Billionaire Bill Gates backs Singapore's Terra Oleo in securing $3.1 million funding to manufacture palm oil alternatives from waste products.
In a significant development for the sustainable fats sector, Singaporean startup Terra Oleo has completed a one-tonne production run for its palm oil substitute. The company's precision fermentation process, which modifies yeast into lipids with customisable profiles for high-value palm and cocoa applications, is at the forefront of solving the climate, regulatory, and supply challenges facing these supply chains.
Terra Oleo's innovative approach eschews the energy-intensive refining steps and toxic byproducts of oleochemical processes, making it a more environmentally friendly alternative. The company's waste-valorising, precision-fermented fats cut emissions by up to 86%, land use by 90%, and water use by 88%.
The startup has secured funding of $3.1M from various investors, including ADB Ventures, The Radical Fund, Elev8.vc, Better Bite Ventures, and a strategic corporate investor from the palm oil industry. The European Investment Bank (EIB) provided the strategic investor in the financing of Terra Oleo.
Product validation for Terra Oleo's products is underway, and the company is product testing with several global and regional leaders in oleochemicals, food, personal care, and cosmetics. Terra Oleo is manufacturing in Thailand and Singapore across all target products.
Recent rapid advancements in the sustainable fats sector have been observed, with Terra Oleo being selected for the 2025 Fellows programme by Bill Gates's Breakthrough Energy. The programme aims to bridge the gap from lab to market and supports early-stage innovators with capital and mentorship. Ashley Gross, VP of Breakthrough Energy, expressed support for Terra Oleo.
The importance of Terra Oleo's work cannot be overstated, particularly in light of the environmental impact of palm oil production. Indonesia and Malaysia are home to 90% of oil palm trees, and palm oil production has increased tenfold since 1980, leading to mass deforestation and wildfires.
Terra Oleo specializes in turning agro-industrial waste into sustainable alternatives to palm oil and cocoa butter. The company's technology, at full scale, is predicted to remove 900 million tonnes of CO2 from the palm and cocoa supply chains annually.
In another notable development, Dutch producer NoPalm Ingredients signed a deal with dairy giant Milcobel to use its whey permeate as a fermentation feedstock for its palm oil alternatives. This collaboration further underscores the growing interest in sustainable alternatives to palm oil.
British firm Clean Food Group also received regulatory approval in the US, EU, and UK to sell its yeast-derived oil in cosmetic applications this month. This approval marks a significant milestone in the acceptance and adoption of sustainable fats in various industries.
As Terra Oleo continues to scale its operations and secure key partnerships, it is poised to make a substantial impact on the palm oil and cocoa supply chains, offering a more sustainable, eco-friendly alternative.
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