Dutch biotech firm NoPalm Ingredients has made a significant advancement in sustainable ingredient production, becoming the first company globally to scale the fermentation of oils and fats from food industry side streams to an industrial scale of 120,000 litres.

This milestone represents a significant step toward reducing dependence on palm oil and other tropical fats, aligning with environmental goals and evolving market demands.

The successful fermentation process, conducted at a contract manufacturing organisation (CMO), demonstrates NoPalm Ingredients’ ability to convert food waste into high-quality, food-grade oils through yeast-based fermentation.

This innovative approach not only provides a sustainable alternative but also offers substantial environmental benefits, with reported reductions of 90% in CO2 emissions and 99% less land use compared to traditional palm oil production.

Lars Langhout, CEO and Co-founder of NoPalm Ingredients, said: “Three years ago, we were fermenting at benchtop scale. This summer, we hit 5,000 litres, and today we've successfully scaled to 120,000 litres.”

He continued: “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. Our fermentation-derived oil is a true drop-in replacement – at price parity with the potential to reshape the industry.”

The urgency for sustainable alternatives is underscored by forecasts indicating a 4% annual growth in palm oil demand, coupled with challenges in maintaining RSPO-certified supply levels.

The new fermentation-derived oil is positioned as a drop-in replacement for palm oil, available at price parity, and is poised to reshape the industry landscape.