Lang
Singapore-based biotechnology company Terra Oleo has officially come out of stealth mode, announcing a $3.1 million funding round backed by Breakthrough Energy Discovery.
The company aims to revolutionise fat and oil production by offering sustainable alternatives to palm oil derivatives and cocoa butter, targeting applications in personal care, cosmetics, pharmaceuticals and food.
As global palm oil and cocoa supply chains come under mounting pressure from climate change, regulatory scrutiny and land scarcity, prices and volatility have risen sharply. In 2024, cocoa stocks fell by 26%, while palm oil exports dropped 5.83% year-on-year, underscoring the urgent need for viable alternatives.
Terra Oleo's innovative approach uses precision fermentation to convert agro-industrial waste into high-performance fat ingredients, tackling these challenges head-on.
The company's adaptable platform is designed to produce customised fat specifications that meet the specific requirements of different industries, while eliminating the energy-intensive refining processes and toxic by-products associated with conventional methods.
This unique capability positions Terra Oleo to offer better unit economics and accelerate market adoption of its products compared with other available solutions.
Terra Oleo's technology has the potential to make a significant environmental impact, with estimates suggesting it could remove up to 900 million tonnes of carbon dioxide (CO2) emissions annually from palm oil and cocoa supply chains.
This aligns with growing demand for sustainable practices in the personal care and food sectors, as companies increasingly prioritise environmentally friendly ingredients.
The company has already signed product testing agreements with several prominent players in the oleochemicals, food, personal care and cosmetics industries, signalling strong interest in and acceptance of its technology.
As demand grows, Terra Oleo is preparing to move from lab-scale operations to commercial production, while ensuring its products can match or exceed the performance of conventional alternatives.
Terra Oleo was founded by Shin Ming Lee, Boon Uranukul and Min Hao Wong, and the company draws on their combined expertise in science, industry and strategy to advance its mission of decarbonising palm oil and cocoa production.
"We founded Terra Oleo to reinvent the way the fats and oils that support our daily lives are produced. With the backing of the Breakthrough Energy Fellows Program and our investors, we are excited to bring sustainable, scalable alternatives to market," Lee said.
The Breakthrough Energy Fellows Program, which supports early-stage innovators developing technologies capable of significantly cutting greenhouse gas emissions at scale, has selected Terra Oleo to take part in its 2025 cohort.
This prestigious backing will support the company's transition from the laboratory to the pilot stage, as it moves forward with testing and validating customer formulations.