The glue coating from 76,000 cups, which takes decades to break down, has been used to bind the road together in Jameson Road in South Penrith.
State Asphalt Services director John Kypreos said the material doesn’t allow water to get underneath the road, which is what creates potholes.
Over a million glass bottles have also been added to asphalt, which has proven to strengthen road surfaces during trials in Penrith and Canterbury Bankstown.
Closed Loop managing director Rob Pascoe said it was great for the circular economy.
“The trial is completed in April in Penrith then it will be rolled out everywhere,” he said.
“They will be resurfacing the tunnels with this product.”
The coffee cups used were recycled by locals at a collection point at Southlands Shopping Centre in Penrith’s south.