Strategic network design for recycling of EPS insulation material – insights from a German case study

The extensive use of external thermal insulation composite systems (ETICS) using expanded polystyrene (EPS) for building insulation in Germany has resulted in accumulating end-of-life EPS-ETICS. To address limited waste management options and enhance EPS circularity, alternative recycling options like pyrolysis or solvent-based recycling need to be implemented. However, efficient recycling requires ex-ante analyses of the corresponding reverse logistics networks, including all necessary pre-treatment and transport processes. This study aims to develop a decision support system to determine optimal EPS-ETICS waste management by minimising the net present value of the corresponding network design. Our mixed-integer linear optimisation model considers decisions on technology, capacity, and location for pre-processing and recycling facilities as well as on material flow allocation. Applied to a German case study, our model finds pyrolysis and solvent-based recycling economically superior to current waste treatment in waste incineration plants. We present an optimal network design combining central pyrolysis with decentral pre-processing. A scenario analysis shows fluctuating styrene and polystyrene prices might favour solvent-based recycling over the optimal choice in pyrolysis, with minor overall cost differences. Further, legal recycling quotas of at least 40% would be necessary to promote solvent-based recycling and enhance EPS circularity beyond what is achievable through pyrolysis.