut charcoal briquette (middle)
Country: Taiwan
Province: Entire regions
Area: Entire areas
Duration: Since 1989
Sponsors: Producers
Actors Involved: Central Government, Private Sector, and Community
Data Resource: APFED Good Practice database
http://www.apfed.net/ki/database/gp.php
Figure 4. Wood log from sawdust (left) and Sawdust Charcoal (right)

Outline of Practices/Actions:

How does it work?

Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles
Figureinto designated
5. Woodlog collection
from Rickhusk sites.
(left) andThe industry
Mangrove formed
Charcoal a foundation
(right)
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.
Figure 6. White Charcoal (left) and Bamboo Charcoal (right)
Problem arose: free riders and fund management
As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management Committee.

In order to solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along with reduction of the refund value, the Recycling Fund

3RKH Good Practices www.3rkh.net -1-

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 3RKH Good Practices

2.2 Technologies
Title: Deposit-Refund
2.2.1 Kiln Systems for PET Bottles in Taiwan
Various types of kiln are presently used in Thailand. All the kilns use the principle of hot
Summary
gas of (Source:
circulation. the Practice
http://www.charcoal.snmcenter.com/)

Keywords: Recycling, Deposit-refund system, Extended producer

responsibility, PET bottle management
Country: Taiwan
Province: Entire regions
Area: Entire areas
Duration: Since 1989
Sponsors: Producers
Actors Involved: Central Government, Private Sector, and Community
Data Resource: APFED Good Practice database
http://www.apfed.net/ki/database/gp.php

Outline of Practices/Actions:

How does it work?

Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.

Problem arose: free riders and fund management

As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund.
Figure The problem
7. Charcoal was further exacerbated by free
kiln in Thailand
(Source: http://www.charcoal.snmcenter.com/)
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management Committee.
A number of research studies were done to improve charcoal production. Thailand Institute
of Scientific and Technological Research (TISTR) and Department of Alternative Energy
In order to solve the problem of fund deficit, the refund value has been
Development and Efficiency (DEDE) have done the research on small and low cost kiln.
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
This study used a diesel tank of 200 liter which is easier for movement. The reaction time
bottle.
was aboutAlong
3-4 hr./ with
batch reduction
depending onof the the
typesrefund value,
of feedstock. the was
Cooling Recycling Fund
slowly done
by leaving it overnight. Capacity of this kiln is 130 kgs for coconut shell feedstock and
efficiency of kiln is 25% (TISTR).
3RKH Good Practices www.3rkh.net -1-

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 3RKH Good Practices

Water
Title: Deposit-Refund Systems for PET Bottles in Taiwan tube

Summary of the Practice cork

Keywords: Recycling,Front Deposit-refund Side system, Extended producer

responsibility, PET bottle management
Country: Taiwan
Province: Entire regions
Area: Entire areas
Duration: SinceCover
1989plate
Sponsors: Producers
Actors Involved: Central Government, Private
Water Sector,
tube ½”, 1 m. and Community
Data Resource: APFED Good Practice database
http://www.apfed.net/ki/database/gp.php
Figure 8 small and low cost kiln by TISTR

Outline(Source:
of Practices/Actions:
http://www.charcoal.snmcenter.com/charcoalthai/brazier1.php)

The followings are some of the kilns used in Thailand (Thaisumi Co.,Ltd, 2007) retrieve
How
on doesdate
website it work?
July 25, 2007.
Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain
2.2.1.1 Fat clayfees
kiln into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer
This is a low costthekiln.
recycling fund, which
The construction is meant
material to which
is fat clay coverisconsumer refunds
easily available.
andtype
This collection and recycling
of kiln produce good qualitycosts for the
of charcoal but bottles. PETefficiency
gives lowest manufacturers
compare toand
importers
other were
types of kiln. required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.

Problem arose: free riders and fund management

As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management
Figure 9 Fat Committee.
clay kiln (left) and Brick kiln (right)

In order
2.2.1.2 to kiln
Brick solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle.
This Along
is used with reduction
for industrial process. Theofcost
theof refund value,
this kiln is higher the Recycling
compared Fund
to fat clay
kiln. The structure composes with brick and clay. Cement is not preferred in structure
because it has the different coefficient of expansion.
3RKH Good Practices www.3rkh.net -1-

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 3RKH Good Practices

2.2.1.3 Iwatae kiln

Title: Deposit-Refund Systems for PET Bottles in Taiwan

Summary of the Practice

Keywords: Recycling, Deposit-refund system, Extended producer

responsibility, PET bottle management
Country: Taiwan
Province: Entire regions
Area: Entire areas
Duration: Since 1989 Figure 10 Iwatae kiln
Sponsors: Producers
Actorskiln
Iwatae Involved: Central
is the Japanese Government,
design Private Sector,
which is a combination of clayand
kiln Community
and brick kiln. The
Data Resource:
products are of goodAPFED Good
quality Practice
charcoal and wooddatabase
vinegar, but has higher cost because of
its complicatedhttp://www.apfed.net/ki/database/gp.php
design.

2.2.1.4 Hitech kiln

Outline of Practices/Actions:

How does it work?

Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations,
Figure were paid a refund of NT$2.00
11 Hitech kiln
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
This type of kiln
for each is designed
bottle to reduce
delivered. By the reaction
1992 time of charcoal
Taiwan’s productionrate
PET recycling to 1.5was 80
hr/batch.
percent.
2.2.1.5 Usa economic development Co.,ltd
Problem arose: free riders and fund management
As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management Committee.

In order to solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along with reduction of the refund value, the Recycling Fund

Figure 12. Usa’s kiln

3RKH Good Practices www.3rkh.net -1-
This kiln designed by Usa company. The reaction time is 36 hr. and capacity is 7-10 sack.

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 3RKH Good Practices

2.2.1.6 New design kiln MES-20

Title: Deposit-Refund Systems for PET Bottles in Taiwan

Summary of the Practice

Keywords: Recycling, Deposit-refund system, Extended producer

responsibility, PET bottle management
Country: Taiwan
Province: Entire regions
Area: Entire areas
Duration: Since 1989Figure 13. New design kiln MES-20
Sponsors: Producers
Actors
This kilnInvolved: Central
is designed Government,
by Maywa Private
Co., Ltd. (Japan). Sector,
The systemand Community
produces a smaller size
Data Resource:
charcoal. APFED
The reaction timeGood PracticeUses
is 45 minutes. database
temperature controller 450-600 oC for
http://www.apfed.net/ki/database/gp.php
energy (electricity and fuel) saving which accounts for 30%. Condensate wood vinegar
system and a portion of residue gas are feedback to the reaction chamber as the fuel. A
good quality of charcoal product is reported. Table 6 provides a summary of different
types of kiln with their characteristics
Outline of Practices/Actions:
Table 6 Summary characteristics of different type of kilns
How does it work?
Kiln Types Efficiency Energy Capacity Reaction Cooling Drawback Merit
Under the deposit-refund system input
for PET bottles,time manufacturers
stage
and importers
pay certain
TISTR Metalfees
kiln into
25% a fund and consumers
Direct are given1 a
130 kgs of 3-4 refundNofor
night datareturning
Low cost,
PET bottles into designated heat
kiln collection sites. The
coconut industry formed a foundation
hrs/batch Easy to
to administer the recycling fund, which is meant to cover consumer refunds move
Fat clay Clay kiln No data Direct No data No data No data No data No data
and collection and recycling
kiln heat costs for the bottles. PET manufacturers and
importersBrick
Brick werekiln required
No data toDirect
pay into Nothe
data recycling
No data fund according
No data No data to their
No data
sales. Initially, consumers, who
kiln heat returned PET bottles to any of the more than
10,000 established
Iwatae collection
Brick kiln No data Direct locations,
No data were paid No
No data a data
refund
HighofcostNT$2.00
No data
kiln heat
(approximately
Hitech
US$0.06). Recycling
Metal kiln No data Indirect
plants paid
No data 1.5
collectors
No data
NT$0.50 per bottle
No data No data
for each bottle delivered.heatBy 1992 Taiwan’s
kiln PET recycling rate was 80
hrs/batch
percent. Metal kiln No data
Usa No data No data 36 hrs. 7-10 sack No data No data
Co.,ltd of
charcoal
Problem arose:
New Metal kilnfree
Noriders
data and fund management
External Save 45 mins 20-1000 No data Thermal
As recovery of PET bottlessource
design increased,
for energy however, payment
kgs/ hr of the refunds
sensors
resulted in a deficit in the fund.
kiln start upThe problem
30% was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
MES-20
Source: Thaisumi
Recycling FundCo.,Ltd. Retrieve on
Management website http://www.charcoal.snmcenter.com/
Committee.

In order to solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along with reduction of the refund value, the Recycling Fund

3RKH Good Practices www.3rkh.net -1-

9
 3RKH Good Practices

2.2.2 Machinery charcoal process

There are many types of
Title: Deposit-Refund machineforfor
Systems PETcharcoal
Bottles making in Thailand. There are two
in Taiwan
processes for charcoal making; hot process and cold process. (Source: Thaisumi Co., Ltd)
Summary
2.2.2.1 of the Practice
Hot process

Keywords: Recycling, Deposit-refund system, Extended producer

responsibility, PET bottle management
Country: Taiwan
Province: Entire regions
Area: Entire areas
Duration: Since 1989
Sponsors: Producers
Actors Involved: Central Government, Private Sector, and Community
Data Resource: APFED Good Practice database
http://www.apfed.net/ki/database/gp.php
Figure 14 Hot process machine

Sawdust charcoal making process is divided into 3 parts; sieving and conveying of
Outlineto
sawdust of the
Practices/Actions:
dryer, extruding dried sawdust at high pressure and temperature by
extruder, and sending to charring process. The machine design for sawdust extrusion is
important as it is a major factor which decides the quality of final charcoal product.
How does
Another it work?
factor is the charring process. Without good charring process, there is impossible
Under
to the
achieve deposit-refund
good quality products. system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottlesCharcoal”
“Sawdust into designated collection
is being recognized assites.
one ofThe
theindustry formed
best charcoals a foundation
present in the
to administer the recycling fund, which is meant to cover consumer refunds
market. Benefiting from the production process, no additive is required for sawdust
and collection
charcoal making. Itand recycling
is thus, costs
safe-to-use, for for
better thegrilling
bottles. PET manufacturers
purpose and environmental-and
friendly. This helps to reduce the forest cut-down due to
importers were required to pay into the recycling fund according the use of the sawdust wastetoas their
a
raw material.
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
2.2.2.2 Cold process
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
a. Charcoal extruder
percent.
Charcoal extruder is specially designed to maximize the production capacity of charcoal
Problem The
briquette. arose:
casefree
and riders and
parts of the fund management
extruder are made from high-strength steel, coated
As recovery
with of PETlayers.
anti-rust polymer bottles
The increased, however,
material for the shaft and payment of isthe
pulley system refunds
specially
resulted in a deficit in the fund. The problem
selected to suit the high-torque and high-pressure system.was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling
b. High power Fund Management Committee.
crusher

In order
This to solve
high power thehasproblem
crusher of fund
been designed deficit,use.
for industrial theThe
refund
defaultvalue
capacityhas been
of this
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
crusher can be adjusted to match the downstream equipment. The crusher is made from
bottle.selected
special Alonghigh-strength
with reduction of isthe
steel which refund
durable value,to the
and suitable Recycling
use with charcoal. Fund
3-
phase 30 HP motor size is selected so that the production capacity of this crusher is as
high as 10 Metric Ton per day, which is enough to supply for 5 extruders at a time.
3RKH Good Practices www.3rkh.net -1-

10
 3RKH Good Practices

c. Charcoal mixer
Title: Deposit-Refund
Charcoal mixer works asSystems for blender
a mixer and PET Bottles in charcoal
for the Taiwan powder and grains to mix
with natural binders such as tapioca starch or other kinds of starch together with water.
Summary
This mixer isofdesigned
the Practice
to match with typical charcoal size and characteristics to reach the
optimum mixing capacity before sending to the extrusion unit.
Keywords: Recycling, Deposit-refund system, Extended producer
responsibility, PET bottle management
Country: Taiwan
Province: Entire regions
Area: Entire areas
Duration: Since 1989
Sponsors: Producers
Actors Involved: Central Government, Private Sector, and Community
Data Resource: APFED Good Practice database
http://www.apfed.net/ki/database/gp.php

Figure 15 Charcoal extruder (left), High power crusher (middle),Charcoal mixer (right)
Outline of Practices/Actions:
2.3 Marketing
A marketing analysis report was prepared by Department of Industrial Promotion (DIP) on
Howdomestic
both does it market
work?and international market and is reported as following.
Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles
2.3.1 intomarket
Domestic designated collection sites. The industry formed a foundation
to administer the recycling fund, which is meant to cover consumer refunds
and collection
Charcoal and for
has a market recycling costs
restaurants, for barbeque
hotels, the bottles.
centersPET
in manufacturers
Bangkok and otherand
importersThailand
provinces. were required to pay
imports charcoal into
from the
other recycling
countries can befund
seen according
from Table 7. to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
Table 7 Import market of charcoal in Thailand
(approximately
Country
US$0.06). Recycling plants paid collectors
Imported Value (million baht)
NT$0.50 per bottle
Ratio (percentage: %)
for each bottle delivered. 1998 By 1992
1999 2000 Taiwan’s
2001 PET recycling
1998 1999 2000rate2001
was 80
percent.
Total of whole world 12.65 25.39 43.15 27.41 100.00 100.00 100.00 100.00
1 Myanmar 11.19 23.50 41.65 20.02 88.47 92.53 96.54 73.02
Problem arose: free riders and fund management
2 China 0.01 0.13 0.02 2.81 0.06 0.52 0.04 10.25
3 Denmark 0.00 0.00 0.00 1.35 - - - 4.94
As
4 recovery
Thailandof PET bottles
0.00 increased,
0.00 0.00 however,
0.42 - payment
- of
- the1.53
refunds
resulted
5 in a deficit
Cambodia in the
0.20 fund.
0.24The problem
0.13 0.35 was further
1.55 exacerbated
0.94 0.31 by free
1.26
riders
6 – PET packaging0.02
Japan manufacturers
0.00 0.28 not0.75
registered
0.16 with
- or reporting
0.65 2.73to the
Recycling
7 Fund Management
Indonesia 0.01 Committee.
0.00 0.00 0.11 0.09 - - 0.42
8 Laos 0.82 0.45 0.52 0.54 6.50 1.76 1.21 1.96
In order to solve the problem of
9 Italy 0.08 0.00 fund deficit,
0.00 0.11 the refund value has been
0.66 0.01 - 0.40
10 Malaysia
reduced. First it was 0.00 0.16
reduced to 0.24
NT$1.00 0.11
and 0.02 0.64 0.56 0.39
then further, to NT$0.50 per
Total 12.34 24.48 42.85 26.57
bottle.Other
Along with
countries reduction
0.31 0.91 of the
0.30 refund
0.85 value, the Recycling Fund
Growth rate - 100.74 69.93 -36.47
Source: Department of commerce, 2002 as cited in the report of DIP
3RKH Good Practices www.3rkh.net -1-

11
 3RKH Good Practices

2.3.2 International market

Title: Deposit-Refund Systems for PET Bottles in Taiwan
The values of charcoal exported to the world market in 2000 and 2001 were 22.21 and
Summary
47.22 millionof baht.
the Practice
The following countries are the main export market of Thailand’s
charcoal;
Keywords: Recycling, Deposit-refund system, Extended producer
responsibility, PET bottle management
Table 8 Export market of charcoal in Thailand
Country: Taiwan
Province:
Country Entire regions Imported Value (million baht) Ratio (percentage: %)
Area: Entire areas 1998 1999 2000 2001 1998 1999 2000 2001
Total of whole world 52.00 60.06 22.21 47.22 100.00 100.00 100.00 100.00
Duration:
1 Japan
Since 198910.45 18.03 12.22 25.20 20.10 30.02 55.01 53.36
Sponsors:
2 South Korea Producers 6.50 8.52 0.36 7.06 12.50 14.19 1.63 14.96
Actors
3 TaiwanInvolved: Central 5.81Government,
5.22 Private
2.40 6.38Sector,
11.18and8.70
Community
10.82 13.51
Data Resource: APFED Good Practice database
4 Hong Kong 0.22 2.19 1.69 2.62 0.43 3.65 7.59 5.54
5 Malaysia http://www.apfed.net/ki/database/gp.php
0.08 0.00 1.23 1.33 0.15 - 5.55 2.81
6 Canada 0.25 0.47 0.12 0.91 0.48 0.78 0.56 1.92
7 America 0.25 0.34 0.06 0.45 0.49 0.57 0.26 0.96
8 Australia 0.00 0.21 0.44 0.43 - 0.35 1.97 0.92
9Outline
Italy of Practices/Actions:
1.09 0.98 0.00 0.34 2.09 1.63 - 0.72
10 French 0.00 0.03 0.02 0.23 - 0.05 0.10 0.49
Total 24.65 36.01 18.54 44.95
HowOther
does it work?
countries 27.35 24.06 3.67 2.27
Under the deposit-refund system for PET bottles, manufacturers
Growth rate - 15.51 -63.02 112.61 and importers
pay certain fees into a fund and consumers are
Source: Department of commerce, 2002 as cited in the report of DIP given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer the recycling fund, which is meant to cover consumer refunds
and collection
Table andcharcoal
9 Exported value recycling
by type costs for the bottles. PET manufacturers and
of biomass
importers were required to pay into 106 the recycling 106 fund according to their
1998 1999 2000 2001 2002
Type 106 106 106
sales. Initially, consumers, who returned PET bottles Bahtto any of the Bahtmore than
Tons Tons Tons Tons Tons
Baht Baht Baht

10,000 established collection locations, were paid a refund of NT$2.00

Mangrove 2,337.32 30.03 2,007.96 23.41 782.36 11.06 1,655.22 20.85 1,315.08 19.04
Para rubber - - - - - - - - 105.00 0.19**
(approximately
Eucalyptus* - US$0.06).
- Recycling
40.40 plants36.78
0.66 paid collectors
0.63 10.80NT$0.500.23 per bottle
26.00 0.38
for each bottle
Sawdust 1,506.64 delivered.
17.71 By 1992
844.17 8.75 Taiwan’s
238.31 PET
3.04 recycling
96.47 rate
1.73 was61.77 80 0.85
percent.
Total 3,843.96 47.74 2,892.53 32.82 1,057.45 14.73 1,762.49 22.81 1,507.85 20.46
Source: Department of Foreign Trade, 2003
Note:
Problem
* Start exportarose: free
since April riders and fund management
1999
As
**Therecovery of PET
amount of approval bottles
value for exportincreased, however,
to Malaysia from payment of the refunds
Satun Province
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
2.3.3 Future
Recycling market
Fund trend
Management Committee.

Presently
In orderbusiness
to solve of toast
the and grill restaurant
problem of fund is raising
deficit,in the
Thailand. Alsovalue
refund there ishas
a huge
been
market mainly in Japan, Korea and Taiwan to export charcoal.
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per Moreover, there are
abundant agriculture residues in all the parts of Thailand which are still unused. Wood
bottle. Along with reduction of the refund value, the Recycling Fund
vinegar or pyroligneous acid has also traditionally been used as an insect repellant,
deodorizer, antibacterial agent, sterilizer, alkaline bath and wash, and food additive. The
price of wood vinegar is 150 baht/ liter, while charcoal price is 15-20 Baht / kg (2004).
3RKH Good Practices
Therefore, charcoal www.3rkh.net - 1 - for future market.
industries need to be promoted

12
 3RKH Good Practices

2.4 Barriers
Title: Deposit-Refund Systems for PET Bottles in Taiwan
The two main barriers were reported by Department of Industrial Promotion (DIP) as
following:
Summary of the Practice

2.4.1 Price and cost

Keywords: Recycling, Deposit-refund system, Extended producer
responsibility, PET bottle management
The main competitor is Myanmar in term of low cost of raw materials and exported
Country: Taiwan
prices. Malaysia also appears to have the advance technology of charcoal making. As a
result, costs of Entire
Province: charcoalregions
production in those countries are lower compared to Thailand.
Area: Entire areas
Duration:ThailandSince 1989 price and cost
Charcoal
Sponsors: Producers Baht/kg
Actors Involved: Central Government,
Price of charcoal (Corn cob) Private Sector, and
3.5 (in Community
2001)
Data Resource:Price ofAPFED Good
charcoal (OtherPractice database
raw material) 5-7
http://www.apfed.net/ki/database/gp.php
Price of Charcoal ( Mangrove) 15
Price of Charcoal Briquetting 20
Cost of Charcoal briquetting 8-10
Outline of Practices/Actions:
Source: Personal communication, Forestry department, 2007

Thailand estimate price of charcoal briquetting machine

How does Machinary
it work? Baht
Under the Colddeposit-refund system for PET bottles, ~
process extruder manufacturers
70,000 and importers
pay certain Hotfees intoextruder
process a fund( Electricity
and consumers
heater) are~100,000
given a refund for returning
PET bottles into Personal
Source: designated collectionForestry
communication, sites. The industry2007
department, formed a foundation
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
2.4.2
sales. Financial support
Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately
Mainly medium andUS$0.06). Recycling
small enterprises plantsofpaid
are lacking collectors
financial NT$0.50
support for per bottle
the investment
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
for advance technology and for their working capital.
percent.
2.4.3 Others
Problem arose: free riders and fund management
There are some of
As recovery keyPET
barriers such as
bottles Import –Export
increased, regulations,
however, labor skill,
payment of theExchange
refunds
rate, quality of product to meet the customer requirement etc.
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling
2.5 Fund Management
Recommendations Committee.
and suggestions
DIP reported the recommendations and suggestions as following items;
In order to solve the problem of fund deficit, the refund value has been
reduced.
1. PromotingFirst it was reduced
on Research to NT$1.00
and development and then
and improving thefurther, to ofNT$0.50
efficiency charcoalper
bottle. Along with reduction of the refund value, the Recycling
production technologies to support the increasing of charcoal demand and also reduce Fund
the environment impacts during the production process.
2. Promoting charcoal utilization in Thailand substitute of gas and others sources of fuel.
3RKH
3. Good Practices
Promoting www.3rkh.net
financial - 1 small
support for medium and - enterprises.

13
 3RKH Good Practices

2.6 Research and Development

Below are the list of thesis/research
Title: Deposit-Refund Systems forstudies
PET conducted
Bottles in at AIT and other institutes in
Taiwan
Thailand.
Summary
2.6.1 of the
A study on Practice
sawdust bio-coal
Author: Bhattacharya, Sankar Prasad AIT Thesis no. ET-88-5
Asian Institute ofRecycling,
Keywords: Technology, 1988
Deposit-refund system, Extended producer
responsibility,
2.6.2 A study onPETthe
bottle management
carbonisation of granular and briquetted biomass
Country: Taiwan
Author: Balasubramanian, Balakumar AIT RSPR no. ET-88-2
Province: Entire regions
Asian Institute of Technology, 1988
Area: Entire areas
Duration:
2.6.3 A studySince 1989 and biocoal in Thailand
of briquettes
Sponsors:
Author: Prasong Producers
Wongvicha AIT RSPR no. ET-88-4
Actors Involved: Central Government,
Asian Institute of Technology (AIT), 1988 Private Sector, and Community
Data Resource: APFED Good Practice database
2.6.4 A studyhttp://www.apfed.net/ki/database/gp.php
of biomass briquette production and torrefaction
Author: Srikanthan, Saravanamuttu AIT Thesis no. ET-88-6
Asian Institute of Technology (AIT), 1988
Outline of Practices/Actions:
2.6.5 A study on biomass torrefaction and pre-heated biomass densification
Author: Rahman, A. N. M. Mizanur AIT RSPR no. ET-89-2
How does
Asian it work?
Institute of Technology, 1989
Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain
2.6.6 A studyfees into a fund
of densification ofand consumers
preheated sawdustare given a refund for returning
PET bottles
Author: Aqa, into
Sayeddesignated collection
AIT Thesis no. ET-90-4 sites. The industry formed a foundation
to administer
Asian Institute ofthe recycling
Technology, fund, which is meant to cover consumer refunds
1990
and collection and recycling costs for the bottles. PET manufacturers and
2.6.7 A study
importers wereof torrefied
requiredwood and oil/water
to pay into themixture
recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
Author:Ye Lwin AIT RSPR no. ET-92-7
10,000Institute
Asian established collection
of Technology, 1992 locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
2.6.8 A study on torrefied wood-oil/water slurry
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
Author:Vu
percent. Quang Vinh AIT Thesis no. ET-93-3
Asian Institute of Technology, 1993
Problem
2.6.9 arose: Briquetting
Improved free riders and fund management
System
As recovery of PET bottles increased, however, payment of the refunds
Author: S.C. Bhattacharya and S. Kumar
resulted in a deficit in the fund. The problem was further exacerbated by free
Asian Institute of Technology (AIT), 2005
riders – PET packaging manufacturers not registered with or reporting to the
Recycling
2.6.10 Fund Management
Production Committee.
of Activated Carbon from Coconut Shell: Optimization Using
Response Surface Methodology
In order
Author: MK.toB.solve theand
Gratuito problem of fund deficit, the refund value has been
A. Dutta AIT
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle.Production
2.6.11 Along with reduction
of charcoal of thebriquette
and charcoal refund from
value, the Recycling
mangrove timbers Fund
Author: Wiruch Chuenvarin, 1987

3RKH Good
2.6.12 ThePractices www.3rkh.net
utilization - 1 - as an alternative domestic fuel
of carbonized rice hulls
Author: Supaporn Manarangsan and Apichai Terdteamwong
Faculty of Engineering, Khon Kaen University, 1989

14
 3RKH Good Practices

2.6.13 Design and construction charcoal extruder for household production

Author: Tharinee Mahayosnunth,
Title: Deposit-Refund Systems for PET Bottles in Taiwan
Kasetsart University, 2005
Summary
2.6.14 of the Practice
Compacted charcoal production from corn cob mixed with orange peel
Authors: Pathomasok Wilaipol, Weerasak Kerdsang, and Narong Munkongkerd
Faculty of Engineering,
Keywords: NaresuanDeposit-refund
Recycling, University , 2005 system, Extended producer
responsibility,
2.6.15 The study PET
onbottle management
compacted charcoal production from green tea residues by
Country: Taiwan
screw press
Province: Entire regions
Author: Vanita Chaddam,
Area:Mongkut'sEntire
King areas
Institute of Technology Ladkrabang, 2005
Duration: Since 1989
Sponsors:
2.6.16 Producers of compacted charcoal production from cassava rhizome
The characteristics
Actorsby Involved: Central
refer to raw Government,
material size and ratioPrivate Sector,
of binder and Community
mixing
Data Resource:
Author APFED Good Practice
: Jutamach Bussarakumwadee, database
Kasetsart University, 2004
http://www.apfed.net/ki/database/gp.php
2.6.17 Activated carbon from corn cob
Author : Pongsatorn Kowkachaporn
Outline of Practices/Actions:
Chulalongkorn University

2.6.18 Production of smokeless coal briquettes in a newly-designed cooking stove

How does
Author: Taninit work?
Tantakasem
Under the deposit-refund
Chulalongkorn University system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles
2.6.19 Quality into designated
improvement collection
of coal fines bysites. The industry formed a foundation
carbonization
to administer
Author: Anunya the recycling fund, which is meant to cover consumer refunds
Potjanart
and collection
Chulalongkorn and recycling costs for the bottles. PET manufacturers and
University
importers were required to pay into the recycling fund according to their
2.6.20
sales. Production of activatedwho
Initially, consumers, carbon from palm-oil
returned shell by
PET bottles toactivated
any of with
the more than
microwave energy
10,000 established collection locations, were paid a refund of NT$2.00
Author: Warawut Prachasirisakul
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
Chulalongkorn University
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.
2.6.21 Development of the appropriated ratio of compacted charcoal from rice husk
mixed with straw by low cost of charcoal extruder
Problem arose: free riders and fund management
Rajamangala University of Technology Isan Sakonnakhon Campus
As recovery of PET bottles increased, however, payment of the refunds
In process 1/1/2007- 30/9/2007
resulted in a deficit in the fund. The problem was further exacerbated by free
riders –Utilization
2.6.22 PET packaging manufacturers
of fruit residues not registered
for compacted with or reporting to the
charcoal production
Recycling
Rambhai Fund
Barni Management
Rajabhat University, Committee.
Chanthaburi
In progress 1/1/2007- 30/9/2007
In order to solve the problem of fund deficit, the refund value has been
reduced.
2.6.23 First it charcoal
Compacted was reduced to NT$1.00
production from cornand then
cob by helixfurther, to NT$0.50 per
twist method
bottle. Along with
Naresuan University, 2005 reduction of the refund value, the Recycling Fund

3RKH Good Practices www.3rkh.net -1-

15
 3RKH Good Practices

2.7 List of Organizations;

Title: Deposit-Refund Systems for PET Bottles in Taiwan

Summary
2.7.1 of thecenters
Research Practice
1. Thailand Institute of Scientific and Technological Research, Pathumthani,
www.tistr.or.th tel. 0-2577-9000
Keywords: Recycling, Deposit-refund system, Extended producer
2. Royal Chitralada projects, www.kanchanapisek.or.th
responsibility,
3. RoyalPET bottle management
Agricultural station Angkhang, Chiengmai, www.angkhang.com
Country: Taiwan
4. National Innovation Agency (NIA). www.nia.or.th
Province: Entire regions
Area: Entire areas
Duration:
2.7.2 Sinceoffices
Government 1989
Sponsors: Producers
1. Department of Alternative Energy Development and Efficiency (DEDE)
Actors Involved: Central Government,
Tel.0-262-7100-6, www.dede.go.th Private Sector, and Community
Data Resource:
2. ForestryAPFED Goodwww.forest.go.th
Department, Practice database
http://www.apfed.net/ki/database/gp.php
3. Department of Industrial Promotion, www.dip.go.th
4. Office of Import –Export Control Policy, Department of Foreign Trade,
www.dft.moc.go.th
5. Department of Export Promotion, Ministry of Commerce Royal Thai
Outline of Practices/Actions:
Government, www.depthai.go.th

How does it work?

2.7.3 Universities
Under the deposit-refund system for PET bottles, manufacturers and importers
1. Energy
pay certain feesField
intoofaStudy,
fund Asian
and Institute of Technology,
consumers are givenPathumthani,
a refund for returning
www.ait.ac.th
PET bottles into designated collection sites. The industry formed a foundation
2. Mechanical Engineering, Faculty of Engineering, Rajamangala University of
to administer the recycling fund, which is meant to cover consumer refunds
Technology Thanyaburi, Pathumthani. Tel. 081-928-5203, 084-702-6190,
and collection and recycling costs for the bottles. PET manufacturers and
www.rmutt.ac.th
importers were required
3. Kasetsart University,towww.ku.ac.th
pay into the recycling fund according to their
sales. 4.
Initially,
Chiangconsumers,
Mai University,who returned PET bottles to any of the more than
www.cmu.ac.th
10,0005.established
Chulalongkorn University, locations,
collection were paid a refund of NT$2.00
www.chula.ac.th
(approximately US$0.06).
6. Mahasarakham Recycling
University, plants paid collectors NT$0.50 per bottle
www.msu.ac.th
for each bottle University,
7. Naresuan delivered.www.nu.ac.th
By 1992 Taiwan’s PET recycling rate was 80
percent.8. Rambhai Barni Rajabhat University, Chanthaburi, www.rbru.ac.th
9. Rajamangala University of Technology Isan Sakonnakhon Campus
Problem arose: free riders and fund management
www.skc.rmuti.ac.th
As recovery of PET
10. Udonthani bottles
Rajabhat increased,
University, however, payment of the refunds
www.udru.ac.th
resulted11.inKhon
a deficit in the fund.
Kaen University, The problem was further exacerbated by free
www.kku.ac.th
riders –12.PET packaging
King manufacturers
Mongkut's Institute not North
of Technology registered with
Bangkok, or reporting to the
www.kmitnb.ac.th
13. King Mongkut's Institute
Recycling Fund Management Committee. of Technology Ladkrabang, www.kmitl.ac.th

In order
2.7.4 to / solve
Plant the problem of fund deficit, the refund value has been
Industrials
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
Outstanding producers
bottle. Along withand market leaders
reduction of of charcoal
the industry
refund in Thailand
value, are;
the Recycling Fund
1. Chonburi Salakhu Co., Ltd., in Chonburi
2. P & A Charcoal Thai Co., Ltd., in Phra Nakhon Sri Ayuttaya.
3. S.N.P. Co., Ltd., in Yasothon. -1-
3RKH Good Practices www.3rkh.net
4. Nathawee Rung-ruaeng Industry Co., Ltd., in Songkhla,
All producers and entrepreneurs are as follow:

16
 3RKH Good Practices

Table 10 List of producers and entrepreneurs of charcoal in Thailand

Entrepreneur Location Registry Capital
Title: Deposit-Refund
Chonburi Salakhu Co., Ltd. Systems for PET Bottles in Taiwan
Chonburi 18,284,000
P & A Charcoal Thai Co., Ltd. Phra Nakhon Sri Ayuttaya 12,400,000
S.N.P. Co., Ltd. Yasothon 9,600,000
Summary of the Practice
Nathawee Rung-ruaeng Industry Co., Ltd. Songkhla 5,100,000
Nakhon Sawan 4,932,500
Preedasuth Construction Limited Partnership Ranong 4,250,000
Keywords:
Niyom and Son Recycling, Deposit-refundLampang
system, Extended 4,100,000
producer
responsibility, PET bottle management Surat Thani 4,100,000
Country:
Charcoals Co., Taiwan
Ltd. Nakhon Si Thammarat 3,600,000
Province:
Khobkarn Ranong Entire regions
Stove Ranong 3,500,000
Subthoraneekaset Phichit 3,400,000
Area: 1 GasifiedEntire
Panakij Stove areas Ranong 2,350,000
Duration:Praditthakam
Chaipanich SinceFactory
1989 Limited Partnership Roi Et 1,750,000
Sponsors:
Wongto Producers
Construction Limited Partnership Maha Sarakham 1,700,000
Actors Involved: Central Government, Private Sector, and Community
Phangnga 1,611,000
Satun 1,610,000
Data Resource: APFED Good Practice database
Kaper Gasified Stove Co., Ltd. Ranong 1,600,000
http://www.apfed.net/ki/database/gp.php
Phangnga 1,600,000
Panakij 2 Gasified Stove Co., Ltd. Ranong 1,500,000
Thaworn Gasified Stove Co., Ltd. Ranong 1,400,000
Phangnga 1,200,000
Outline
Cheme Gas of Practices/Actions:
Stove Co., Ltd. Ranong 1,050,000
Surat Thani 1,050,000
Trang 1,030,000
How
Rim doesBang
Khlong it work?
Wang Gas Stove Co., Ltd. Phangnga 1,010,000
Under Department
Source: the deposit-refund system
of registry , 2002 forinPET
as cited the bottles, manufacturers and importers
report of DIP
pay certain fees into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer
Table the recycling
11 List of Charcoal fund, which
import enterprise is meant to cover consumer refunds
of Thailand
and collection and recycling costs for the bottles.
Enterprises PETAddress
Contact manufacturers and
T.N.D. Food Industry Co., Ltd. 229 Moo 3, T. Tun Sukhla, A. Sriracha, Chonburi
importers were required to pay into the recycling fund according to their
Ranong Rungsub Limited Parnership 170/121 Moo 1, T. Park-nam, A. Muaeng, Ranong
sales. Initially,
Supamongkol consumers,
Intertrade who returned
Limited Parnership PET5, T.
75/10 Moo bottles toA.any
Bangnorn, of the
Muaeng, more than
Ranong
10,000 established
Didomon Group Co., Ltd. collection locations, were paid a refund of NT$2.00
144 Soi Sukhumvit 55, Khlongton, Khlong tuey, Bangkok
(approximately
Thai Nippon Foods Co.,US$0.06).
Ltd. Recycling1/21plants
Moo 5,paid
Rojanacollectors NT$0.50
Rd., T. Khanharm, per
A. Uthai, Phrabottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
Nakhon Sri Ayuttaya
Bangkok Crystal Co., Ltd. 80/267 Moo 6, Phraram 2 Rd., Samaedum, Bangkhuntiaen,
percent. Bangkok
P & A Charcoal Thai Co., Ltd. 25 Moo 4, Ayuttaya-Ban Salee Rd., T. Bang Nomko, A.
Problem arose: free riders and fundSena, management
Phra Nakhon Sri Ayuttaya
As recovery of PET bottles increased, however,
Bird Land Co., Ltd. 2459 Petchburi Tud Maipayment
Rd., Bangkapi,of the
Houy refunds
Khwang,
Bangkok
resulted in a deficit in the
SYT Charcoal Industry Co., Ltd. fund. The problem was further exacerbated by free
531/1 Intharakeeree Rd., T. Mae sod, A. Mae sod, Tak
ridersHwoo
Kiaen – PET packaging
Marketing Co., Ltd. manufacturers not
1091/49 registered
Petchburi Rd., Soi with
Jarurat,or reporting to the
Mukkason,
Recycling Fund Management Committee. Ratchathewee, Bangkok
Rizzima Co., Ltd. 25 Ratchada Phisak, Khlong Tuey, Bangkok
Almond (Thailand) Co., Ltd. 31 Moo 14, Bangchan Industrial park, Sereethai, Meanburi,
In order to solve the problem of Bangkok fund deficit, the refund value has been
reduced.
Pek FirstLtd.
Industries Co., it was reduced to 620/5
NT$1.00 and
Moo 11, then further,
Sukhaphiban to NT$0.50
8, T. Nongkharm, per
A. Sriracha,
bottle. Along with reduction of Chonburi the refund value, the Recycling Fund
Kroa Phuket Air Co., Ltd. 76/3 Ranong Rd., T. Taladnuea, A. Muaeng, Phuket
Deathalm Trading Co, Ltd. 2533 Sukhumvit Rd., Bangjak, Phrakhanong, Bangkok
Phamornchai Supply Limited Partnership 436/2 Moo 8, Prachar-uthit Rd., Rathburana, Bangkok
3RKH
Zero GoodTech
Laser Practices www.3rkh.net
(Thailand) Co., Ltd. - 1 -Nontri Rd., Chongnontri, Yarnnawa, Bangkok
116/83
Source: Department of commerce, 2002 as cited in the report of DIP

17
 3RKH Good Practices

Table 12 List of Charcoal export enterprise of Thailand

Enterprises Contact Address
Title: Deposit-Refund
Tostem Systems for
Thai Marketing Co., Ltd. 60/2PET Bottles Project
Navanakhon in Taiwan2, Soi Navanakhon 11, Khlong
Neung, Khlong Luang, Pathumthani
Chayakij Trading Limited Partnership 1/18-19 Soi Junladit, Petchburi Rd., Phayathai, bangkok
Summary of the Practice
Preecha Charcoal Limited Partnership 133-135 Mitr Pan Rd., Pomprabฯ, Bangkok
Thai ISEKYU Co., Ltd. 1/16 Soi Sean Samran, Sukhumvit 10 Rd., Khlong Tuey,
Bangkok
Keywords:
Fiverses Co., Ltd Recycling, Deposit-refund
- system, Extended producer
responsibility,
Thai Coconut Fiber PET bottle
Limited management
Partnership 21/3 Soi 1 (Prachathipat), T. Hard Yai, A. HardYai,
Country: Taiwan Songkhla
Province:
P Entire
& A Charcoal Thai regions
Co., Ltd. 25 Moo 4, Ayuttaya-Ban Salee Rd., T. Bang Nomko, A.
Sena, Phra Nakhon Sri Ayuttaya
Area: International
Cinmax Entire areas
Co., Ltd. -
Duration:
Kodaks (Thailand)Since 1989
Co., Ltd. 197 Vibhawadee Rungsit Rd., Sarmsean Nai, Phayathai,
Sponsors: Producers Bangkok
Actors Involved: Central Government,
Maruchin Co., Ltd. 207 Private Sector,
Charansanidwong and Community
11, Charansanidwong Rd., Tha Phra,
Bangkok Yai, Bangkok
Data Resource: APFED Good Practice database
Source: Department of commerce, 2002 as cited in the report of DIP
http://www.apfed.net/ki/database/gp.php

Outline of Practices/Actions:

How does it work?

Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.

Problem arose: free riders and fund management

As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management Committee.

In order to solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along with reduction of the refund value, the Recycling Fund

3RKH Good Practices www.3rkh.net -1-

18
 3RKH Good Practices

2.7.5 Machine Manufacturer

Title: Deposit-Refund Systems for PET Bottles in Taiwan
Price
Machine Type Company Name Address Contact Person Telephone Fax
(Baht)
Summary of the Practice
1 Packaging Machine 7,000 up Bunyong Engineering Co., 94 Moo 4, Bangchun, Khun Prapan 0-2517-9215-8 0-2517-8766
Ltd Sereethai Rd., Kunnayarw, Praditthanasarn, Khun
Bangkok
Keywords: 10230
Recycling, Pratheep Thongdechsri
Deposit-refund system, Extended producer
responsibility, PET bottle management
Country: Taiwan
Province:
B.T.T. (Thailand) Co., Ltd. 89/6 Moo Entire regions
3, Trok Moo Ban Khun Kunya 0-2744-5090-2 0-2744-5093
Area:Nork, Sukhumvit
Entire areas
105 Rd.,
Duration:
Bangna, Since 1989
Bangkok 10260
Sponsors: Producers
Actors Involved: Central Government, Private Sector, and Community
Swen Tech (Thailand)Data Co., Resource:
48/57-58 SoiAPFED
Rouam Good
Pattana,Practice database
Khun Thawee 0-2398-8896-7 0-2398-7168
Ltd. Sukhumvit http://www.apfed.net/ki/database/gp.php
105 Rd., Bangna, 0-2744-4974
Bangkok 10260
Siam Golden Sales and 11/440 Soi Lert Pattana Nuea, Khum Prakij 0-2878-0342-4 0-2476-8802
Service Co., Ltd. Outline
RimofKhlong
Practices/Actions:
Bang Kor Rd.,
Jormthong, Bangkok 10150
2 Briquetting Thaisumi Co.,Ltd 95 Moo3, Bangpa-in, Mr.Anupap Udomsab 66-1-4466153 66-2-6735670
Machine How does it work?
Ayyutthaya, Thailand www.thaisumi.com
Usa economic development Under56/7
thePrachachuen
deposit-refund
Road, system for PET bottles, manufacturers
Tung http://www.usa- 662 5890935 ; and
662 importers
5892221
Co.,Ltd pay certain fees into a fund and
Song Hong, Lak Si, Bangkok eco.com consumers are given a refund for returning
PET bottles
10210 into designated collection sites. The industry formed a foundation
3 Gasified Stove Depend Modified and Design by to administer the recycling fund, which is meant to cover consumer refunds
on size Producer and collection and recycling costs for the bottles. PET manufacturers and
Source: Department of commerce, 2002 as cited in the report of DIP importers were required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent. 19

Problem arose: free riders and fund management

 3RKH Good Practices

References
Title: Deposit-Refund
Bhattacharya Systems
S.C. and Salam for PET
P.A., 2006. BottlesEnergy
Biomass in Taiwan
in Developing Countries: A
Multi-Facetted Study in Selected Asian Countries. Asian Regional Research Programme
inSummary of the Practice
Energy, Environment and Climate (ARRPEEC). Energy field of study. Asian Institute
of Technology (AIT), Thailand.
Keywords:
Chiang Recycling,
Mai University; Deposit-refund
www.cmu.ac.th system, Extended producer
responsibility, PET bottle management
Country:
Chulalongkorn Taiwan
University, www.chula.ac.th
Province: Entire regions
Area:Technology.
Clinic Entire areasof Science and Technology. Retrieve on website
Ministry
Duration: Since 1989
www.clinictech.most.go.th
Sponsors: Producers
Actors Involved:
Department Central
of Alternative Government,
Energy Private
Development Sector,(DEDE).
and Efficiency and Community
Retrieve on
Data Resource: APFED Good Practice database
website www.dede.go.th
http://www.apfed.net/ki/database/gp.php
Department of Foreign Trade (DFT), Ministry of Commerce Thailand. Retrieve on
website www.dft.moc.go.th/
Outline of of
Department Practices/Actions:
Industrial Promotion (DIP). Retrieve on website http://www.dip.go.th

Garivait S., Chaiyo U., Patumsawad S. and Deakhuntod J., 2006. Physical and Chemical
How does it work?
Properties of Thai Biomass Fuels from Agricultural Residues. The 2nd Joint International
Under theon
Conference deposit-refund system
“Sustainable Energy and for PET bottles,
Environment (SEEmanufacturers and importers
2006)”1-23 November 2006,
pay certain fees
Bangkok, Thailand into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer
Kasetsart the www.ku.ac.th
University; recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers
Khon were required
Kaen University to pay into the recycling fund according to their
www.kku.ac.th
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000
King established
Mongkut's Institutecollection locations,
of Technology werewww.kmitnb.ac.th
North Bangkok, paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each
King Mongkut'sbottle delivered.
Institute By 1992
of Technology Taiwan’s
Ladkrabang, PET recycling rate was 80
www.kmitl.ac.th
percent.
Mahasarakham University; www.msu.ac.th
Problem arose: free riders and fund management
Naresuan University; www.nu.ac.th
As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
Rambhai Barni Rajabhat University, Chanthaburi; www.rbru.ac.th
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund
Rajamangala Management
University Committee.
of Technology Isan Sakonnakhon Campus

In order toUniversity
Rajamangala solve the problem of
of Technology fund deficit,
Thanyaburi, the refund value has been
Pathumthani.
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along
Research Library ofwith reduction
National Research of the ofrefund
Council value,
Thailand. Retrievethe Recycling Fund
on website
http://www.riclib.nrct.go.th/

Sajjakulnukit B. etwww.3rkh.net
3RKH Good Practices -1-
al, 2005.Assessment of sustainable energy potential of non-plantation
biomass resources in Thailand. Bureau of Energy Research, Department of Alternative
Energy Development and Efficiency, Thailand and Energy Program, School of

20
 3RKH Good Practices

Environment, Resources and Development, Asian Institute of Technology. Retrieved

from website http://www.energy-based.nrct.net/ On 12th November 2006.
Title: Deposit-Refund Systems for PET Bottles in Taiwan
Status of SPPs (July 2006), Electric Generation Authority of Thailand (EGAT),
Summary of the
www.egat.com Practice
(Thai version)

Surin Ngaemngam and Tetsuo Tezuka, 2006. Effect of Energy Policy on Biomass-based
Keywords:
Power Recycling,
Generation Deposit-refund
in Thailand The system,
2nd Joint International Extended
Conference producer
on “Sustainable
responsibility,
Energy PET bottle
and Environment management
(SEE 2006)”1-23 November 2006, Bangkok, Thailand.
Country: Taiwan
Province: Entire regions
Thaisumi Co.,Ltd, online www.thaisumi.com and http://www.charcoal.snmcenter.com/
Area: Entire areas
Duration: Since 1989
Udonthani Rajabhat University
Sponsors: Producers
Actors Involved: Central Government, Private Sector, and Community
Data Resource: APFED Good Practice database
http://www.apfed.net/ki/database/gp.php

Outline of Practices/Actions:

How does it work?

Under the deposit-refund system for PET bottles, manufacturers and importers
pay certain fees into a fund and consumers are given a refund for returning
PET bottles into designated collection sites. The industry formed a foundation
to administer the recycling fund, which is meant to cover consumer refunds
and collection and recycling costs for the bottles. PET manufacturers and
importers were required to pay into the recycling fund according to their
sales. Initially, consumers, who returned PET bottles to any of the more than
10,000 established collection locations, were paid a refund of NT$2.00
(approximately US$0.06). Recycling plants paid collectors NT$0.50 per bottle
for each bottle delivered. By 1992 Taiwan’s PET recycling rate was 80
percent.

Problem arose: free riders and fund management

As recovery of PET bottles increased, however, payment of the refunds
resulted in a deficit in the fund. The problem was further exacerbated by free
riders – PET packaging manufacturers not registered with or reporting to the
Recycling Fund Management Committee.

In order to solve the problem of fund deficit, the refund value has been
reduced. First it was reduced to NT$1.00 and then further, to NT$0.50 per
bottle. Along with reduction of the refund value, the Recycling Fund

3RKH Good Practices www.3rkh.net -1-

21