Lup Colombia- Redefining trash

There is no glass recycling plant on the Caribbean coast of Colombia and the large amounts of glass waste produced by cruise ships, tourists and local use ends up in landfill or polluting marginalized communities. There is a network of approximately 1,800 recyclers that make their living from trash collection however, many still live in poverty. We are embracing the principles of the circular economy to create a centralized recycling plant for glass waste in Cartagena. We’ll be processing the waste into crushed glass, glass powders and aggregates that create economic, social and environmental value for various applications.

Our business model creates positive impact on multiple levels of value chain by maximizing economic benefits for the local community, reducing environmental impacts by focusing collection and distribution within a certain radius and creating by-products which replace less sustainable alternatives in the market.

Waste management is a global problem with huge environmental, social and economic implications. Unfortunately, those most impacted by inadequate waste management are people living in marginalized communities. As well, dumping waste doesn’t allow us to maximize its full value (i.e. the finite resources used to make the packaging). Millions of people are affected by waste management issues (i.e. lack of infrastructure) and the impacts of climate change.

In the recycling industry, glass is challenging to recycle due to high operating costs (i.e. transportation) and low value markets. Most glass waste is not recycled in the Caribbean coast of Colombia and landfill space is dwindling. Colombia signed the agreement at COP21 committing to reduce CO2 emissions by 20% by 2030. In order to comply with this agreement and increase waste diversion, bold initiatives that create measurable progress are required. 

For example, cement production is a large industry in Colombia and while cement comprises only 15% of the concrete mix, it is responsible for 96% of CO2 emissions. Besides addressing waste management and poverty alleviation, we’ll be creating products with the recycled glass that have higher impact potential such as reducing CO2 emissions within the construction industry.

Cartagena has high social and economic inequality. Besides the estimated 1 in 3 Cartageneros living in poverty, there has been an influx of refugees. We are part of a working group comprised of recyclers and foundations with a mandate to advance the circular economy agenda and to create a more equitable recycling system. 

Previously, recyclers sold glass waste to a company in Bogota (20 hours away) but this end-market was inconsistent, required the glass waste to be separated by colour (for bottle-to-bottle recycling) and to manually reduce the glass waste volume for transport. We can offer a higher price, a more reliable end-market and safer conditions (no volume reduction required) for the purchase of the glass waste. The purchasing price for the glass waste will be determined together with the recyclers. 

As a Benefit Corporation, we’ll be contributing a portion of our profits to our local partners to assist with recycling promotion and community projects. For direct employees, starting salaries will be 55% more than the Colombian minimum wage. More than creating jobs, we endeavor to provide the conditions (I.e. courses & mentorship) for those living in marginalized communities to achieve their potential and break the cycle of extreme poverty. 

Colombia has introduced a new Extended Producer Responsibility (EPR) law which obligates brands and producers to recycle the packaging that they put into the market by 2021. Under this law, we would act as the transformers and supply-chain managers for the producers to ensure that they meet (and exceed) their obligations.

Recyclers will collect glass waste from various sources (bars/restaurants, commercial companies, residential areas) and transport it to our plant. The processing technology will allow us to recycle the glass that enters (no colour separation required) into crushed glass, glass powders and light-weight aggregates that have a variety of applications including; as an additive in cement and concrete, water management and agriculture.

Between 2006 and 2016, the construction industry grew by 216% in Colombia and there are several large cement producers in the area. For this reason, our primary end-market will be additives for cement and concrete. Replacing a portion of cement with glass powder can significantly reduce the carbon dioxide emissions associated with cement and increases the mechanical properties (i.e. greater compression strength and lower water permeability) for concrete mixes. This application will also allow us to contribute to the objectives outlined in COP21. 

Secondary markets include the use of recycled glass in water management- pool filtration (replacing normal sand), potable water treatment and water storage (using light-weight aggregates). The use of light-weight glass aggregates in agriculture has resulted in promising research that demonstrates improved water retention capacity for crops, improved root structure support (through anchoring to the aggregates) and increased crop yield (through the introduction of nutrients to the soil). The end-markets are selected based on best practices, our own research and development and the market demand for the products in Colombia. In order to maximize benefits and reduce environmental impacts and costs, we’re focusing on glass waste sources and end-market clients within a certain distance from the proposed plant and will not be exporting end-products.

We are currently offering consulting services to support businesses in their sustainability efforts and to ensure compliance with environmental regulations. This will also allow us to promote recycling and connect recyclers to new collection sources. While we’ll only be processing glass waste, we are supporting improved logistics and infrastructure for the entire recycling system in Cartagena.

Currently, the only other solution for glass recycling is in Bogota (20 hours away) and the plant creates new beverage bottles and containers from the glass waste. While bottle-to-bottle recycling is important since it reduces the use of energy and virgin resources, it is not a cost effective nor practical solution for managing all glass waste. Our solution is innovative because it allows us to create products that can have positive benefits for various industries and applications, increasing the value of the glass waste significantly in its second life. 

Our business model focuses on infusing more economic value into Cartagena and the Caribbean coast since we will not be doing any importing of feedstock or exporting of final products. Instead, every step in the supply chain and the operational activities are being considered for the social, environmental, cultural and economic costs and benefits. While the technology is not new, the supply chain approach and product applications are being created to support the specific challenges and opportunities in Colombia.

We will be using a technology that has been successfully implemented in other countries to process the glass waste but does not yet exist in South America. In partnership with the company who developed the technology, we are designing the plant to have a processing capacity of 10 tonnes an hour and with a configuration that compliments the recycling system in Cartagena. The plant will include a cleaning line and machines for crushing the glass into various granular sizes. This technology doesn't require separation by colour and can handle higher levels of contamination (though less contamination is always preferred). As well, it can process different types of glass waste. The technology includes a software that will allow for different types of data collection and performance monitoring.

Here is how our solution for a centralized glass recycling plant in Cartagena addresses the problem: 

1. Glass will not have to be transported long distances to be recycled which reduces costs, logistics and environmental impacts. We have partnered with glass processing experts to assist with the plant design and operational considerations.     

2. Our project has received endorsement and support from local organizations and community leaders who are working to amplify the recycling system. Due to the reduced operating costs and higher value end-markets, we can pay the recyclers a consistent and fair price for glass waste collected.

3. Glass powder can be used as an additive in cement and concrete significantly reducing carbon dioxide emissions. The recycled glass products can also replace the use of finite resources (i.e. sand and other mined minerals) in various applications.    

4. The Colombian government has confirmed that more solutions are needed for glass waste management. Projects are also needed that support their new Circular Economy Strategy, Extended Producer Responsibility law and the COP21 agreement. Our solution is also aligned with many of the UN Sustainable Development Goals (see applicable SDG below) that Colombia like many countries has committed to implement.

As well, we have third party research that supports the approach and recycled glass applications we are suggesting and, we have conducted interviews/meetings with over 200 individuals and companies in order to better understand the waste system and valid the end-markets.

We have partnered with a local foundation and seven official recycling organizations (that represent approximately 1,800 recyclers) to collaborate on improving the recycling system and advancing conditions for recyclers. 

In the next year, we will continue to serve the population of recyclers as well as the residents of Cartagena (about 1 million people) since waste management and recycling is a public service that everyone benefits from. In particular, the thousands of Cartageneros that live in marginalized communities where glass waste is currently being dumped will have cleaner and safer living spaces. As well, our end-products will serve thousands of people in various applications (i.e. local farmers can use the recycled glass for agricultural purposes).   

Longer term our solution will impact millions of people, especially as we increase processing capacity and construct additional “recycling hubs” in other cities. Improved waste management and climate change mitigation initiatives have positive impacts for everyone either directly (i.e. job creation) or indirectly (i.e. more sustainable communities and secondary opportunities). As well, as a Benefit Corporation, we believe that we can lead by example and create more awareness and education on waste management and climate change that can generate a “ripple effect” for the industries, companies and customers that we work with.  

Our goal for the next year is to construct the glass recycling plant in Cartagena and process between 2000 to 2500 tonnes of glass waste per month. Within the next five years we aim to develop additional innovative end markets for the recycled glass products, increase plant processing capacity and expand glass waste collection to neighbouring cities. 

We believe economic sustainability is dependent on the environmental and social impacts of supply chain operations as well as investment in people and communities. Our start-up creates innovative solutions through the integration of various local and global stakeholders and the business model is replicable. For this reason, our longer term goal is to build additional recycling plants in strategic locations in Colombia and Latin America. 

Another goal of Lup Colombia is to support social entrepreneurship (particularly with a focus on the circular economy) and to encourage other businesses to see the value in increasing their own social impact.

Our biggest challenge is acquiring the financing to construct the glass recycling plant in Cartagena. As well, the project is dependent on governmental (local and federal) support to ensure that there is adequate compliance and enforcement measures for relevant laws (i.e Extended Producer Responsibility) and resources to amplify the waste management system.   

As recycling systems differ even within a country, identifying the key stakeholders, understanding the current system and building the relationships and incentives could be challenging as we expand our operations beyond Cartagena.

We are creating strategic partnerships that require everyone to share in the responsibility for solving the problem (i.e. government, brands, local organizations and large industries) but will also provide measurable value-add to each stakeholder. For this reason, we believe that we’ll be able to acquire the financing needed because our solution can clearly solve the previously mentioned challenges while also being economically viable. 

In terms of expansion, we anticipate overcoming these barriers the same way we have been doing so in Cartagena, by integrating ourselves within the waste and recycling system so that we can better understand the challenges and opportunities for all stakeholders. While we will continue to use the knowledge and resources accumulated from previous work experiences and our international partners, we know that it is important to understand the local context. Thus, respect and building trust with our local partners is key to achieving success as we expand.

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We have two people working full-time on the team and currently one summer intern. As well, we have key partnerships with several companies and organizations that are collaborating on certain aspects of the project with us. 

Founded in 2019, Lup Colombia (Lup) is the vision of founders Benedicte Faure and Caitlin Oliver, who have lived in Cartagena for two years. Benedicte and Caitlin are both passionate about environmental protection, social justice and the power of business to drive positive impact. 

Benedicte Faure (Materials Engineer): Benedicte has worked in the automotive industry, construction and maintenance for 6 years, including 3 years in sustainable building consulting. She also has experience in Life Cycle Analysis and has worked with the green building certifications LEED and BREEAM. Benedicte speaks French, English and Spanish. Based on her previous experience, her primary focus in Lup is end-market validation, product development and client acquisition.    

Caitlin Oliver (Environmental Engineer): Caitlin has 10 years of experience in sustainability with a focus on waste management, recycling, environmental policy and Extended Producer Responsibility (EPR). Before co-founding Lup, she did sustainability consulting for the hospitality industry and co-founded an environmental not-for profit near Cartagena. Caitlin speaks English and Spanish. Based on her previous experience, her primary focus in Lup is organizing the glass waste collection logistics, storage and processing considerations and collaborating with brands on EPR. 

 Our partners:

1. Glass processing technology company- besides owning the IP for the technology that we will be using in the plant, they're assisting with the plant design, providing operational considerations and best practice recommendations.  

2. Academic & Industry R&D- we are collaborating with several organizations who hold patents and have years of research experience in the application of recycled glass.    

3. Local stakeholders- we have created a mutually beneficial partnership with a local foundation (Fundación Cartagena al 100%) that is actively lobbying the government and working in the community to advance social, environmental and cultural sustainability in Cartagena.

Recyclers: We’re working in partnership with the official recycling organizations of Cartagena to assist with the recycling logistics and offer a safer, more consistent end-market for glass waste. We can also pay a higher $/Kg for the glass waste compared to traditional glass recycling models. As our company grows, we’ll be able to offer more support and incentives to the recyclers through our Benefit Corporation fund.     

Brands and Producers: We’ll be the supply chain managers for glass packaging waste helping brands and producers to be in compliance with the Extended Producer Responsibility Laws which also allows them to maintain a good brand image and create a positive impact in the communities that they profit in.  

Clients (services): We’re offering consulting services to businesses and the hospitality industry to assist them with environmental compliance and sustainability regulations. Corporate social responsibility and “eco-certs” are increasingly more important for their customers and we offer an opportunity to generate positive social and environmental impact within their business operations (which also ensures long-term economic sustainability). 

Clients (products): As previously stated, our primary end-markets are the construction industry, water management (treatment and storage) and agriculture. We’ll be selling our products through B2B and B2C channels. Depending on the application, the products have desirable characteristics such as; improved mechanical properties, significant carbon dioxide emission reductions, improved water retention capacity and soil integrity for crops and even replaces finite resources. End-market applications were selected to offer competitive prices compared to the alternative options.

We are currently offering consulting services to support businesses in their sustainability efforts and to ensure compliance with environmental regulations. This will also allow us to grow our team and strengthen the recycling system in Cartagena while we continue to secure the investment needed to construct the glass recycling plant.

When the recycling plant is constructed, our primary revenue stream will be recycled glass products (through B2B and B2C). However, we will augment our profit through the continuation of environmental services and consulting.

While prize funding is always welcome, as a newer start-up we are applying to Solve primarily to gain access to a larger community of peers and industry experts. As we’re working within multiple systems through the implementation of a new business model, our project is dependent on creating meaningful collaborations with various stakeholders. We believe that there is an incredible potential for partnerships and strategic support through an association with the dynamic Solve community. We’re ready to accelerate our project to the next level!

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We are looking to partner with a diverse range of stakeholders from local foundations/not-for-profits (with environmental and social impact focuses), government, like-minded businesses (i.e. social enterprises), industry experts (i.e. manufacturing, construction and building materials, agriculture and water treatment) and producers/brands.

Specifically, we want to establish mutually beneficial partnerships with the following glass producers (and their affiliated brands):

• Diageo

• Pernord Ricard

• Coca Cola/Coca Cola Femsa  

• Pepsico & Postobon 

• Anheuser-Busch InBev & Grupo Modelo 

• Heineken

• Independent liquor brands that sell into Colombia

As one of our end-markets is recycled glass as additives for cement and concrete, we are interested in partnering with cement producers/building materials companies. Some examples include:

• Cemex

• Argos

• LafargeHolcim

• Ultracem

We would like to work more closely with the local and federal governments in Colombia (i.e. the Ministry of Environment and the mayor’s office in Cartagena) to support their Circular Economy vision.    

Finally, we have been really inspired by the expert Circular Economy knowledge and resources from the Ellen MacArthur Foundation and we would love to collaborate with them in the future. 

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Our business model follows the principles of the circular economy by minimizing the waste that goes to landfill or pollutes natural spaces and extracting the maximum value from it. 

1. Creating a recycling system for glass waste which is traditionally difficult to manage and for which there is currently no local solution.

2. Providing support to enhance the efficiency of the recycling system in Cartagena 

3. The technology requires less energy compared to traditional glass processing machinery. There is also no water used during the treatment process and we’ll be installing solar panels to supply some of the plant’s energy needs. 

4. All glass waste sources and end-markets will be local to reduce transportation costs and environmental impacts. 

5. We created a “ Education hub” which provides information about the circular economy and various guides. 

6. As a Benefit Corporation, a % of our profits will be invested into our employee’s well-being and community initiatives. 

Transitioning to a circular economy is also about establishing diverse partnerships with others who are committed to developing innovative solutions. In collaboration with our partners, we would use the GM prize to create infrastructure for our recycling pilot (i.e collection containers), to lobby the government to incentivize glass recycling and to assist the recyclers to improve collection logistics (i.e. developing contracts with businesses). We would like to compile all of the baseline data we are collecting into a useful tool for not only our strategy but, to support others in determining circular economy opportunities in the Caribbean Coast.    

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