NoPalm Ingredients, a prominent Dutch biotech company specializing in yeast oils, has successfully raised €5 million in seed funding. The round was spearheaded by Rubio Impact Ventures, a top European impact venture capital firm, and co-led by Oost NL, Fairtree Elevant Ventures, and Willow Capital Investments, with additional participation from The Netherlands Enterprise Agency (RVO) and other private investors. This investment will support the company's goal of offering a local, circular, and sustainable alternative to the global palm oil market.

Founded in 2021 by Lars Langhout and Professor Dr. Jeroen Hugenholtz, NoPalm Ingredients is focused on solving the environmental and supply chain issues associated with conventional palm oil, which is present in 60% of supermarket products. The company utilizes a distinctive fermentation process involving non-GMO proprietary yeasts and a patented low-capex technology. This method converts upcycled, locally-sourced agri-food byproducts, such as potato peels and whey permeate, into yeast oils. Customer feedback suggests that NoPalm Ingredients’ oils are a perfect drop-in replacement for palm oil, requiring no changes to recipes and maintaining cost parity. The use of agri-food byproducts and scalable, asset-light technology contributes to a 90% reduction in CO2 emissions and a 99% decrease in land use compared to traditional palm oil production. NoPalm has demonstrated the quality of its oils through successful pilot projects with major industry players like Colgate-Palmolive, Unilever, and Zeelandia.

“Palm oil is affordable, incredibly versatile, and found in nearly every fast-moving consumer product, from toothpaste to baby formula. However, with global demand increasing by 4% annually, meeting the additional 22 million tons needed by 2030 would require clearing rainforests equivalent to 1.5 times the size of Ireland. New regulations are set to ban products associated with deforestation, restricting European companies to sustainably certified palm oil, which currently accounts for just 17% of the supply. This will drive up prices, affecting every European household. Rather than banning the product, we should focus on developing a superior alternative that naturally encourages a switch. This funding is vital for scaling up production and reaching our goal of producing 1.5 million kilograms of sustainable oil annually, positioning us as a trusted partner in the food and personal care industries. We are on track for industrialization and commercialization by 2025,” said Lars Langhout, CEO & Co-founder of NoPalm Ingredients.

Tijl Hoefnagels, Venture Partner at Rubio Impact Ventures, stated, “Rubio is thrilled to support NoPalm Ingredients in their mission to provide palm-free and sustainable alternatives for countless everyday products. The land use change driven by palm oil is causing devastating loss of biodiversity in equatorial rainforests and generates more emissions annually than the entire airline industry. Companies like NoPalm Ingredients are essential in alleviating the pressure on our already strained environmental limits.”

David Evans, Managing Director at Fairtree Elevant Ventures, commented, “NoPalm Ingredients has proven their capability to create a cost-effective, drop-in replacement for palm oil and other lipids. We believe this innovation will transform the industry, tackle the significant environmental challenges associated with palm oil production and harvesting, and address numerous supply chain issues for customers. Additionally, NoPalm Ingredients' approach to upcycling industrial food waste not only recovers carbon but also generates value from waste, offering substantial benefits. They have demonstrated both the technical expertise and commercial partnerships necessary to rapidly scale their technology and make a significant impact across various industries. We are excited to support them on this promising journey.”

Maureen Haverkamp, Investment Analyst at OostNL, stated, “NoPalm Ingredients is a leading innovator within the Foodvalley ecosystem, significantly influencing the Dutch and European landscape for alternative oils and fats to build a more sustainable food system. Their business model is both innovative and attractive to suppliers and customers, with a clear positive impact on the environment. We are proud to support the innovative team at NoPalm Ingredients with our investment.”