MOE Circular Economy Demonstration Completed in Fukuoka

Value Way has completed the Ministry of the Environment (MOE) Circular Business Model Demonstration Project in Fukuoka City.

Project Overview

“Regenerative Coffee Model in Fukuoka” — A demonstration project that collects coffee grounds from convenience stores via forward logistics, dries and carbonizes them into biochar for use as soil amendment, while measuring and visualizing GHG emissions to drive consumer behavior change.

Circular Model

Coffee grounds discharge → Collection & transport → Drying → Carbonization → Agricultural application → GHG reduction visualization

Partners

• Fukuoka City — Environmental Bureau, Circular Society Promotion Division
• Kyushu Railway Company (JR Kyushu Group)
• Seven-Eleven Japan (Fukuoka Daimyo 1-chome and 9 other stores)
• anyCarry Inc. — Coffee grounds collection and transport
• Regenerative Coffee Association — Coffee grounds drying and carbonization
• NPO Circular Life Research Institute — Biochar agricultural application

Results

Environmental Impact

• Coffee grounds waste reduction: 93.6 kg (significantly exceeding the initial target of 60 kg, equivalent to 3–4 days of output from participating stores)
• Achieved GHG visualization across the coffee value chain
• Waste disposal scenario: +42 kgCO₂eq (incineration releases CO₂ into the atmosphere)
• Resource circulation scenario: -5.8 kgCO₂eq (biochar sequesters CO₂ in soil)
• Nationwide scaling potential: -630,259,744 kgCO₂eq/year (equivalent to ~140,000 households)

Social Impact

• Conducted consumer awareness surveys at coffee grounds collection stores
• 31 respondents were unaware of biochar resource circulation initiatives
• All 39 respondents agreed that coffee grounds circulation should be promoted nationwide

Economic Impact

• Waste disposal cost reduction: ¥1,710 (¥570/30kg × 3)
• anyCarry collection and transport fee: ¥11,550
• By-products: 4.3 kg wood vinegar and 3.3 kg biochar produced

Background: Japan’s Coffee Grounds Problem

Japan is the world’s 4th largest coffee consumer. In Fukuoka City alone, approximately 2.61 million cups’ worth of coffee grounds (about 5.2 tonnes) are generated daily, yet over 80% is discarded as waste. Fukuoka ranks 2nd nationally in per-capita coffee consumption.

What’s Next

• Legal framework for coffee grounds reclassification (currently treated as “waste”)
• Scaling collection volume through forward logistics across wider regions
• Designing multiple revenue streams including carbon credits and regional promotion
• Exploring new applications for biochar beyond soil amendment, including concrete aggregate substitution

Selected under MOE’s FY2025 Regional Resource Circulation Promotion Support Program — Circular Business Model Demonstration.