Greenfuel Colombia

Created in 1996, Coindagro has a proven track record in raw material trading. After having started with the trade of ingredients for animal food, the firm reoriented its core business in 2008 towards the collection and delivery of Used Cooking Oils (UCOs).

UCOs are further used for the production of biodiesel, turning waste into renewable energy. Compared to the production of biofuels from dedicated plantations, this process doesn’t imply land use or competition with other crops. In terms of greenhouse gas emissions, biodiesel made out of UCOs saves on average 83% of the CO2 equivalent emissions compared to conventional diesel. This makes this type of biofuel particularly interesting from an environmental point of view compared to, for example, biodiesel made out of rapeseed oil which only saves 38%.

The European Commission has set targets for the mixing of fossil fuels with biofuels, which drives the demand for such product. Moreover, its environmental footprint being much smaller than biodiesel coming from crops, biodiesel issued from UCOs is accounted for twice in European quotas. In Colombia, Coindagro is the first and only UCO provider that is certified for European standards. Collecting UCOs also avoids water pollution, since if not disposed of properly they can cause serious environmental damage and human health conditions.

In addition to its positive environmental impact, Coindagro has a great social impact for two main reasons. First, the company is a driver of the formalization of the recycling chain of UCOs. Used cooking oils are often resold to consumers on the black market. In Colombia, 37% of cooking oil comes from used oil that has been chemically treated to look clean. Chemically treated used oils are toxic for human consumption. Coindagro is committed to curbing this dangerous trend and regulating the processing of UCOs. Second, Coindagro helps raise public awareness on both pollution and sanitary issues when setting up new collection channels in restaurants, industries, and households.

Impact Finance supports Coindagro by providing the company with working capital to increase its volume. Once we have validated the team’s capacity to grow, we will support them in their project of expansion and of strengthening their supply chain.