Dutch bio-technology company Caffe Inc has announced a partnership with the Amsterdam Climate and Energy Fund (ACEF) to build a recycling plant for coffee waste in Amsterdam.

Founded by the city of Amsterdam, the ACEF provided funding for the project.

Coffee waste will be recycled at the plant into coffee oil for use in the personal care industry and into coffee blocks for use in bio-based materials, according to the 14 March statement.

Globally, 800bn cups of coffee are consumed each year, the company said on its website. However, only 1% of the coffee bean was used to make coffee and the remaining 99% ended up as waste.

“Coffee is something everyone can relate to. By making the circular case for coffee waste we want to inspire others to start working towards a circular economy,” Caffe founding CEO Josephine Nijstad said.

The Netherlands produces around 250,000 tonnes/year of coffee waste.

“We were… attracted by this opportunity to turn a very visible every day waste stream into manufacturable and marketable high quality products,” ACEF fund manager Casper Heijsteeg said.

The benefits of coffee oil in personal care and beauty products include its moisturising effect, UV-protection, anti-ageing qualities and anti-microbial effects, according to the Caffe website.

“The high amount of polyphenols and tocopherols (vitamin E) protects the skin from common detrimental external factors such as ultraviolet radiation, pollution and oxidative stress,” the company said.

“Essential fatty acids, mainly linoleic (omega 6) and linolenic acid (omega 3), play a major role as a building block of the skin barrier, repairing the skin from damage, improving water retention and keeping irritants out. Additionally, coffee oil contains caffeine which is commonly known for stimulating blood circulation, functioning as an anti-inflammatory agent and improving skin elasticity.”

Coffee oil could be used in skin care products, shampoos and conditioners, hand soaps, shaving products, sunscreen and cosmetics and other products, the company said.