Circular Economy in Essential Oil Distilleries or Plant Extracts Facilities: Turning Waste into Value.
The essential oil industry (but also plant extracts facilities) has a hidden inefficiency problem. For every kilogram of essential oil produced, steam, plant biomass and water are generated and most of it is simply discarded. But every one of these outputs can become a resource.
Having worked with essential oil producers across Portugal, Italy, Angola and Peru, I've seen firsthand how much value gets left on the table.
- Steam and Heat Recovery
A great example of industrial symbiosis comes from Cavalese, Italy, where Bioenergia, a very complex company with also a pellet-fuelled energy facility that provides sustainable heated water for the surrounding community, redirects its excess steam directly to the distillery of Magnifica Essenza next door. Instead of being released into the atmosphere, that steam becomes the engine of essential oil production. A simple connection between two facilities with a powerful impact (and also, a practice that reduces costs of production).
- Spent Biomass
The spent plant material left after distillation still holds value. Depending on the species, it can be composted back into the farm (be careful with eucalyptus compost), used as animal feed, converted into pellets or biogas or re-extracted for secondary compounds like polyphenols and flavonoids.
- Aromatic water
Every distillation also produces aromatic water. These are not waste. Rose, lavender and neroli aromatic waters might have cosmetic and therapeutic markets. But they can go further: imagine a farm resort where the spa pool is fed directly by lavender water from that morning's distillation. Circular production meets the experience, tourism-related economy.
🌱 In the image is from the article 'Potential sources and methodologies for the recovery of phenolic compounds from distillation residues of Mediterranean aromatic plants. An approach to the valuation of by-products of the essential oil market – A review
' (2022) where these researchers are connecting some of these dots. 🌱

