Dutch biotech company NoPalm Ingredients has scaled its fermentation-derived oil production to an industrial level of 120,000 liters, a first in the sector. The company successfully completed the production run at a Contract Manufacturing Organization (CMO), demonstrating the feasibility of converting food industry side streams into food-grade oils using yeast-based fermentation.
“With palm oil demand forecasted to grow by 4% annually […] the need for sustainable alternatives has never been more urgent”
The development presents a promising alternative to palm oil and other tropical fats, addressing supply chain concerns and environmental impacts associated with traditional oil production. According to NoPalm Ingredients, its fermentation process results in 90% lower carbon emissions and requires 99% less land use compared to palm oil production.
“Three years ago, we were fermenting at benchtop scale. This summer, we hit 5,000L, and today we’ve successfully scaled to 120,000L. With palm oil demand forecasted to grow by 4% annually and RSPO-certified supply unable to keep pace, the need for sustainable alternatives has never been more urgent,” explained Lars Langhout, CEO and co-founder of NoPalm Ingredients.
Industrial testing and commercialization
The company is now working with commercial partners to conduct industrial-scale testing of its oil in real-world applications. This phase will be crucial for securing contracts and advancing toward the establishment of its First-of-a-Kind demonstration factory.
NoPalm Ingredients, founded in 2021 and headquartered in Wageningen, develops yeast-derived oils and fats from upcycled agri-food side streams. Its proprietary fermentation process utilizes non-GMO yeasts and a patented low-CAPEX technology designed to achieve price parity with palm oil. The company previously secured €5 million in seed funding, reportedly the largest funding round for a palm oil alternative in Europe to date.
“This milestone is the result of relentless dedication and ingenuity from our team. Now, it’s time to capitalize on this momentum and scale toward full commercial deployment,” Langhout added.
