BFE is the process of extracting fibers from old cotton banknotes without degrading the overall fiber quality. Traditional offline shredding methods, cutting the banknotes into small fragments, inevitably damage the fibers at the cut points, making them less suitable for high-quality reuse. BFE uses an advanced turbo mill, generating air turbulences and mechanical forces, including pressure-shear stresses, intense accelerations, shock and impact effects, to tear banknotes apart rather than cutting them. This preserves the integrity of the fibers, allowing them to be repurposed in various industries, primarily in paper creation. The BFE process is efficient and the decomposition of banknotes environmentally friendly, operating without the need for water or chemicals.

BFE can be integrated into existing banknote destruction workflows

It is the practical, cost-effective solution that central banks need for managing unfit banknotes. By adopting this technology, banks can minimize waste by producing banknote dry, fiber-rich pulp, a versatile raw material, replacing conventional shreds Furthermore, BFE can even be integrated into existing banknote destruction workflows, ensuring that efficiency and security remain uncompromised. The dry pulp generated from unfit banknotes can be directly sold to recyclers, potentially cutting down cash management costs for Central Banks.

BFE's output creates a material which complies with the EU norm EN 643:2014 which is a key advantage. While the topic is technical, the official recognition of BFE material as regular paper waste is clear. This classification is a "true gamechanger," according to Storek, as it simplifies the disposal process, making it easier for institutions to integrate BFE into their operations by allowing the processed material to be disposed of via regular paper waste bins. This eliminates the need for specialized disposal companies and the uncertainty surrounding the final destination of shredded banknotes.

Security is another key aspect of BFE. The fibers produced through the decomposition process are drastically reduced in size, with fibers being 300 to 400 times smaller than the commonly used P5 standard according to DIN 66399 for high-security shredding. This size ensures that sensitive information remains protected even after the process of repurposing, making BFE a reliable option for institutions that need to balance environmental goals with strict security requirements.

 

„We must recognize banknotes lasting value“

For Storek, BFE is more than just a repurposing method; it's a catalyst for systemic change. He emphasizes that it represents a fundamental shift in how the currency industry perceives its role in addressing global environmental challenges. "We must stop seeing banknotes as disposable and recognize their lasting value," he asserts. This approach aligns with broader global efforts to meet international sustainability goals, such as the United Nations Sustainable Development Goals (SDGs).

G+D actively demonstrates the viability and practicality of BFE by using recovered banknote fibers to create various paper-based products and cardboard for internal use. These applications include G+D magazines, as well as cardboard produced in various formats for G+D logistics, general shipping, and spare part shipping. These internal uses are a powerful "direct proof of concept in the larger industrial style" (Storek), showing the circularity that BFE enables in a real-world setting.

While the potential of BFE is significant, we must acknowledge certain challenges for wider adoption. One key challenge is scalability: the economics of repurposing are often tied to volume, and the decentralized nature of banknote sorting and disposal in some regions can make it challenging to aggregate sufficient quantities of BFE material to be attractive to large-scale paper reusers. In addition, recovered fiber must be competitive with existing pulp prices in the secondary fiber market.

 

Repurpose banknote materials – a significant step towards a circular economy within the cash cycle

Despite these hurdles, Storek remains optimistic, emphasizing that “by adopting sustainable practices like BFE, financial institutions can lead the way in environmental responsibility while securing their operational futures". As central banks and policymakers increasingly navigate the evolving landscape of environmental regulations and face growing public pressure for sustainable practices, BFE stands as a beacon of innovation, offering a tangible solution that proves that sustainability and security can effectively coexist in the world of currency management. The ability to "close the loop" and repurpose banknote materials represents a significant step towards a more environmentally responsible and circular economy within the currency industry.