The global palm oil industry, valued at a staggering $70 billion, is standing at a climate crossroads. Extreme weather events and mounting environmental scrutiny are forcing the sector to reconsider its future. Enter precision-fermented palm oil, a biotech-driven alternative not just a sustainability gimmick but a serious contender to shake up the market.
Source: © Tan Kian Yong | Dreamstime.com - Ripe palm kernels in supermarket trolley
C16 Biosciences, a US-based biotech starlet, is leading the charge with its “brewed” palm oil. Using yeast strains to ferment oils in a process similar to brewing beer, C16 sidesteps deforestation and methane-heavy production. Investors are paying attention with C16 getting a $3.5M grant from the Gates Foundation and an additional $1M from Elemental Excelerator, reflecting rising confidence in its palm oil disruptor, PALM-ALT.
Across the Atlantic, the UK’s Clean Food Group is making similar waves with a fermentation-based palm oil alternative. Their approach aims to tackle not just environmental concerns but also food waste by utilising non-GMO yeast strains and side-stream ingredients. Dutch startup NoPalm Ingredients is also pushing boundaries, using discarded produce and peelings as feedstock to create its microbial-fermented palm oil, cleverly aligning with upcoming EU Deforestation Regulation requirements.
Source: PFN Ai Archives - Precision Fermented Palm Oil.
Then there’s Melt&Marble out of Sweden. This biotech firm has fine-tuned the fat fermentation process to mimic the texture and mouthfeel of palm oil, striking a partnership with Finnish food giant Valio. Together, they’re crafting next-gen plant-based products with improved taste and structure—all while trimming the carbon fat from the supply chain. With grants from the European Innovation Council and Horizon Europe, Melt&Marble has scaled production to over 10,000 litres of fermented fats and is eyeing US commercialisation as soon as this year.
Germany’s Zayt Bioscience is turning fruit waste into precision-fermented fats, while Estonian startup Äio uses agricultural side streams to brew palm oil substitutes. Meanwhile, US-based Kiverdi is even more futuristic, using captured carbon as feedstock, and Dutch brand Time-Travelling Milkman has its sights set on sunflower-based alternatives
For legacy brands like Unilever, the stakes are clear. With a €110M investment in biotech firm Geno to develop palm oil alternatives, the conglomerate is banking on precision fermentation to stabilise its supply chains and reduce its environmental footprint.
The message is simple -precision-fermented palm oil isn’t fringe, it’s fast becoming a critical pivot for food, beauty, and personal care industries relying on this versatile vegetable fat with high ecological impact. The next few years will determine whether these lab-grown alternatives can scale affordably enough to make a dent in the conventional market.
For now, one thing’s clear, the biotech fat race is on, and it’s anyone’s game.
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