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By turning by-products from one company into inputs for another, this industrial network showcases the benefits of resource sharing at scale. Illustration by Nagilmer via CC
Industrial circularity is a systems-based approach to production that eliminates waste by turning one company’s byproducts into another’s resources. The result is a closed-loop, regenerative network that benefits the environment, the economy, and the community.
The world’s first industrial symbiosis built on circular principles began in Kalundborg, Denmark, in 1972. Its core idea is simple: one company’s waste becomes another’s resource. Through local collaboration, participants share water, energy, and materials—cutting costs, reducing waste, and improving environmental performance. This model shows how community-based industry can drive both sustainability and economic growth.
What’s most striking is that Kalundborg’s collaboration wasn’t planned. This network of 17 public and private entities grew organically, without government direction. It began around a power plant, where neighbors started exchanging excess steam and water. The Asnæs Power Station supplied surplus heat for district heating and wastewater for local factories. Soon, nearby businesses—a refinery, pharmaceutical plant, and plasterboard manufacturer—joined in, finding value in each other’s byproducts. Over time, these practical exchanges formed a connected industrial ecosystem where every new link created more value and less waste.
"This approach not only improves operational efficiency but also strengthens community ties and supports broader sustainability goals. With proven success, Kalundborg’s model is inspiring similar initiatives worldwide, tailored to local needs."
"The success of Kalundborg’s industrial symbiosis hinges on robust public-private partnerships. Local government plays a pivotal role by providing critical infrastructure, such as water treatment facilities, and establishing regulatory frameworks that facilitate efficient resource sharing."
ARTICLE: Case Study: Kalundborg Industrial Symbiosis