> It is amazing how much infrastructure and technology is in place for a process that is proving incompatible with reality (both in terms of capability of the tech, and economics of the commodities).
Is it incompatible? The article makes it sounds like a clear win for the city, and a sometimes-win for the plant:
All of this may mean that at any given moment, recycling can be anything from highly profitable to a struggle to cover costs. If we were to shut these facilities down during periods where they weren't profitable, however, we'd be wasting infrastructure and expertise we'd want when costs shift in the other direction.
The city does pay a tipping fee to get rid of the materials, but it's less than what it would pay to landfill them—plus it avoids the cost of transporting everything to the landfill.
The city even has a chance to get some of its tipping fee back. When recycled materials are sufficiently valuable, Sims shares a percentage of the profits back with the government. During periods where these materials are priced low, the company gets to keep any profits it can eke out.
The net result is that the city can benefit when recycled materials are valuable. And when raw material prices are low, it's still profitable to keep the facility operating.