Muenzer Bangla Private Limited: A green player in the greasy world of used cooking oil business

If you want perfectly crisp, golden samosas, you need to fry them in about four cm deep oil at 175 degree Celsius. But what do you do with the leftover oil? You either use them to cook another dish, or throw them out. 

However, both are harmful - the first one is harmful to your health, and the other for the environment. Reusing cooking oil can increase trans fat in the oil and raise your cholesterol levels. If not disposed of correctly, it can block the sewage system and contaminate water and soil. 

Every year, Bangladeshis consume around 20 lakh tonnes of edible oil. 90% of the demand is met by importing soybean seeds, crude soybean and palm oil from countries like Argentina, Brazil and Indonesia.

In 2021, the Council of Palm Oil Producing Countries revealed that the per capita consumption of edible oil had increased in the country by 20% in the last five years. 

Used cooking oil, also known as UCO, meanwhile, has a life of its own. Local collectors buy UCOs from big hotels and restaurants and sell them to smaller ones. The oil is filtered and bleached with chemicals to look 'clean'. A small portion is used to make crude or unpackaged soaps. 

"Most of the fried things on our street side restaurants are probably made with this used oil. Snacks like chanachur and lachcha shemai are also made with it," claimed Goutam Abhee Barua, chief financial officer at Muenzer Bangla Private Limited. 

Photo: Noor A Alam

Muenzer Bangla Private Limited, a subsidiary of Münzer Bioindustrie GmbH in Austria, began its journey in Bangladesh three years ago. The company collects used cooking oil from more than 1,200 FBOs (Food Business Operators, which include restaurants, hotels, manufacturers etc) in the country to make biodiesel. 

In 2023, Muenzer Bangla has collected 70 tonnes of UCO so far. In October 2022, they collected as much as 100 tonnes. 

This year they are forecasting an additional 2,000 restaurants to be added to their portfolio, which already consists of companies like Burger King, Gloria Jean's, BFC, Pan Pacific Sonargaon, Radisson, Danish, Ispahani and many more. 

Currently, Muenzer Bangla has offices in Dhaka and Chattogram with a team of 47 employees. There is also a warehouse in Cox's Bazar.

"Firstly, we want to stop UCO from entering the food chain. Some of these unorganised local collectors even make counterfeit mustard oil, ghee etc from it," said Abhee, adding, "secondly, we want to ensure used oil is disposed of correctly. One kilo UCO is sufficient to pollute an entire swimming pool. Our cleaners often complain that this oil used multiple times has a rotten smell. Imagine putting that in your body!"  

Why convert to biodiesel?

Biodiesel is considered better for the environment because of lower carbon emission. With increased focus on climate change and its consequences, our country may have to adapt to green fuel soon. 

"Europe now has a mandate where diesel has to be sold with 7% biofuel mixed in it. Petrol or octane has to be sold with 10% ethanol mixed in it. In Bangladesh too, soon, there may be similar instructions to use biofuel with fossil fuel to reduce carbon emission," said Abhee.    

One litre of UCO produces 900 ml of biodiesel and 100 ml of glycerin and other by-products. Glycerin is widely used in medication and skin care products. 

With an increase in the world's population and consequently the demand for energy, resources, and goods, it is important to look into alternative sources of energy at an early stage. 

Investments into and adaptation of green fuels enable countries to reduce their overall impact on climate, while providing current and future generations sustainable energy. 

"The great thing about biodiesel is that it can be produced from a multitude of sources, not only used cooking oil but alternative feedstock as well. When used, biodiesel emits less harmful greenhouse gases, thus contributing to meeting the targets of the Kyoto Protocol put forward by the UN," read a statement from Münzer Bioindustrie. 

In South Asia, Münzer first established business in India. The market in Bangladesh looked promising with its current economic growth. 

According to the company, "Shortly after opening Münzer Bioindustrie's subsidiary in Mumbai, India, we recognised the potential of the Bangladeshi market. Given the close geographical proximity, coupled with Münzer's one-stop, ISCC certified used cooking oil collection process, the decision to join the Bangladesh market came easily."

Abhee said, "The company set up business in Bangladesh to get an early advantage as there are no international players in the market for UCO or biodiesel at the moment. In future, we may open a biodiesel plant as well."   

Collecting the UCO

It takes a lot to convince restaurants to give their UCO to Muenzer because local collectors pay a good price for them. Bangladesh Food Safety Authority has allowed the company to buy UCO at Tk55 per litre from Dhaka, Chattogram, Sylhet and Mymensingh Division. The buying price sometimes varies based on quantity, strategic reasons etc. 

Local collectors, on the other hand, offer as much as Tk80 for every litre. Muenzer cannot offer such a price because it has to pay overhead costs, wages etc. The company is currently in a burn mode and has not made any profits since beginning its operations in Bangladesh.

After an agreement is signed between the restaurant and Muenzer, the logistics team sets up branded collection drums in the restaurant. When the drums are filled, the restaurant notifies Muenzer and a collection team empties the drums and puts fresh ones in their place.    

Photo: Noor A Alam

There is also a system where collection dates can be set. The restaurant is notified by Muenzer and the collection team is sent accordingly. 

"We are an ISCC certified company so we maintain 100% traceability. Meaning, how much has been collected from a restaurant and how much was exported etc - everything can be known," said Abhee. 

After the UCO is weighed and taken away, the restaurants are paid by the Meunzer finance team through the banking channel. The oil is stored in Muenzer's godown in Meradia Road, Banasree, until they are shipped off to Austria in containers. 

Abhee informed us they have permission from Bangladesh Food Safety Authority to collect UCO from restaurants. 

What lies ahead

The government is working on a policy to regulate the proper use of edible oil and trans fat content in restaurants. According to the Food Safety Hygiene Regulation 2018, used cooking oil is a form of waste from the food industry and hence cannot be reused. Doing so is a violation of the law. 

But restaurants in the country hardly seem aware of it. The negative implications of reusing cooking oil do not seem to bother them. But Muenzer wants to raise awareness about UCO and the various health complications that arise from its use.

"Once we were in a meeting with a big hotel chain, one of the top in Bangladesh. After hearing our offer price, they said, 'do you know how good our oil is? We only use it twice and immediately throw it out'," recalled Abhee while talking about how people, especially owners of food businesses, need to change their mindsets about UCO.  

Photo: Noor A Alam

Fahimul Alam Khan, strategic manager at Muenzer Bangla said, "Every house in the city has a garbage disposal system. We pay the city corporation every month for cleaning our waste. UCO is also a waste. Doesn't matter how much money one makes from its business, it will come back to harm us." 

As part of their CSR programmes, Muenzer Bangla has organised multiple campaigns in universities in Dhaka. In cooperation with the Food Safety Authority, it also held awareness campaigns for restaurant owners in Chattogram and Cox's Bazar. 

Abhee suggested the government should formulate a guideline about collecting UCO and give licence to those who can engage in it. 

In future, Münzer Bioindustrie GmbH wants to expand its activities all over Bangladesh, not only in collecting used cooking oil from restaurants, but also from households.

Furthermore, they plan on launching a campaign with FoodPanda where they want to drive the transformation towards higher standards of cleanliness and health in line with the UN Sustainable Development Goals