Brewcycle: From beer waste to sustainable fertilizer
Summer Semester 2024 / Brewcycle
EXECUTIVE SUMMARY
An average Austrian consumes 200 liters of beer per year, generating 250,000 tons of organic waste annually. Brewers often discard this waste, incurring landfill taxes. However, this waste still holds potential and can be transformed into a sustainable fertilizer.
Over the last few years, farmers have faced financial struggles, due to increasing fertilizer prices. This often leads them to fertilize less, or not at all, resulting in lower crop yields and higher prices in the grocery store.
Goal
Our mission is to transform beer waste into a sustainable fertilizer, benefiting both brewers and farmers by reducing waste and improving crop yields, while returning the value the waste holds back to nature.
Methodology
We utilized the lean start-up method, iterating our business model five times. We validated our solution through interviews with brewers, farmers, and technical experts, as well as a survey via Landwirtschaftskammer's newsletter. We conducted a market and competitor analysis to understand fertilizer industry trends, pricing, and market potential. A financial model was developed to project revenue and profitability over the next three years.
Results
Research and tests confirm that beer waste can be converted into a 100% organic fertilizer, suitable for conventional and organic farming. Our process is simple: We take the beer waste from the brewery and transport it to the University laboratory, where it is analyzed, as different beers contain different nutrients. We, then, enhance its nutrient profile and stability and transport it to the farmer, who can benefit from a cheap and qualitative fertilizer. Tests on corn seeds showed that our fertilizer performs as well as conventional ones. We partnered with 7sternbräu for beer waste and omni.farm for real-world testing, both reporting positive results.
By analyzing the competition, we found that many affordable fertilizers compromise on quality. The total available market (TAM) for fertilizers in Austria is approximately 198 million euros, with our serviceable available market (SAM) in Burgenland, Vienna, and Lower Austria estimated at 36.6 million euros. By 2028, we aim to capture a 5% of this market, achieving a serviceable obtainable market (SOM) of 1.83 million euros. Revenue is generated from direct sales to farmers, with costs related to transformation, transportation, and storage. Our strategy is to offer a cost-effective, high-quality alternative fertilizer. Our unique advantage lies in providing a product that not only competes with conventional fertilizers in performance, but also offers added benefits like improved soil fertility and disease resistance due to its micronutrient content.
Transforming beer waste into fertilizer supports sustainable agriculture but also provides a practical solution to the waste disposal problem faced by brewers. This process supports a circular economy by minimizing landfill usage and greenhouse gas emissions. By repurposing beer waste, we help brewers reduce their disposal costs and environmental footprint, contributing to a healthier planet.
Looking ahead, Brewcycle plans to expand its operations by partnering with more breweries and entering new markets within and beyond Austria. We aim to develop additional products derived from other brewing by-products, further enhancing our portfolio of sustainable agricultural solutions. Continuous research and development will remain a priority to ensure our products meet the highest standards of quality and effectiveness.
Cooperation Partner
Brewcycle
Contact Person
Angeliki Sitara - angeliki.sitara@tuwien.ac.at
Student Team
Angeliki Sitara
Filip Dvoracek
Miriam Pratter
Nathan Nduefuna
Philip Kohlbecher
Project Manager
Thomas Pannermayr
Caroline Kunesch
Dragos-Cristian Vasilescu