The disposal of unfit banknotes does not end with secure destruction and briquetting. For central banks and printing works, banknote recycling is an increasingly important part of secure disposal, sustainable waste management and value recovery across the cash cycle.
Banknote shred recycling requires more than technical processing alone. Central banks and printing works must also consider economic, environmental and operational factors when selecting the most suitable route for secure disposal. The choice will depend not only on the physical properties of the briquettes, but also on local regulations, available infrastructure and broader sustainability objectives.
Although the physical composition, density and calorific value of the briquettes largely determine which applications are technically feasible, they are not the only factors that matter. Economic and environmental circumstances – such as local disposal fees, energy prices, the availability of recovery facilities, transport distances and applicable emission or landfill regulations – play a vital role in deciding which route is ultimately chosen.
Below you can see the banknote shred waste pyramid, which visualises the hierarchy of possible end destinations for unfit banknotes. At the bottom of the pyramid are the least desirable options, such as simple landfill, where no value is recovered and the environmental impact is highest. Moving upwards, the pyramid shows progressively more favourable routes, including energy recovery through incineration, use as an alternative fuel or process material in industries such as cement and steel, and finally material recovery options like composting of fibre-based substrates.
The higher a solution sits in the pyramid, the better it generally performs in terms of resource efficiency, carbon footprint and contribution to circular economy objectives. The pyramid can therefore help central banks, printing works and cash centres to benchmark their current practice and to identify more sustainable, value-adding alternatives for managing banknote shred waste.
Central banks and Printing Works therefore need to balance security, technical suitability, operational costs and sustainability objectives when defining their preferred solution. In practice, this means evaluating whether the briquettes should simply be disposed of, used for energy recovery or integrated into industrial processes as a secondary raw material or fuel.
Within this context, several alternatives are commonly considered for banknote briquettes, ranging from basic landfill disposal to more advanced options such as controlled incineration, use as fuel in cement or ceramic production, application as coolant material in steelmaking, or even composting in specific circumstances. Some of the most frequently applied options are:
Dumping banknotes in landfill recovers no energy or materials and provides no constructive benefit, while occupying valuable space for many years. Where landfill taxes or strict limits apply, it is also an increasingly expensive and restricted option.
When choosing a disposal or recycling method for unfit currency, organisations must therefore consider security, technical feasibility, economic costs and environmental impact. On all these points, landfill performs poorly: it wastes the material’s calorific value, cannot replace fossil fuels or raw materials and conflicts with most sustainability strategies. We therefore recommend avoiding landfill wherever possible and prioritising recovery or recycling solutions instead.
Banknote briquettes can be incinerated at standard temperatures (around 900 °C), with no need for special high-temperature treatment. Their high calorific value (1.6 × 10⁴ KJ/kg) makes them a valuable supplementary fuel to improve the combustion performance of other wastes, and they can also serve as an additional fuel in various industrial furnaces.
Cement is a key material in the construction of buildings, infrastructure and industrial facilities worldwide. It is not a naturally occurring mineral, but the result of heating limestone together with various additives in large rotary kilns. These kilns operate at very high temperatures and therefore require substantial amounts of fuel.
Because energy is a major cost driver in cement production, manufacturers continuously look for cost-efficient alternative fuels to replace part of their conventional fossil fuels, such as oil, natural gas or brown coal. A wide range of industrial residues is already used for this purpose, and briquettes made from granulated unfit banknotes can fulfill a similar role as a secondary fuel.
Cement plants must comply with strict emission regulations, and co-firing banknote briquettes does not alter these legal obligations. When processed in suitably equipped kilns, the briquettes can contribute to fuel substitution without compromising regulatory compliance.
Across the globe, steel production frequently relies on the basic oxygen steelmaking route, often referred to as the Linz-Donawitz (LD) process. In this process, pure oxygen is blown into the molten iron in the converter, releasing a significant amount of energy and producing so-called oxygen steel.
To control the temperature of the melt and absorb this excess energy, additional materials are introduced into the converter as cooling mass. These materials ignite and burn, using part of the surplus heat and helping to stabilise the process. Wood is commonly used for this purpose, but banknote briquettes offer a comparable alternative. Owing to their composition and combustion behaviour, briquetted banknote shreds can perform a similar cooling and energy-absorbing function in the steelmaking process.
Composting provides a further sustainable option for processing unfit banknote shreds, especially when the notes are predominantly fibre-based. Used in controlled industrial facilities, the shreds can be transformed into a stable compost that serves as a soil improver. In this way, the material leaves only a limited environmental footprint while contributing to the circular use of organic resources.
For central banks, composting offers an environmentally responsible alternative to conventional disposal routes. Natural fibre banknotes can biodegrade over time and add organic matter to compost streams, rather than ending up in landfill or being used solely for energy recovery. Although this is a relatively recent approach, it is already being implemented successfully.
To significantly reduce the carbon footprint of the cash cycle and avoid traditional landfill, the Central Bank of Colombia, for example, processes its unfit banknotes through industrial composting so that the plant-based substrate can be reused in greening and landscaping projects.
In recent years, many countries have introduced polymer banknotes into circulation, creating a need for different polymer banknote recycling and disposal solutions As these notes are made from a plastic-based substrate, they require different treatment at end of life and open up a distinct set of recycling and recovery options compared with fibre-based notes. You can find a more detailed overview of these possibilities in our dedicated article on polymer banknote substrates.
If you are looking for a secure and cost-efficient banknote recycling solution, or a reliable shred handling approach for unfit banknotes, our specialists will be pleased to discuss the right option for your operation.