Palm oil alternatives partnership poised to deliver at industrial scale as new facility takes off

Biotech pioneer NoPalm Ingredients and contract research company NIZO Food Research are collaborating to establish NoPalm Ingredients’ first Demonstration Factory at the Food Innovation Campus at NIZO in Ede, the Netherlands. This move means NoPalm Ingredient will run its process for sustainable palm oil alternatives entirely at one location and shift from pilot to commercial-scale production.

NoPalm Ingredients produces circular oils and fats via fermentation, based on upcycled agri-food sidestreams. From its headquarters in Wageningen, its patented low-CAPEX technology delivers a scalable alternative to tropical oils while maintaining high functionality.

Previously, process steps took place at multiple locations, but this new partnership will save time, reduce costs, and accelerate scaling, because the operations will be under one roof. 

The facility allows customers to replace conventional oils and make their products more sustainable. Customers can also test new raw materials and process improvements. It will begin with several hundred metric tons annually and grow to more than 1,200 metric tons.

The first industrial production of yeast oil is expected in the second half of 2026, followed by further scaling in 2027 and 2028. 

Food Ingredients First speaks with Julie Cortal, chief commercial officer at NoPalm Ingredients, about the new factory, the green credentials of yeast oil production over conventional palm oil farming, and reducing the food industry’s dependence on deforestation-linked ingredients.

How did the partnership with NIZO and the Food Innovation Campus come about, and why was it the right fit for your first industrial site?

Cortal: We chose the Food Innovation Campus in Ede because it combines the right technical foundations, the right ecosystem, and the right location. An in-depth engineering study confirmed the site’s readiness, with utilities, energy, and infrastructure already in place to support industrial fermentation. NIZO and the Food Innovation Campus bring world-class expertise, as well as close connections to the food industry.  Add to that the strong backing of the Province of Gelderland, Oost, and the city of Ede, the Netherlands, and we are part of an ecosystem built to accelerate food innovation. Finally, being close to both feedstock sources and customers makes this the ideal launchpad to scale our technology and bring it to market quickly.

We have proven that our technology works, and by taking the entire process into our own hands, we maintain maximum control over every step: from raw material to end product. This guarantees consistent quality, high standards, and security of supply — and with that, a solid foundation for long-term partnerships with customers who want to become more sustainable and grow.

Can you elaborate on the environmental advantages of yeast oil production over conventional palm oil farming, particularly in terms of land and water use?

Cortal: Our yeast oil is completely disconnected from land use: it is produced through fermentation with upcycled feedstocks, not tropical crops. Independent life cycle assessments with Bühler show ~90% lower CO2 emissions and 99% less land use compared to palm oil. To put it simply, producing 1 kg of NoPalm requires less than 1% of the surface needed for palm. With palm demand still rising 4% per year, that land-saving impact is critical. Looking ahead, our platform will also allow us to design tailored oil compositions, skipping steps like fractionation, making production not only more sustainable but also more efficient for the industry.

How does your process address sustainability across the entire value chain — from feedstock sourcing to end product?

Cortal: We use circular, upcycled side streams from the food industry as feedstocks, ensuring we don’t compete with crops that could be used for food. Our fermentation platform was purpose-built to be low-CAPEX and low-energy, operating under non-sterile conditions, far more efficient than traditional precision fermentation. We are continuously improving, for example, with innovative downstream processes to cut energy use and emissions further. The result is oils that are drop-in replacements for tropical fats and help customers cut Scope 3 emissions, without compromising performance or requiring costly changes to their existing production lines.

Do you anticipate that yeast oil could reduce the food industry’s dependence on controversial or deforestation-linked ingredients?

Cortal: Yes, but it will take time. Palm oil demand is growing 4% annually, and no certification scheme can cover that growth without further deforestation. To truly reduce dependence, we need alternatives at scale. Yeast oil provides that path: it is disconnected from land use, biodiversity loss, and social risks, and with our co-location and licensing model, we can scale much faster than traditional approaches. It won’t happen overnight, but with this model, yeast oil can become a credible large-scale alternative and help the industry gradually break free from its reliance on controversial tropical fats in the coming years.

Fat and oil innovation often lags behind the protein transition. Why do you think that is — and how is NoPalm changing that narrative?

Cortal: Proteins have advanced quickly because consumers actively demand alternatives, but oils and fats are largely invisible in product formulations to the end consumer. That means there’s no premium for sustainability; adoption depends entirely on delivering full functionality at a competitive price. At NoPalm, we’ve designed our process with affordability in mind from the start, using low-CAPEX technology, non-sterile fermentation, and a scalable model. The result is yeast oils that perform like tropical fats while enabling customers to cut their footprint. By combining performance with price, we’re putting fats at the center of the sustainable food transition.