AAK

As a leading producer of vegetable oils, AAK has taken an active role in maximising the utilisation of side streams from its production. Shea processing generates a range of side streams that were previously considered waste but are now transformed into valuable raw materials with applications in biogas, biofuel, cosmetics, and agriculture.
This case demonstrates how AAK has achieved economic growth, strengthened sustainability, and reduced its CO₂ footprint through innovative solutions and strategic partnerships.

We are committed to making our production more sustainable by fully utilising all resources. Side streams are no longer just by-products but an important part of our business model and a strategic focus area. Our goal is to create value for both our customers and the environment while contributing to a circular economy.

Niels Hedermann, AAK representative

Partners involved

To realise the potential of these side streams, AAK has established close partnerships with:

Customers:
Industrial companies in the energy sector (biogas and biofuel), agriculture (fertilisers and cow bedding), and the cosmetics sector. These customers benefit from products with lower CO₂ footprints and higher functionality.
Technology and knowledge providers:
The Danish Technological Institute, Food & Bio Cluster Denmark, and Aarhus & Aalborg Universities contribute research and technological solutions to identify and develop new applications.
Logistics partners:
Aarhus Port and other transport companies ensure efficient handling and distribution of side streams.

Opportunities and Challenges

Opportunities addressed by AAK and partners:

Increased value: Transforming side streams such as shea meal, fatty acids, and shea olein into commercially viable products creates new revenue streams and reduces waste.
Sustainability: Products from side streams improve the overall utilisation of the shea resource, reducing environmental impact per tonne of resource.
Innovation: New applications such as bioplastics, biofuels, and fertilisers open new markets and technological solutions.

Challenges to be addressed in realising the project:

Lack of overview: Previously, there was no comprehensive documentation of the different side streams and their potential uses.
Legislation and standards: Extensive documentation and certification are required to ensure compliance with regulatory requirements.
Logistics and distribution: Handling and transporting side streams requires tailored solutions to ensure efficiency and quality.
Market adaptation: Finding the right customers and applications for the side streams requires close dialogue and collaboration with industry partners.

Solution

AAK implemented a series of strategic initiatives to optimise side stream utilisation:

Mapping and documentation

A systematic process gave AAK a clear overview of the volumes, types, and properties of its side streams, including product datasheets and analyses of potential applications.

Research and development

Collaboration with technology partners led to innovative solutions, such as using shea meal for biogas production and Caritene (a natural carotenoid pigment extracted from shea fat) as a base for bioplastics and wood protection.

Market expansion

AAK expanded the sale of side streams to new geographic areas and applications through direct sales, agents, and tenders.

Circular economy

Side streams are used for multiple purposes in a circular value chain. For example, shea meal is first used as cow bedding, then for biogas production, and finally as fertiliser.

Results and Environmental/Climate Impact

Results:

Economic growth: Side streams contribute to increased revenues for AAK, while customers gain access to cost-effective and sustainable raw materials.
Customer satisfaction: Customers committed to Science Based Targets benefit from AAK’s Scope 3 CO₂ reductions, strengthening their climate goals and competitiveness.
New markets: The development of new applications has opened doors to industries such as biofuels, cosmetics, and agriculture.

Environmental and climate effects:

CO₂ reduction: Before the project, the shea value chain sequestered 1.5 million tonnes of CO₂ annually. Through side stream utilisation, AAK’s customers also save first-generation raw materials, further reducing CO₂ emissions.
Circularity: Resource use is reduced, and production waste is converted into usable resources, lowering environmental impact.

Conclusion

AAK’s work with side streams from shea production is an inspiring example of how a company can create value for both the environment and its business through sustainable initiatives. By mapping and optimising the use of its side streams, AAK has positioned itself as a pioneer in circular economy and resource optimisation. Their efforts have not only reduced CO₂ emissions but also created new economic opportunities for the company and its partners. This is a strong example of sustainable growth and innovation in practice.