Dutch Startup NoPalm Ingredients Partners with NIZO Food Research to Develop Palm Oil Alternatives
Dutch startup NoPalm Ingredients has announced a collaboration with NIZO Food Research, a contract research organization, to establish a demo facility at NIZO’s food innovation campus in Ede, Netherlands. The aim is to produce sustainable palm oil alternatives through fermentation methods.
Accelerated Development through Existing Infrastructure
Utilizing the existing infrastructure at the NIZO campus will allow NoPalm to expedite the construction of the demo facility more efficiently and at a reduced cost. Currently, NoPalm operates a pilot line featuring a 400-liter fermenter, but has already achieved larger-scale production through partnerships with contract manufacturers.
Projected Production Timeline
NoPalm plans to commence production at the demo site in the latter half of 2026, with the capacity expected to increase from hundreds of tons to 1,200 tons per year, according to COO Jeroen Blansjaar. He remarked, “This is the crucial step that paves the way for our first commercial factory, which we aim to build alongside a side stream partner at their site, significantly lowering risks for our collaborators and us.”
The Importance of a Demo Facility
When addressing why a demo-scale plant is necessary despite existing capabilities with contract manufacturers, Langhout explained to AgFunderNews: “While we’ve validated our core process at pilot scale and industrial fermenters, a demo factory is key to proving reliable, continuous operations with integrated upstream and downstream processes under one roof.”.
He further detailed, “Our multi-step process includes fermentation, two drying steps, and extraction—with each executed at different contract manufacturing organizations. Customers and investors need to see proof of consistent, long-term operations from beginning to end.”
Scalable and Flexible Production
The demo facility will employ fermenters with a total volume of 63,000 liters, providing the right size to demonstrate industrial reliability. This setup will enable NoPalm to deliver commercial volumes while allowing flexibility for R&D and portfolio development.
The demo site is aimed to yield around 1,200 tons of oil per year, positioning the first commercial plant to be significantly larger, producing between 6,000 and 10,000 tons annually, with capital expenditures expected to be three times that of the demo factory.
Sustainable Feedstock and Future Innovations
The demo facility will primarily utilize dairy side streams as feedstock, a choice deemed both abundant and cost-effective. Over time, NoPalm plans to incorporate additional agro-industrial side streams, such as molasses and potato residues, to reinforce the versatility of their platform.
Funding and Future Expansion Plans
NoPalm raised €5 million ($5.9 million) in the previous year to facilitate crucial engineering work and secure customer traction. To help in building and operating the demo plant, the company will soon commence a Series A funding round, complemented by grant funding and contributions from partners.
Innovative Low-Cost Fermentation Techniques
Founded in 2021 in Wageningen by Lars Langhout and Prof. Jeroen Hugenholtz, NoPalm Ingredients employs oleaginous yeast strains to produce high lipid content without genetic engineering, relying on directed evolution to optimize performance. They focus on mid-fraction palm-type oils while being capable of generating a variety of fatty acid profiles.
Langhout explained, “We’ve done this inexpensively by implementing low-capex fermentation using brewery-type fermenters and food industry waste streams, which help reduce costs related to raw materials, energy, and equipment.” The demo facility is set to validate their advancements in solvent-free downstream processing.
Sustainability and Regulatory Compliance
NoPalm has initially targeted the EU market, as upcoming regulations will require companies to demonstrate that imported goods do not contribute to deforestation or violate local environmental laws. Langhout emphasized, “European customers are seeking sustainable and deforestation-free alternatives to palm oil that maintain price parity and functionality.”
On the regulatory front, NoPalm does not anticipate the need to file a novel food application in the EU but is instead pursuing the Article 4 substantial equivalence route, asserting their lipids are a direct replacement for conventional palm fractions.
Aiming for Price Parity
When asked about potential premiums for palm oil alternatives, Langhout indicated, “To make a real impact, we need to achieve price parity or even provide a green discount.” They have prioritised cost-effective production methods to ensure competitive pricing with established palm oil fractions.
Watch the Interview
To gain further insights, watch our interview with Lars Langhout at the SynBioBeta conference in May:
