What if waste wasn’t the end of the story, but the beginning of a new one? Around the world, companies are discovering that what they throw away can become the raw material for someone else. This is the idea of industrial symbiosis — a powerful way to bring the circular economy to life.

And while the word industrial often makes us think of pollution, here it takes on a new meaning: industry learning from nature, building connections, and proving it can be part of the solution.

Industrial symbiosis: when one company’s waste becomes another’s resource

August 28, 2025 · 4 min read

The Green Loop Blog > Industrial symbiosis: when one company’s waste bec...

Industrial symbiosis begins here — turning scraps into resources.

What is industrial symbiosis?

Industrial symbiosis is a deceptively simple idea: companies collaborate to share resources so that the byproducts of one become the raw materials of another. Instead of every industry operating as a closed silo, they form a network, exchanging energy, water, materials, and knowledge.

In the traditional “linear economy,” the path is simple: take, make, dispose. Resources are extracted, transformed into products, consumed, and then thrown away. But this model ignores a simple truth: nothing in nature works this way. In a forest, fallen leaves nourish the soil, feeding the next cycle of growth. A predator’s waste feeds scavengers and decomposers. Every output is an input.

Industrial symbiosis brings this ecological wisdom into the world of human industry. For example:

• Excess heat from factories can be redirected to warm homes or greenhouses.

• Spent grain from breweries can feed livestock or become a base for new food products.

• Coffee waste can be turned into fertile ground for mushroom cultivation.

• Chemical byproducts can find new life as construction materials.

It’s a shift in mindset — from competition for scarce resources to cooperation for shared abundance. And the beauty of it is that it works not only for the planet, but also for businesses and communities.

Industrial symbiosis reuses not much today, but its future is limitless.

Real-world examples

The most famous story of industrial symbiosis comes from Kalundborg, Denmark, often described as the birthplace of this concept. What started in the 1960s as informal agreements between neighbors grew into the world’s first large-scale industrial symbiosis network.

Here’s how it works: the local power station sends its excess steam to nearby pharmaceutical and food companies, which in turn send their own byproducts — like yeast slurry and wastewater — into new cycles of use. Gypsum, a byproduct of desulfurization at the power plant, is delivered to a wallboard manufacturer. Local farms use excess sludge as fertilizer. Even the town itself benefits, with households receiving district heating powered by industrial steam.

The results? Less pollution, millions saved in raw materials and energy, and a resilient local economy where businesses support each other’s survival. Kalundborg has become a model studied worldwide, proving that when industries cooperate, everyone wins.

This isn’t just a Danish success story. The UK’s National Industrial Symbiosis Programme (NISP) has helped thousands of companies identify “resource matches.” Over a decade, NISP reported diverting millions of tons of materials from landfills, reducing CO₂ emissions, and generating billions in financial benefits.

On a smaller scale, the principle is alive in countless grassroots initiatives:

• Brewery waste turned into high-protein flour for baking.

• Construction debris repurposed into sustainable furniture and art.

• Plastic offcuts from factories transformed into durable building materials.

Even startups are pushing the boundaries with alternative materials born from waste: pineapple leaves spun into vegan leather, algae converted into biodegradable packaging, and mushroom mycelium shaped into everything from insulation panels to lampshades.

What all these stories show is that symbiosis doesn’t need to wait for giant corporations or government mandates. It can begin anywhere, as soon as people start asking: who else could use what we no longer need?

Fuwa3e's great story of reusing pineapples skin and core to make soaps – Business Insider.

Why it matters & what’s next

Industrial symbiosis matters because it tackles sustainability from multiple angles at once.

• Environmental impact: By reusing waste streams, fewer raw materials need to be extracted, and fewer emissions are released into the atmosphere. Landfills shrink, and pollution is prevented at the source.

• Economic savings: Companies reduce disposal costs and raw material expenses, often discovering entirely new revenue streams from what was once considered worthless.

• Community resilience: Local networks become more self-sufficient, less dependent on fragile global supply chains. When one business supports another, the whole region becomes stronger.

Still, the road isn’t without challenges. Logistics — moving waste from one place to another — can be complicated. Regulations don’t always adapt quickly to innovative exchanges. And some businesses hesitate to share information about their byproducts, seeing it as a competitive risk.

But the future is promising. Digital platforms are emerging to act as matchmakers, connecting industries with complementary needs in real time. Governments are beginning to recognize the value of circular economy models and offering incentives for companies that adopt them. And on the ground, communities are creating their own micro-networks of symbiosis, turning what once was invisible waste into visible value.

In essence, industrial symbiosis is the bridge between today’s wasteful habits and tomorrow’s regenerative systems. It shows us that sustainability is not just about consuming less — it’s about designing smarter connections.

A tree growing on a fallen nurse log in Fairy Lake, near Port Renfrew, Vancouver Island, BC, Canada. @rgcervi

The bottom line

In nature, waste doesn’t exist. Every leaf, every drop, every breath finds its place in the cycle of life. Industrial symbiosis brings this truth into our human-made systems, reminding us that waste is nothing more than a misplaced resource.

For too long, we’ve seen industry as the enemy of the Earth. But this vision shows us another path: one where factories, farms, and communities act more like ecosystems, where every byproduct finds a new purpose. The industry itself can transform — from extractive to regenerative, from linear to circular.

Industrial symbiosis is more than a clever concept. It’s a mindset shift, a reimagining of what’s possible when we choose connection over isolation. And perhaps the most inspiring part is this: the solutions we’re looking for are already here, waiting in the places we least expect — in the steam, the scraps, the grounds, the offcuts.

The circle is already turning. All we need to do is join it.