The only recycling centre for Nespresso pods in Australia is located at a modest-size scrap metal dealer in West Nowra.
Sell & Parker opened its doors as part of National Recycling Week.
Australians consume around three million coffee pods a day, and all of Nespresso's pods that will be recycled head to Nowra.
Nespresso didn't say how many pods were consumed or recycled in Australia but did say around 29 per cent of its pods were recycled worldwide.
Sell & Parker Nowra site manager Steve Martin explained how the recycling process for pods worked.
"Trucks come weekly and deliver the Nespresso pods in boxes and plastic bags," Mr Martin said.
"We run them through a debagging process where we can extract the pods from the packaging and then we'll run the pods through another separation process which will remove the aluminium from the coffee grounds.
"The coffee grounds will be added to a mulch product and the aluminium will be pressed up into briquettes and then sold to an aluminium smelter."
Since its partnership began with Nespresso in 2012, Mr Martin said the amount of pods it received had grown significantly and provided a reliable income stream.
Nespresso technical and quality manager Marta Fernandez said the biggest focus was not how many pods were recycled but that recycling options were easily available for customers.
"This is the only site for Nespresso in Australia; we recycle the whole volume of Australia here in this site in Nowra. New Zealand will have its own site and every Nespresso market will have their own recycling solution," Ms Fernandez said.
"Our biggest focus at the moment is not so much on that. It is actually making sure we continue to make it easier and easier and more people have access to good, easy solutions for recycling."
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Earlier in November, Lavazza started selling compostable coffee pods and announced its whole range would eventually be compostable.
But Nespresso said they use aluminium because it 100 per cent recyclable and sustainable.
"We chose aluminium for our capsules and for several reasons. It's actually the best material to maintain the aromas of coffee ... and also because is sustainable," Ms Fernandez said.
"Aluminium is 100 per cent recyclable so it can be recycled over and over again, which allows us to make sure we can go into a circular economy and have a sustainable solution long term."