Quarterly Commodities Outlook is available for free now.  Download your report  →

StoneX logo

Colombian Company Produces Eco-friendly Fuel Pellets From Coffee Husk

By: Diana Delgado, Contractor

Colombian company produces eco-friendly fuel pellets from coffee husk

 
  • DIana Delgado
  • Latin American correspondent
  • diana.delgado@stonex.com

Colombian company produces eco-friendly fuel pellets from coffee husk

Coffee Network (Bogota)- Garcabas, an innovative Colombian company, is using the residuals of coffee to produce fuel pellets, an eco-friendly fuel source made from coffee husk, which is being exported and sold to feed local industries’ boilers.

Garcabas is currently producing 10,000 kilos/day of coffee pellets. Around 60% of that production is being used to feed the boilers of coal-fired power plant Termopaipa, sugar cane producer Ingenio Risaralda, and the local unit of US paper company Kimberly-Clark. The balance 40% is being exported to Spain’s retailer Corte Ingles. The pellet used to heat homes is also shipped to Greece, Switzerland, Norway, Netherlands and the US, Mauricio Mejia, project manager at Garcabas, told Coffee Network.

But Garcabas seeks to expand capacity to 50,000 kilos/day, demanding an investment of US$300,000 to make inroads into new markets, use pellets as biofuel for drying coffee in Colombia, and expand into newer local industries.

Coffee pellets can be used to heat homes, dry coffee and feed industries’ boilers, Mejia explained.

Garcabas sent a proposal to the coffee growers federation FNC to secure a strategic alliance for the implementation of coffee pellets as biofuel for drying coffee in Colombia and marketing the product in the national and foreign market as a renewable energy source of high calorific value. Garcabas also requested FNC to sell to them the coffee musk growers generate to increase production of coffee pellets.

The increased production capacity would also allow to  tap new international markets.

Garcabas’ market research has identified that the European Union, which is imposing strict policies on renewable energy, could be a growing market as a major importer of sustainable biofuels.

Sweden, Finland, Denmark, and Norway have been leaders in the use of biomass for power generation, making them key markets for biofuels in general, Garcabas said in a report sent to the coffee growers federation.  In addition, the company eyes making inroads into Japan and South Korea, which are increasing their imports of biomass pellets for power production.

Coffee pellets to dry coffee

Garcabas is requesting the coffee growers’ federation to sell to them the coffee husk coffee growers generate. The company said the project will bring benefits to coffee growers who will receive a payment for selling their husk.

“As the coffee growers federation has access to large quantities of agricultural coffee waste, we are requesting the federation to supply the volume of raw material required for the manufacture of pellets at a very competitive cost. This reduces waste, contributes to the circular economy, and offers a sustainable waste management solution, in addition to favoring production costs,” Garcabas said in the report.

Garcabas is currently paying COP$240 pesos per kilogram of coffee husk.

By transforming waste into pellets, the Federation will generate additional income for coffee growers, which will strengthen the economy of the coffee sector. These residues, which until now did not generate direct benefits, will become a source of income, which will diversify the sources of income of coffee growers and increase the profitability of their operations, it added.

“This alliance generates additional economic income for coffee growers by integrating them into the value chain, using the residues from their crops, in the generation of an innovative, scalable and marketable product with the support of the National Federation of Coffee Growers,” Garcabas said.

A coffee grower could spend COP2,700 pesos per arroba drying coffee, about half the COP5,100 pesos they could spend on drying beans using gas.

Coffee growers will also benefit as the project directly impacts the health of coffee growers by using the eco-friendly biofuel in the drying process, reducing greenhouse gas emissions, improving air quality, and mitigating climate change.

Cleaner, cost-efficient product
 

The coffee pellets are more efficient and cost-effective than wood, while they are an eco-friendly fuel source than other polluting sources like coal with a higher heat value and lower ash content. Coffee pellets have a 35% higher heating value than hardwood and produce less ash, which means they burn longer and need less cleaning. According to the document, the coffee pellet has a higher heating caloric value than wood, gas or sugarcane.

“While sugarcane husk and bagasse have an efficiency of around 77% in terms of combustion, coffee pellets reach approximately 88%. This higher efficiency translates into a lower generation of ash and pollutants, allowing for easier cleaning of the boilers. This in turn reduces maintenance costs, CO2 emissions and can even lead to tax savings depending on government policies that promote the use of renewable energy sources, “Garcabas said.

By Diana Delgado

 

  • Coffee

This material should be construed as market commentary and represents the opinions and viewpoints of the author, and does not reflect tailored advice associated with any specific account.


The views are current only through the date stated and are subject to change at any time based upon market or other conditions, and StoneX Group Inc. (“SGI”) disclaims any responsibility to update such views. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. Past performance does not guarantee future results.


The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided.


References to certain OTC products or swaps are made on behalf of StoneX Markets, LLC (SXM), a member of the National Futures Association (NFA) and provisionally registered with the U.S. Commodity Futures Trading Commission (CFTC) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ and who have been accepted as customers of SXM.


StoneX Financial Inc. (SFI) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI is registered with the U.S. Securities and Exchange Commission (SEC) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Advisor. StoneX Financial (Canada) Inc. (SFCI) is registered in Canada and is a member of CIRO and CIPF. References to certain securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to certain exchange-traded futures and options are made on behalf of the FCM Division of SFI. Wealth Management is offered through SA Stone Wealth Management Inc., member FINRA/SIPC, and SA Stone Investment Advisors Inc., an SEC-registered investment advisor, both wholly owned subsidiaries of SGI.

R.J. O’Brien & Associates, LLC (RJO) is registered with the CFTC as a Futures Commission Merchant and is a member of NFA.


StoneX Financial Ltd (SFL) is registered in England and Wales, company no. 5616586. SFL is authorized and regulated by the Financial Conduct Authority (FCA) (registration number FRN:446717) to provide services to professional and eligible customers including: arrangement, execution and, where required, clearing derivative transactions in exchange traded futures and options. SFL is also authorized to engage in the arrangement and execution of transactions in certain OTC products, certain securities trading, precious metals trading and payment services to eligible customers. SFL is authorized and regulated by the FCA under the Payment Services Regulations 2017 for the provision of payment services. SFL is a category 1 ring-dealing member of the London Metal Exchange. In addition SFL also engages in other physically delivered commodities business and other general business activities which are unregulated and not required to be authorized by the FCA.


This communication is issued in the European Economic Area by StoneX Financial Europe GmbH (SFEG). StoneX is the trade name used by STONEX GROUP INC. and all its associated entities and subsidiaries. StoneX Financial Europe GmbH (“SFEG”) is a securities trading firm registered in Germany under Company No. HRB 80844.


StoneX APAC Pte. Ltd. (“SAP”) (Co. Reg. No 200616676W) is regulated as a Dealer (PS20190001002) under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 for purposes of anti-money laundering and countering the financing of terrorism. SAP is an “Approved International Trading Company” authorized to act as a “Spot Commodity Broker” under the Commodity Trading Act.


StoneX Financial Pte Ltd (Co. Reg. No 201130598R) (“SFP”) is regulated by the Monetary Authority of Singapore and is a Capital Markets Service Licence holder (for dealing in capital market products), an Exempt Financial Adviser (for advising on investment products and issuing or promulgating analyses/ reports on investment products) and a Major Payment Institution (for domestic and cross-border money transfer services).


SFP may distribute analysis/report produced by its respective foreign affiliates within the StoneX Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations Recipients should contact SFP at (65) 6309 1000 for any matters arising from, or in connection with, this webinar.


StoneX APAC Pte. Ltd. (“SAP”) (Co. Reg. No 200616676W) is regulated as a Dealer (PS20190001002) under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 for purposes of anti-money laundering and countering the financing of terrorism.


StoneX Financial (HK) Limited (CE No.: BCQ152) (“SHK”) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.


StoneX Financial Pty Ltd (ACN 141 774 727) holds an Australian Financial Service License (AFSL: 345646) for Dealing in Securities, Exchange-Traded Derivatives Contracts, OTC Derivatives Contracts and Foreign Exchange Contracts, and is regulated by the Australian Securities and Investments Commission.


StoneX Securities Co., Ltd. (“SSJ”) (Co. Reg. No 010401047199) is regulated by the Japanese Financial Services Agency as a Type-I Financial Instruments Business Operator (Kanto Local Finance Bureau (FIBO)No.291’), is a member of the Financial Futures Association of Japan for dealing and broking FX and FX Option transactions, and is a member of the Japan Securities Dealers Association for dealing and broking stock indices and option transactions.


Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. Past performance of any futures or option is not indicative of future success. Indicators are not a trading system and are not published as a specific trade recommendation. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.


The report/analysis herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.


© 2026 StoneX Group Inc. All Rights Reserved.

Satellite view of Earth at night showing illuminated cities across Asia and the Middle East

Discover more insights

Our subscribers have access to comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.

Related articles for Coffee

Perspective: Morning Commentary for August 12

August 12 – Today’s focus is on inflation, with the July consumer price index data out this morning. We have this, and one more month of data, ahead of the next Federal Reserve meeting. Of course, headlines from the Middle East and the Black Sea wars also have an ongoing influence on the markets. Stock futures posted gains this morning, while the VIX traded just below 15. The dollar index traded near 99.7. Yields on 10-year Treasuries are trading near 4.66%, while yields on 2-year Treasuries are trading near 4.18%. WTI crude oil is trading near $83, while Brent trades near $88 per barrel. The grain and oilseed markets rebounded from yesterday’s losses ahead of today’s highly anticipated WASDE crop report that is due out at Noon Eastern Time.

Arlan Suderman
Arlan Suderman
  • Grains & Oilseeds
  • Energy
  • Dairy
  • Renewable Fuels
  • Cocoa
  • Coffee
  • Cotton
  • Sugar
  • Meats & Livestock
  • Forest Products

Daily Coffee Report 8/11/26

Daily coffee report

StoneX Coffee Team
StoneX Coffee Team
  • Coffee

Perspective: Morning Commentary for August 11

August 11 – It was generally a quiet night for the markets until early this morning when a headline hit that Iran and Oman were close to reaching a deal. Stock futures rallied, while the dollar index followed Treasury yields lower, along with active selling in the energy- and food-based commodities. The headline had limited impact though in a world that has become skeptical of promises of peace. Stock futures remain steady to firmer at this hour, while the VIX trades near 16 – just above 2026 lows. The dollar index is trading near 99.8 this morning, after recovering from its early morning selloff over the following hour of trade. Yields on 10-year Treasuries are trading near 4.69%, while yields on 2-year Treasuries trade near 4.22%. WTI crude oil is trading near $82 per barrel at this hour, while Brent trades near $88. The grain and oilseed markets are mostly weaker, after failing to recover from this morning’s early selloff that started in the crude oil market.

Arlan Suderman
Arlan Suderman
  • Grains & Oilseeds
  • Energy
  • Dairy
  • Renewable Fuels
  • Cocoa
  • Coffee
  • Cotton
  • Sugar
  • Meats & Livestock
  • Forest Products
StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

Reach

With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.

Transparency

As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.

Expertise

From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.