Emerges from the shadows, Terra Oleo unveils its fermentation technology, designed to produce premium fats through the utilization of microbes.
Singapore-based startup Terra Oleo has made a significant stride in the world of sustainable oils production, having been chosen to join Breakthrough Energy's 2025 Fellows Program. Founded in 2023 by Shen Ming Lee, Boon Uranukul, PhD, and Min Hao Wong, PhD, Terra Oleo has developed a unique yeast-based fermentation platform that re-tools the yeast's oil-making pathways to create fats that match or exceed the properties of cocoa butter and specialty palm-derived ingredients. The startup's primary goal is to produce tailored lipids to replace palm oil fractions and cocoa butter for a range of industries. This ambition is driven by growing pressure on palm oil and cocoa supply chains, which are experiencing increased costs and supply volatility. Terra Oleo boasts a portfolio of proprietary yeast strains, each producing slightly different fat profiles and melting ranges for cocoa butter. For food applications, their product will be labelled as a "Cocoa Butter Equivalent." For non-food applications, the oils would be labelled according to their main fatty acids, following the current industry standard. The startup has already signed product testing agreements with firms in oleochemicals, food, personal care, and cosmetics. They source lower-cost feedstocks from starch, biodiesel, and oleochemical production, which are abundant across Southeast Asia. One of their feedstocks is up to 70% cheaper than dextrose. Terra Oleo's strategy involves optimising strain development, bioprocess, and downstream processing to increase yields. They plan to scale from lab to pilot scale, advance customer testing and validation, and collaborate with manufacturing partners. A potential partner for establishing a joint venture with Terra Oleo to expand the production of their pilot scale is a strategic manufacturing partner, likely also a customer, with whom Terra Oleo plans to collaborate through co-manufacturing and possibly a joint venture. Currently, they co-manufacture in Thailand and Singapore and are seeking such partnerships for scaling up. The funding round for Terra Oleo was backed by ADB Ventures, The Radical Fund, Elev8.vc, Better Bite Ventures, a strategic investor from the palm oil industry, and other investors, totaling $3.1 million. The labeling details for Terra Oleo's products are still under consideration and may not be fully clear until the products enter the market. Terra Oleo is targeting markets in the US and Singapore. The performance of their oils is a major focus for non-food markets, while food markets may have additional labeling requirements. As a part of Breakthrough Energy's 2025 Fellows Program, Terra Oleo will have access to a network of experts, resources, and potential customers, further propelling their mission to create sustainable alternatives to palm oil and cocoa butter.
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