NoPalm Ingredients, the pioneering Dutch biotechnology company producing yeast oils, announced the successful closure of a € 5 million Seed funding round. The funding round was led by Rubio Impact Ventures, one of Europe’s foremost impact venture capital firms, and co-led by Oost NL, Fairtree Elevant Ventures, and family office Willow Capital Investments with participation from The Netherlands Enterprise Agency (RVO) and other private investors. The investment will accelerate the company’s mission to provide a local, circular, and sustainable solution for the global palm oil market.
Founded in 2021 by Lars Langhout and Professor Dr. Jeroen Hugenholtz, NoPalm Ingredients aims to address the environmental and supply chain challenges of conventional palm oil, which is found in 60% of supermarket products.NoPalm Ingredients employs a unique fermentation process using non-GMO proprietary yeasts combined with a patented low-capex technology. This process transforms upcycled, locally-sourced agri-food sidestreams, such as potato peels and whey permeate, into yeast oils. Feedback from customers indicates that NoPalm Ingredients’ oils are an ideal drop-in replacement for palm oil, requiring no recipe reformulation and achieving price parity. This is made possible by the use of agri-food sidestreams and an asset-light technology that is quick to scale. Additionally, the technology also boasts a 90% reduction in CO2 emissions and a 99% decrease in land use compared to traditional palm oil production. NoPalm has proven their oil quality with pilot partners including industry giants Colgate-Palmolive, Unilever, and Zeelandia.
“Palm oil is cheap, incredibly versatile and widely used in almost every fast-moving consumer good, from your toothpaste to my newborn’s infant formula. The problem is that global demand for palm oil grows by 4% annually, and there’s no strategy to meet the additional 22 million tons needed by 2030 without clearing rainforests 1.5 times the size of Ireland. With new regulations banning deforestation-related products, European companies can only source sustainably certified palm oil, which excludes 83% of current supplies. This will drive price increases that will affect every family in Europe. Often, the answer isn’t to prohibit a product but to step back and create a superior alternative that naturally compels a switch. This funding is pivotal for us to demonstrate large-scale production and reach our next milestone of producing 1,5 million kilograms of sustainable oil annually, solidifying our role as a trusted partner in the food and personal care industries. We are on track for industrialization and commercialization in 2025.”
— Lars Langhout, CEO & Co-founder of NoPalm Ingredients
“Rubio is excited to back NoPalm Ingredients’ mission to enable palm-free and sustainable alternatives for billions of everyday supermarket products. Palm oil driven land use change threatens catastrophic loss of richly biodiverse equatorial rainforests and is responsible for more emissions every year than the entire airline industry. Companies like NoPalm Ingredients are critical to preventing further pressure on our strained planetary boundaries.”
— Tijl Hoefnagels, Venture partner at Rubio Impact Ventures
