This is a snippet from an explanation found on a blog post at RecycleCoach.com:
“Because paper doesn’t get
heated during its recycling process, grease and oil combine with the
pulp, which can ruin the batch.
[...]
That’s where the grease from your
pizza box gunks up the works. Even though it’s been through a soapy
bath, if you’ve ever washed something full of grease or oil, you know
that it takes a quite bit of effort — and more than your average amount
of soap — to remove it completely.
[...]
Grease and oil are two of the
worst contaminants in paper recycling.
[...]
When in doubt, just cut off
the greasy parts, throw them in the trash and recycle the rest.”
The video below is worth watching as it shows the process used in paper recycling. Did you know, for example, that pulp is naturally gray and it gets a coat of white ink applied to it at the end of the process to give paper its traditional color?
How it works: Paper Recycling
https://www.youtube.com/watch?v=2c8YxMb0tlk