Using yeast to make a palm oil replacement

This fermentation process turns agriwaste into sustainable oils and fats

Spotted: Consumer awareness around the link between palm oil production and deforestation is increasing, leading many to choose products that are free from the ingredient. Despite this, palm oil production continues to rise and is expected to reach almost 80 million metric tonnes this marketing year.  

This growth poses a great threat to biodiversity, but now, Dutch biotechnology company NoPalm Ingredients has found a way to use organic waste streams to create a sustainable alternative. The startup upcycles food industry waste through a fermentation process that generates yeast-based oils, which can be used as an alternative to palm oil. Not only does this circular method help to tackle waste, but it also generates significantly fewer emissions than traditional palm oil production. 

NoPalm Ingredients uses organic waste such as potato peels and rejected vegetables to start the fermentation process. The company then adds its proprietary yeast mix that consumes the acids, sugars, and alcohol yielded by the fermentation process. As the yeast grows, it generates the oil that NoPalm Ingredients extracts for use as direct replacements for many palm-oil-based products – from cosmetics to food, shampoo, and more. 

The company’s process is extremely productive, using 99 per cent less land to produce commercial volumes of oil along with little to no waste, making it a highly effective – and rapid – way for brands to transition away from palm oil. NoPalm’s oils and fats can be customised for specific functions depending on the end product. 

The company recently secured €2.5 million in funding from the EIC accelerator, following a €5 million seed funding round led by Rubio Impact Ventures. The financing will help bring NoPalm closer to its goal of producing 1.5 million kilogrammes of sustainable oil annually, with a view to commercialise its products in 2025.

Written By: Keely Khoury