From whey permeate to sustainable oils: upcycling dairy by-productsalternatives
Viable alternative to palm oil: Milcobel and Dutch foodtech startup NoPalm Ingredients partner
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NoPalm Ingredients, a biotech pioneer producing sustainable palm oil alternatives through fermentation, has signed a strategic partnership agreement with Milcobel, a leading Belgian dairy cooperative, aimed at scaling the production of circular, sustainable alternatives to palm oil.
Francis Relaes, Managing Director Milcobel Premium Ingredients and Lars Langhout, CEO of NoPalm Ingredients
Milcobel
The agreement covers two critical pillars:
- A supply agreement for Milcobel’s whey permeate, a cheese byproduct, securing feedstock for NoPalm Ingredients’ demonstration factory in the Netherlands, (starting operations in 2026).
- A joint feasibility study for establishing NoPalm Ingredients’ first commercial factory at Milcobel’s Langemark site, with potential operations by 2028.
From whey permeate to sustainable oils: upcycling dairy by-products
Foodtech startup NoPalm Ingredients has developed a cutting-edge fermentation technology that produces oils and fats identical to conventional palm and other tropical oils, without using any palm-derived raw materials. Instead, the process uses agro-industrial side streams, such as whey permeate. This innovative approach is both circular and low emission, offering a viable alternative to palm oil, which is widely used in consumer products, but often linked to deforestation and environmental degradation.
Industrial trials confirm feasibility of whey-based fermentation
Industrial trials over the past two years have demonstrated the feasibility of using whey permeate as a feedstock for NoPalm Ingredients’ fermentation process. The technology consistently produced oils on specification at industrial scale, confirming compatibility with Milcobel’s streams.
“At Milcobel, our mission is to create the highest possible value for our cooperative members,” said Francis Relaes, Managing Director Milcobel Premium Ingredients. “More than 25 years ago, we made a strategic choice to focus on mozzarella. In 2022, our partnership with Arla Foods Ingredients to valorize whey protein retentate was a further reinforcement of our strategy and a significant step up in the valorisation of our whey permeate sidestream. This new collaboration with NoPalm Ingredients completes the loop: it brings the valorization of whey permeate higher up the value chain, turning it into sustainable, high-value oil ingredients for food and non-food. It not only strengthens our economic model but also reinforces our commitment to circularity principles and better impact for the planet.”
Co-location as a model for circular production
Both companies will further explore the operational feasibility of co-locating a NoPalm Ingredients factory at Milcobel’s Langemark site, including integration with existing infrastructure. By building factories adjacent to food production facilities and using local side streams, NoPalm Ingredients aims to drastically reduce emissions, land use, and waste, while bringing new economic value to existing infrastructure.
“This partnership proves the strength of our co-location model: turning side streams into high-value ingredients where they are generated, reducing transport and sharing infrastructure” said Lars Langhout, CEO of NoPalm Ingredients. “Working with Milcobel shows how a biotech startup and a dairy leader can create true circularity with economic and environmental value on both sides.”
Together, NoPalm Ingredients and Milcobel are showing how biotech and dairy can join forces to create high-value, sustainable ingredients at scale, building a food system that is resilient, circular, and future-proof.
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