Cigarette butts. (ERROL MCGIHON/QMI AGENCY FILE PHOTO)

A Canadian company says it has discovered a way to recycle cigarette butts.

TerraCycle said it will make plastic pallets for industrial use from waste, including butts, cigarette foil and plastic packaging. The paper and remaining parts of tobacco will be composted.

"As a company committed to recycling waste streams that others deem worthless or unsavoury, cigarette waste will help to promote our belief that everything can and should be recycled," TerraCycle founder Tom Szaky said in a release.

Everything but the recyclable cardboard box is accepted. Filters will be collected in receptacles similar to ashtrays by those participating in the program. Participating groups will receive 100 points for every pound of waste received. The points can be used to purchase charity gifts or converted to cash for donation to a charity or non-profit of the collector's choice.