High-Value Chemicals from Coffee Waste: A Technology That Transforms Coffee By-Products into a Sustainable Palm Oil Substitute

Coffee is one of the most widely consumed beverages in the world, with Danes alone drinking nearly four billion cups a year. However, only about 1% of coffee beans are actually used during the brewing process, leaving behind an enormous amount of waste, much of which ends up in landfills or incinerators. Addressing this challenge, the Danish biosciences company Kaffe Bueno has developed an innovative solution to upcycle these coffee waste products.

The start-up has created a groundbreaking biorefining technology that transforms used coffee grounds into sustainable, high-performance biochemicals. Through extensive research and development, Kaffe Bueno has uncovered unique biochemical properties in coffee that make it ideal for a range of applications, from personal care and nutrition to agriculture.

One of the company’s flagship products, KAFFOIL, serves as a sustainable alternative to palm oil. By offering this alternative, Kaffe Bueno helps reduce reliance on oils from unsustainable sources, while also addressing the growing global demand for palm oil-based ingredients. This initiative aims to alleviate the pressure on tropical rainforests and support legitimate palm oil producers who follow sustainable practices.

Kaffe Bueno’s products, including KAFFOIL, KAFFAGE, and KAFFAIR, are already available for use in personal care formulations as emollients and surfactants—substances that soften the skin and reduce the surface tension of liquids, respectively. These coffee-derived ingredients offer eco-friendly alternatives to carbon-intensive chemicals, which are urgently needed to combat environmental impacts.

Kaffe Bueno has embedded circular economy principles at the core of its business model, maximizing the value extracted from discarded coffee grounds at competitive costs. Juan Pablo Medina, co-founder and CEO, explains: “By transforming coffee by-products into high-performance ingredients, we’re not just diverting waste from landfills; we’re unlocking the hidden potential of coffee. We’ve discovered the remarkable biochemical properties of coffee that make it ideal for applications far beyond your morning cup. It’s about expanding the toolbox of sustainable options with alternatives that perform just as well—or better—and letting the market decide.”

The company has recently launched a demonstration facility in Copenhagen to refine its processes and develop its second-generation product range. This pilot facility is the precursor to a 50,000-ton biorefinery set to launch in 2026, which will scale production to meet growing market demand. This significant milestone was made possible by a €6.2 million investment in January 2024 from industry leaders such as Borregaard and the European Innovation Council Fund, highlighting confidence in the potential of this innovation to transform global supply chains.

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