At MSR we get this question all the time: How do you recycle fuel canisters?

Isobutane canisters are made of painted steel and plastic valves. Technically they can be recycled as mixed metal. Unfortunately, the process is more complicated than just throwing your spent canister in a bin. Fuel canisters can only be recycled in areas where mixed metal is accepted, and they can only be processed when properly prepared beforehand.

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Source: cascadedesigns.com