Revolutionising palm oil and cocoa with sustainable alternatives

In the heart of Singapore’s biotech scene, Terra Oleo is quietly leading a revolution that could transform two of agriculture’s most complex and carbon-heavy supply chains-palm oil and cocoa

With a fresh US$3.1mn in funding and support from Breakthrough Energy’s prestigious Fellows Program, the company is pushing its innovative platform out of the lab and into real-world agricultural systems.

This isn't just a tech breakthrough-it’s a response to a mounting crisis. The global palm oil and cocoa industries are feeling the squeeze of climate disruption, shrinking arable land, and tighter environmental regulation. In 2024, cocoa stockpiles fell by 26%, sending prices soaring, while palm oil exports dropped by nearly 6% as producers struggled with rising costs and inconsistent yields. For agri-businesses, food producers, and cosmetics manufacturers alike, volatility is becoming the norm and sustainable alternatives are no longer a niche pursuit but an industry necessity.

Terra Oleo’s answer is a tunable fermentation platform that uses microbes to convert agro-industrial waste into high-value lipid ingredients. These aren't just stand-ins for palm oil or cocoa butter; they’re engineered replacements designed to match or outperform conventional fats in terms of performance, stability, and application. From food and pharmaceuticals to personal care and cosmetics, the potential uses are wide-ranging.

The real genius lies in the platform’s customisation. Unlike natural microbial processes that are often limited in scale and flexibility, Terra Oleo’s system allows for precise control over the lipid profile of its outputs. That means the company can tailor its ingredients to suit specific industry needs, whether that’s for baking chocolate or industrial emulsifiers. And because the process bypasses land-intensive crops, toxic refining steps, and heavy energy use, it drastically reduces both the carbon footprint and chemical waste involved.

Backed by deep scientific expertise in synthetic biology and microbial engineering, the company is poised to move quickly from pilot phase to commercial scale. It has already signed product testing agreements with several major players in the food, oleochemical, and personal care sectors. More than a proof of concept, this funding round marks a shift towards real, scalable change.

With its roots partly in the palm oil industry, Terra Oleo has a unique advantage it knows the traditional system inside out and is building a better one alongside it. At scale, its platform could prevent up to 900 million tonnes of CO₂ emissions annually, signalling a major leap towards decarbonising agriculture’s supply chains without compromising quality or performance.

As the pressure mounts to future-proof ingredient sourcing and reduce environmental impact, Terra Oleo’s approach offers more than just an alternative—it offers a reset. For agriculture, that reset can’t come soon enough.