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Packing peanuts, also known as polystyrene peanuts, can be dropped off at some office supply stores for reuse but are not recyclable. Peanuts made from vegetable starch melt when they are wet and can be recycled in a compost bin. For a list of packaging peanut collection sites near you, call the Plastic Loosefill Council at 1-800-828-2214.
Source:
The Consumer Recycling Guide: Recycling more obscure materials
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