Replacing palm oil with coffee grounds: Pioneering start-up offers “more sustainable alternative” from waste streams

30 Apr 2019 --- A Scottish firm specializing in high-value products derived from used coffee grounds claim they are developing pioneering environmentally-efficient processes that could lead to a sustainable and alternative ingredient to palm oil. The two entrepreneurs behind Revive Eco Ltd. say the potentially “game-changing” concept comes as some manufacturers are under pressure to find alternatives to palm oil and more ethically-driven consumers turn their backs on the controversial ingredient.

“The key components making up the oils we can extract from the coffee grounds are the same as that which make up palm oil, meaning we can offer industries a more sustainable, locally-sourced alternative, while not having to compromise on the quality or effectiveness of the ingredients they are using in their products,” Scott Kennedy, Co-Founder of Revive, tells FoodIngredientsFirst.

“Giving businesses, and therefore consumers, more sustainable alternatives to the materials they currently use is something we are on our way to achieving,” he adds.

Co-Founders of Revive, Fergus Moore (left) and Scott Kennedy (right)Revive works with waste management partners to collect used coffee grounds across Scotland. The company then converts them into natural oils which have wide-ranging uses across the food and beverage industry. They can also be used in the personal care and cosmetics sector and potentially within pharmaceuticals and household products as well.

Few ingredients come under pressure for alternatives as much as palm oil, which is regularly linked to deforestation and is highlighted by NGOs as ripe for replacement.

This market dynamic has led to a strong rise in products claiming to be “palm oil free,” with a 73 percent CAGR reported from 2015 to 2017 by Innova Market Insights. In terms of the top global market categories as a percentage of new food & beverage launches with a palm oil free claim in 2017, bakery (55 percent), spreads (7 percent) and cereals (5 percent) dominated.

Kennedy says that the spotlight is on palm oil “for all the wrong reasons” and so potentially providing a local and more sustainable alternative to all the industries that currently use palm oil is expected to be hugely successful.

The start-up plans to launch its first demonstration unit in Scotland later this year and has big plans for a roll out. “We will be expanding our operations at the start of next year, which will see us rapidly increasing the volume of coffee grounds we are collecting and processing,” he notes.

The shift towards a circular economy is very clear to see, especially in Scotland, the entrepreneur notes. “There are many other businesses like ours that are striving to utilize waste materials to create, new more sustainable materials and products,” he says. “This has been a truly exciting shift for us to witness, as we are firm believers that business is an incredibly powerful tool to bring about real change in the world,” Kennedy adds.

Coffee grounds, as with many other waste streams, possess huge natural value, and thus fit in naturally with this shift towards being more circular. “The coffee industry itself is definitely shifting, with more of a focus being placed on sustainable coffee, as well as initiatives to get rid of things such as single-use coffee cups,” he explains.

Kennedy and his fellow Co-Founder Fergus Moore, came up with the idea to tap into the waste streams of coffee grounds after working for years in hospitality while studying business at Glasgow's Strathclyde University. They saw first-hand the huge volumes of coffee ground waste that are produced.

Currently, Revive’s key collaborations are with cafes and coffee roasters, as well as resource management companies.

“We have great relationships with them to communicate on the positive impact they are having through their work with us,” Kennedy adds. “Our collaborations with resource management companies also enable us to service a much wider geographical area than we could possibly achieve at this point in our development. Their collaborations will continue to be of huge importance as we grow,” he notes.

The company is also working on some “exciting partnerships” with a range of different companies who will be trialing Revive’s ingredients within their products.

Palm oil is a highly controversial issue that splits opinion as many conservation practitioners, scientists, and consumers consider it one of the most significant threats to tropical biodiversity. Many others, especially palm oil producers, governments, and communities that grow the crop, rely upon palm for its high yields and financial returns. Consequently, there are different viewpoints about the interaction between sustainable land use and oil palm cultivation.

But the fact remains that it is consumed daily by billions of people around the world and is the most widely consumed vegetable oil. Palm oil is used in many foods from margarine, chocolate, cookies, confectionery to bread, instant noodles and much more while it is also used in cosmetic products including shampoo, soap and makeup, as well as in some cleaning products.

Revive has also secured £235,000 (US$305,118) of funding from the Zero Waste Scotland agency.

The company is also representing Scotland and Northern Ireland in the final of the Chivas Venture competition in Amsterdam next week and could receive a share of further funding. Twenty global companies will be competing for the prize.

“This a huge opportunity for us to compete in the final. Beyond that, we will be launching our demonstration unit later this year, and from there we will be rapidly increasing the amount of coffee we are able to process, as well as expanding our team significantly,” says Kennedy.

“Our goal is to make coffee the world’s first sustainable commodity and we firmly believe we are well on our way to achieving this,” he concludes.

By Gaynor Selby

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