Lang
Australian biotechnology start-up Levur has secured AUD 1.2 million (equivalent to USD 769,780) to fund its commercial plan to bring lab-made alternative cosmetic oils to market. The company says it produces oils identical to natural ones with no environmental footprint, using a yeast-based fermentation process.
Levur argues that producing cosmetic ingredients in the laboratory is pivotal for sustainability, supply chain stability, clear traceability and advanced functional properties.
These innovations are aimed first and foremost at reducing dependence on palm oil in personal care products and other everyday consumer goods. Palm oil is used widely across the industry and is found in roughly 70% of cosmetic preparations, according to the British Cosmetic, Toiletry and Perfumery Association. Organisations including the World Wide Fund for Nature (WWF) and Greenpeace classify it as highly unsustainable.
Speaking to Personal Care Insights, Tom Collier, founder and chief executive of Levur, described how the company uses precision fermentation to produce sustainable palm oil alternatives from yeast, and its plan to use organic waste as a feedstock.
The funding round was led by deep-tech investment fund Main Sequence and Australian agribusiness GrainCorp. Levur intends to produce its oils at sites close to major cosmetics manufacturers, while working towards using organic waste as feedstock for the yeasts.
"We don't need rainforests to make our oils," Collier said. "We use precision fermentation of particular yeast strains that feed on a feedstock, which can come from multiple sources such as sugarcane, and we are currently working on the possibility of using organic waste to strengthen the circular economy proposition."
Collier explained that the company does not grow conventional crops but instead cultivates yeasts to produce alternative oils equivalent to palm oil.
"We can also tailor the oil's properties further in terms of purity and functionality, compared with the oils currently available on the market."
Lab-made cosmetic ingredients offer high, consistent purity and quality, and can be designed specifically to suit the needs of cosmetic formulations.
"Ingredients produced through precision fermentation offer a more reliable supply chain, because they are not tied to weather or global supply chain disruptions."
Collier said the oils can be used as a drop-in replacement for the medium-chain triglycerides (MCTs) used in skin and hair care.
"We are developing proprietary oil formulations designed to deliver anti-ageing properties, such as antioxidants, ceramides, amino acids and peptides."
He added that consumers have become more environmentally aware and are looking for traceable and environmentally transparent ingredients in the brands they buy.
Collier also addressed the regulatory challenges facing brands, chief among them the European Union Deforestation Regulation (Scope 3), which takes effect in December 2025 for medium and large companies and in June 2026 for small ones.
"Precision fermentation guarantees higher levels of purity, quality and consistency, which is what premium cosmetic formulations demand."
Collier noted that large-scale palm oil production has caused extensive deforestation, habitat destruction, biodiversity loss and substantial greenhouse gas emissions.
According to WWF, palm oil accounts for 40% of global vegetable oil production but is grown on only 6% of the land devoted to oil crops, making it extremely intensive in environmental terms.
"Global demand for products containing palm oil and its derivatives keeps rising, but conventional unsustainable cultivation can no longer meet that demand."
This is the critical market gap Levur is seeking to fill, by offering yeast-derived palm oil substitutes produced through precision fermentation.
Collier concluded: "We are offering a sustainable, scalable, high-quality alternative that benefits manufacturers, consumers and the environment alike."