The takeaway cup holding your morning flat white could soon be turned into outdoor furniture, building materials, or food trays.

Australians have recently been grappling with the fact at least one billion disposable coffee cups end up in landfill each year because the thin plastic lining often stops them from being recycled.

7-Eleven chief executive Angus McKay and Simply Cups' Rob Pascoe with one of the new recycling bins

Stacked end-to-end, one billion coffee cups would stretch 120,000 kilometres, or three times around the world.

Environmental solutions company Closed Loop is hoping to ease the overwhelming waste problem by February, through its Simply Cups initiative, which aims to collect 100 million cups to start up a commercially viable recycling facility.