Singapore-based Terra Oleo has secured $3.1 million in funding to advance its sustainable oil production technology. ADB Ventures, Better Bite Ventures, Elev8.vc, and The Radical Fund led the investment round, joined by a strategic corporate investor from the palm oil industry and other participants. This Terra Oleo funding supports the development of microbial alternatives to conventional palm oil.
Terra Oleo develops microbes that transform agricultural waste into various oils. The company aims to replace destructive palm oil plantations, which contribute to widespread deforestation. Furthermore, its technology focuses on producing high-value oleochemicals.
Advancing Microbial Oil Innovation
The startup, co-founded by Shen Ming Lee and Boon Uranukul, emerged in 2022. It operated in stealth for nearly two years, refining its proprietary microbial processes. The company also participates in this year’s Breakthrough Energy Fellows cohort.
Terra Oleo specifically engineers yeast species to produce fats and triglycerides. This biotechnology approach yields products like cocoa butter and specialty oils for the cosmetic and pharmaceutical industries. Other innovators, such as C16 Biosciences, also pursue sustainable alternatives to traditional palm oil.
Currently, Terra Oleo produces oils at a gram scale. The recent Terra Oleo funding will enable production at kilogram quantities. Consequently, the company anticipates significant cost advantages and high margins for its specialty oleochemicals. This approach offers a compelling path towards more sustainable solutions in the oleochemical sector.
The world produced nearly 79 million metric tons of palm oil last season. Terra Oleo aims for a gradual transition, collaborating with the existing industry. This strategy seeks to diversify the global production mix.
