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Some companies, Spectrum for example, takes their broken glass cathedral colours and clear glass and put back into the furnace as part of a batch. But mixed colours can not be re-melted effectively at this time. Due to the overabundance of green and brown bottle glass, construction engineers are experimenting with including coloured glass bits as a component of asphalt for paving.
We use our stained glass scraps for doing mosaics and jewelry, so that could be considered a form of recycling! Also if you want to use scraps for childrens projects, get a rock tumbler and throw in a handful of scraps. Not only will it take off the sharp edges but will give a beach glass appearance.
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