Impact Case NoPalm Ingredients

#CleanTech

NoPalm Ingredients: Reinventing oil for a sustainable future

Palm oil is everywhere. It’s in over 50% of supermarket products, from shampoo and toothpaste to instant noodles and ice cream. With an annual production of 80 million tonnes, palm oil has become the world’s most consumed vegetable oil—hailed as the “wonder oil” for its versatility and cost-effectiveness. But this widespread use comes at a staggering environmental cost. Since 1990, 22 million hectares of virgin rainforest—more than five times the size of the Netherlands—have been cleared to make way for palm plantations. Palm-driven deforestation contributes to 1.4% of global CO₂ emissions every year and threatens 40% of endangered species.

Enter NoPalm Ingredients, an innovative biotech company using fermentation technology to produce sustainable, circular oils as an alternative to palm oil. By upcycling agrifood sidestreams, NoPalm Ingredients drastically reduces land use by 99% and lowers greenhouse gas emissions by up to 94%—offering a truly scalable solution to one of the world’s most pressing environmental challenges.

Theory of Change

NoPalm Ingredients replaces palm oil with a fermentation-based alternative derived from agrifood waste. This prevents further deforestation, reduces reliance on industrial agriculture, and lowers carbon emissions across the supply chain. By proving that oils can be produced locally and sustainably, NoPalm Ingredients is paving the way for a climate-friendly shift in the global food and cosmetics industries.

Problem

Palm oil’s massive demand is expected to grow by 30% by 2030, intensifying the environmental crisis. The problem is systemic: palm plantations are limited to the tropics, meaning expansion comes at the expense of some of the world’s most biodiverse ecosystems. Deforestation for palm oil has already contributed to more emissions than the entire airline industry, and millions of small farmers and workers depend on the palm oil economy, creating complex social and economic challenges.

Despite increasing awareness, the world lacks a 1-to-1 scalable substitute that matches palm oil in performance, composition, and cost. Without an alternative, industries will continue relying on deforestation-driven production, worsening climate change, biodiversity loss, and land degradation.

Output & Outcome

NoPalm Ingredients has created a fermentation-based system that converts agrifood waste into oils that serve as a direct replacement for palm oil. These oils match palm oil in functionality, taste, and stability, making them a seamless alternative for food and cosmetic manufacturers. With a business model that initially focuses on direct production before transitioning to a licensing structure, NoPalm aims to scale its impact by embedding its technology into global supply chains.

By displacing palm oil, NoPalm’s fermentation-based oils require 99% less land and emit 85-94% fewer CO₂ emissions. The ability to produce oils locally reduces transport-related emissions and minimizes the environmental impact of large-scale palm plantations. Additionally, the process prevents organic waste from going to landfills, contributing to a more circular economy. If widely adopted, NoPalm Ingredients has the potential to transform global oil supply chains, making food and cosmetics production significantly more sustainable.

Benificiaries

The primary beneficiary of NoPalm Ingredients’ innovation is the environment. By significantly reducing land use and eliminating the need for further deforestation, NoPalm directly contributes to biodiversity conservation and climate change mitigation. The reduction in greenhouse gas emissions benefits society as a whole, as it lowers global carbon footprints and contributes to a more sustainable economy.

Food and cosmetics manufacturers also benefit from NoPalm’s technology, as it provides them with a scalable, sustainable alternative to palm oil that meets increasing consumer and regulatory demands for deforestation-free supply chains. The fermentation process enables these companies to maintain product performance while reducing their environmental impact, making sustainability more accessible and economically viable.

Additionality

Without NoPalm Ingredients, the market would continue to lack a truly scalable alternative to palm oil. Competing vegetable oils, such as soybean and sunflower oil, require even more land per tonne than palm oil, making them unsustainable replacements. Other fermentation-based solutions are still in early development or fail to match palm oil’s functionality at a competitive price.

NoPalm’s innovation is unique in its ability to directly replace palm oil in food and cosmetics production. The company’s approach ensures high performance at a lower environmental cost, making it the first viable alternative that does not rely on industrial-scale agriculture. Without NoPalm, industries would continue driving deforestation and emissions, with no feasible path toward sustainability.

Systemic potential

NoPalm Ingredients has the potential to reshape the global supply chain for vegetable oils, proving that fermentation-based alternatives can replace deforestation-linked commodities. By decoupling oil production from land use, NoPalm’s innovation could set a new standard for biomanufacturing in food and cosmetics.

If successfully scaled, NoPalm could drive policy changes, pushing for deforestation-free supply chains and encouraging other sectors to explore fermentation as a sustainable production method. Beyond palm oil, NoPalm’s technology could be adapted for other industrial oils, expanding its impact across multiple industries.

Rubio Impact Target

  • Total land use change avoided – Measuring how many square kilometers of land are prevented from being converted to palm plantations.
  • Technology readiness – Tracking NoPalm’s ability to scale fermentation capacity and lower production costs.
  • CO₂ reduction per kilogram of oil produced – Quantifying the emissions savings achieved through NoPalm’s closed-loop model.

Risks

One of the key risks for NoPalm Ingredients is market acceptance. While sustainability concerns are growing, large food and cosmetics companies may be slow to adopt alternatives unless price competitiveness is achieved. Another challenge is scalability—as a fermentation-based product, NoPalm’s production must be expanded significantly to meet demand and drive meaningful impact.

The potential social impact of disrupting the palm oil market must also be considered. Millions of smallholder farmers rely on palm oil cultivation for their livelihoods. A large-scale shift away from palm oil could lead to economic displacement, requiring policies and programs to support a just transition for affected communities.

SDG Alignment

NoPalm Ingredients directly contributes to:

  • SDG 12: Responsible Consumption and Production – Creating a fully circular, waste-based oil production system.
  • SDG 13: Climate Action – Reducing CO₂ emissions from land-use change and agricultural expansion.
  • SDG 15: Life on Land – Preventing deforestation and preserving biodiversity.