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Kaffe Bueno

Denne idé er en del af The Circular Construction Challenge – Rethink Waste

alejandrokaffebueno
Alejandro Franco
3. september 2018

Our solution consists of building Scandinavia's 1st Coffee Biorefinery, where we will receive SCG from selected cafés, hotels and offices (collected and delivered by waste management partner HCS) to extract lipids, proteins, sugars, antioxidants and other bioactive compounds to produce ingredients for the wellcare market.

Why has nobody done this before? After coffee is brewed, it has a high water content; making mould and bacteria growth happen within a hours, making logistics expensive, and compromising quality of raw material. This is why we developed a drying system in the form of a bin to place at our coffee-waste-suppliers, which dries grounds at origin within 2 hours using less than 2kW/h. It reduces logistic costs by 50%, eliminates risk of mould and bacteria growth and preserves all bioactive compounds. Patent in process. 

Once we receive SCG at the biorefinery, they go through a supercritical CO2 extraction, where we extract their lipid fraction in the form of an oil. We optimised this extraction process through an Innobooster project in collab with Danish Technological Institute. This oil is our first product, tapping into the active natural ingredients for cosmetics market (worth 2.5bn eur). Coffee oil exists in the cosmetics industry and it is priced between 250-400 euros per litre in wholesale. However, all existing producers of said oil extract it from green coffee or roasted coffee beans, meaning that their cost of raw material is attached to fluctuations in supply and demand, making their margins volatile and their prices high. 

We've calculated that through our circular model we can produce the first recycled coffee oil at at least 60% lower costs. Our raw material has no current market price, therefore our manufacturing costs are substantially lower. This allows us to price the oil at 120 euros per litre at wholesale to enter the market aggressively, while maintaining fixed margins, and lowering costs as quantity increases. 

The defatted coffee grounds remaining after oil is extracted are still a gold mine. After studying their composition, we realised they're naturally gluten-free, with high content of protein (4/9 essential amino acids) and insoluble dietary fibres. We realised it could be used as a 'coffee flour', allowing us to tap into the gluten free segment within the functional flour market, which is worth over 50 billion euros. 

Furthermore, we're already experimenting with the defatted grounds to further extract proteins, sugars and antioxidants. Antioxidants will be encapsulated and sold as supplements in the nutraceutical market. 

Proteins and sugars will be fermented to produce hyaluronic acid, another highly valued (1000 euros per litre wholesale) ingredient in the cosmetic industry, which, again, we can produce it 80% cheaper than current producers. All processes will be patented.

Initial target markets are Nordics, UK, France and Germany. These are the strongest and most rapidly growing markets in both industries mentioned above. Japan, South Korea and US expansions are in the business plan. 

Multiple researches have associated various compounds within coffee to treatments to skin and health diseases, such as eczema, type 2 diabetes and liver cancer. Our vision is to unlock coffee's health potential by upcycling products that will target such major health issues affecting people around the globe. 

In addition to the potential health benefits that we can target through our products, our circular model has a huge environmental impact. We've calculated that for every tonne of SCG recycled, 340m3 are averted from being released into the environment (this happens when SCG decompose in landfills or gardens).  Our goal is to recycle and process 60 tonnes per year in the first 2 years, and gradually scale up to 60 tonnes per month by year 4. In year 1 we will have averted the equivalent to 3.75 million miles driven by an average car in carbon emissions. 

Due to the roots of the founders, we are closely connected to the coffee farming community in Colombia. We work closely with a women-owned association that empowers 950 women farmers, to whom we will invest 1% of our profits into educational programs.

Apart from adding value to cosmetic formulators by offering a high demand product at lower prices, to society as a whole by reducing air pollution and creating jobs in country of operation, coffee farmers, we also create value to our partners that provide SCG to us. Depending on the volume of their coffee waste, we reduce around 20% of their waste management costs, plus we increase their brand image and value by linking them to sustainable initiatives.

Of course we couldn't do this alone. We have supportive partners behind us, such as: BC Hospitality Group (accepted to try drying system in all their hotels and will supply us all their coffee waste), AgroBusiness Park (biomass expertise and network), CAPNOVA (pre seed investor and accelerator), Danish Technological Institute (innovation partner).

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