Agave Loop Awarded for Agave Waste-to-Energy Technology

Sustainability-driven innovation is gaining momentum in Mexico’s hospitality and agave spirits sectors as initiatives such as the Torres Brandy Zero Challenge encourage circular economy solutions that repurpose industrial waste and reduce environmental impact. Projects like Agave Loop, which converts agave bagasse into clean-energy briquettes, highlight efforts by startups and industry players to address waste from tequila and mezcal production. The trend underscores mounting pressure on Mexico’s food, beverage and hospitality industries to adopt scalable sustainability models, though limited regulation and investment continue to constrain the growth of the country’s green startup ecosystem.

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The Torres Brandy Zero Challenge was held in Mexico City, recognizing sustainability-focused projects designed to transform the hospitality and beverage industries through replicable environmental and social solutions. The competition, organized by Torres Spirits, held its fourth local edition at Faunna Rooftop, where five finalists presented initiatives aimed at reducing the environmental footprint of the gastronomy and beverage sectors. The jury selected Agave Loop, a project developed by Elisa Villarreal, as the Mexican winner.

Agave Loop focuses on converting agave bagasse — one of the most abundant waste products generated during the production of agave-based spirits — into ecological briquettes capable of generating clean energy. The model aims to transform a byproduct that can contribute to environmental contamination into a viable energy source while creating economic opportunities in agave-producing regions.

Members of the jury highlighted the scalability of the project as a key factor in its selection. The concept could potentially be implemented in multiple municipalities and valleys where agave-based spirits are produced, expanding its environmental and economic impact across the industry. The broader evaluation criteria included environmental impact, project feasibility, long-term sustainability potential and the ability to address specific social and environmental challenges in the hospitality industry.

The local competition forms part of a broader international initiative created to encourage innovation in the hospitality sector by promoting projects capable of reducing environmental impact while strengthening social value within business models. Organizers also highlighted the growing role of opinion leaders and content creators in promoting sustainable practices within the sector. 

According to Christian Gascón, area manager for Torres Spirits in Mexico and Latin America, sustainability is increasingly becoming a central value indicator within the industry. “Luxury is the social impact that influencers generate around sustainability. We reward the courage to rethink a business model that creates sustainable jobs and turns waste into opportunities. We reward projects that can be replicated. We make a revolution, but if it is replicated globally we can change the world,” Gascón said.

Four additional finalists presented projects focused on environmental protection and social responsibility in the hospitality sector. Participants included Jorge León from Alfonsina, Lucía and Audrey from the Brindemos Bienestar initiative, Estéban Cabrera from Enzo, and Daniel Delgado from Verde & Lab.

The judging panel included Gerardo Vázquez Lugo, chef, Nicos; Marco Beteta, a Mexican gastronomy critic; Erica Valencia, founder and CEO, Ectagono and Ectarea; and Mariana Jiménez, CEO, Red de Bancos de Alimentos de México.

With the national win, Agave Loop will represent Mexico in the global final of the competition scheduled for April 18 in Barcelona. There, Villarreal will compete against winners from other participating countries for recognition as the most sustainable hospitality project and a prize of EU€30,000 (US$34,816).

Agave Loop is not the first Mexican project focused on developing ways to recycle and repurpose the waste produced by Mexico’s tequila and mezcal industries. In Sept. 2025, Mario Romero, Managing Director, Impact Hub CDMX, told MBN about Kova, a Oaxacan-based startup. Romero detailed that the company has successfully created a technology that allows mezcal distilleries to treat their wastewater, which contains waste products inherent to mezcal distillation that could not be properly treated prior. After winning Climathon Oaxaca, part of the national Climathon competition series, Kova won a grant from Impact Hub to go to Madrid for two months to further develop its technology. Now, the company works with major distillers in Oaxaca to treat their wastewater and runoff. 

Mario Romero: Mexico’s Sustainable Startup Sector is Evolving, but Faces Challenges

According to Romero, while there is a growing understanding of the market, and more financial support, the Mexican sustainable startup sector still has a long way to go compared to other markets. “The United States or the European Union, for example, have much stronger environmental laws and much greater regulatory and financial support. Mexico has not seen a major green or sustainable startup that is making a significant difference. Some are moving forward, but the big green unicorn that has been expected for several years has not emerged,” he told MBN.

Romero emphasized that emerging entrepreneurs, particularly those working on sustainability and environmental issues, face a context that is somewhat against them. “There are no regulations, there is no institutional support, and the Mexican market still does not value whether a product or a service is green or not,” he said. “Due to this lack of investment, there is still a long way to go before a project can reach the point of scalability.”

In light of these challenges, Romero urged Mexican legislators to use regulation to spur demand and drive market growth, citing the example of the Fintech Law. “After the law was passed in 2018, key startups began receiving investment and penetrating the market. Now, Mexico has a very developed fintech ecosystem,” he detailed. “However, when it comes to the sustainability sector, this type of regulation is sorely lacking.”