Dutch startup NoPalm Ingredients, a biotech startup producing yeast oils, has picked up €5 million in seed funding. The round was led by Rubio Impact Ventures (which invested in Vytal and tiney), 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.
What challenge does it tackle?
Palm oil is cheap, versatile, and used in about 60% of fast-moving consumer good. However, with demand rising 4% annually and 22 million extra tons needed by 2030, meeting this demand would require clearing rainforests 1.5 times the size of Ireland. New regulations will also force European companies to source sustainably certified palm oil, excluding 83% of current supplies and driving up prices for every family.
Tackling this challenge, NoPalm Ingredients is on a mission to create a green parallel oil & fat industry, by producing palm oil without palm trees.
What does the company do?
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 upcycles and ferments food-industry waste streams to produce yeast oils & fats that are perfect drop-in substitutes for palm and other vegetable oils in food, cosmetics, and personal care products. Its ingredients offer a two-sided solution that reduces both food waste and reliance on palm oil.
As per the company, this technology boasts a 90% reduction in CO2 emissions and a 99% decrease in land use compared to traditional palm oil production.
NoPalm has proven its oil quality with pilot partners, including industry giants Colgate-Palmolive, Unilever, and Zeelandia.
Lars Langhout, CEO & Co-founder of NoPalm Ingredients said: “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 industrialisation and commercialisation in 2025.”
Investors’ views
Tijl Hoefnagels, Venture Partner at Rubio Impact Ventures said: “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.”
David Evans, Managing Director at Fairtree Elevant Ventures said: “NoPalm Ingredients has demonstrated the ability to make a cost-effective drop-in replacement for palm oil and other lipids that we believe will revolutionise the industry, address the massive environmental challenge of palm oil production and harvesting as well as solve myriad supply chain pain points for customers. Further, NoPalm Ingredients’ innovation allows them to upcycle industrial food waste streams which recovers carbon and creates value from waste, creating tremendous benefits. NoPalm Ingredients has demonstrated both the technical capabilities as well as the commercial partnerships to rapidly scale their technology and make an incredible impact across a wide swathe of industry and we look forward to supporting them on this exciting journey ahead.”
Maureen Haverkamp, Investment Analyst at OostNL added: “NoPalm Ingredients is a leading pioneer from the Foodvalley ecosystem that is shaping the Dutch and European alternative oils and fats landscape, to create a more sustainable Food system. Their business model is innovative and appealing to both suppliers and customers and has a clear positive impact on the environment. We’re proud to invest in the innovative team of NoPalm Ingredients.”
Our thoughts on NoPalm Ingredients
By offering a sustainable, environmentally friendly alternative to palm oil through yeast oil production, the company addresses significant environmental challenges. Partnering with industry giants, it is well-positioned for large-scale production and commercialisation by 2025. Its technology not only mitigates the impact of palm oil production but also upcycles food waste, creating a circular economy and driving a greener future.
