Turning coffee grounds into energy

As an enterprise operating in the field of coffee production and processing, by applying the circular economy model – eliminating waste and pollution and recycling products and materials – Nestlé Vietnam can reduce nearly 13,000 tonnes of CO2 emissions each year. All of its coffee grounds and waste sand are recycled and reused. The use of biomass pellets alone helps the company save VND40-50 billion a year in boiler operations costs.

In addition, wastewater in the coffee production process is filtered, cleaned and reused for the boiler, saving more than 112,000cu.m of water a year, reusing 65 percent of recycled water.

Nestlé Vietnam saves VND50 billion a year by adopting a circular economy model

Khuat Quang Hung, Corporate Affairs Director of Nestlé Vietnam, explains that the value of the circular economy lies in creating value that has a positive impact on the community. The circular economy model is not only applied in the production chain but also throughout the supply chain, from cultivation, production to consumption.

The supply chain starts with coffee beans being purchased from farmers and then processed, with the post-processing coffee grounds used as biomass pellets, replacing more than 74 percent of the energy source for boiler operations.

In addition, the waste sand generated during the boiler operation is used to make unburnt bricks, and coffee sludge is used as microbial fertilizer. The unburnt bricks are used for commercial and residential construction.

Nestlé’s commitment in the world as well as in Vietnam is implementing a regenerative agriculture, moving from sustainable development to restoring, regenerating and recreating natural ecosystems.

To that end, Nestlé is also sharply reducing plastic waste. According to Nestlé’s calculations, the cost of paper straws is three times higher than plastic ones, while their selling price remains unchanged. However, in order to achieve sustainable development, all Nestlé Vietnam instant milk products since early 2020 have pioneered the use of paper straws for environmental protection, cutting nearly 700 tonnes of plastic waste.

The reduction of 700 tonnes of plastic per year will be converted into the value of reducing carbon emissions. With the current mechanisms and policies on the carbon market, businesses will eventually profit from investment in the circular economy. “This will bring great economic, environmental and social value to businesses, when Vietnam’s carbon credit trading floor will be formed and fully operational by 2028,” Hung said.