Emerges Terra Oleo from secrecy, presenting a fermentation system for generating premium fats via microorganisms
Singapore-based startup Terra Oleo, founded in 2023 by Shen Ming Lee, Boon Uranukul, PhD, and Min Hao Wong, PhD, has raised $3.1 million in funding to revolutionise the production of fats for various industries. The funding round was backed by ADB Ventures, The Radical Fund, Elev8.vc, Better Bite Ventures, and other investors.
Terra Oleo's mission is to engineer yeast to produce fats that match specific customer requirements, including fatty acid profiles, triglyceride compositions, and melting behavior. The company's proprietary yeast strains produce slightly different fat profiles and melting ranges for cocoa butter, making it a promising alternative to traditional sources.
The startup employs synthetic biology to fine-tune the yeast's oil-making pathways, creating fats that match or exceed the properties of cocoa butter and specialty palm-derived ingredients. Terra Oleo also uses lower-cost feedstocks such as waste streams from starch, biodiesel, and oleochemical production, further reducing its environmental impact.
Growing interest in alternatives to palm oil and cocoa is being driven by pressure on supply chains, increasing costs, and supply volatility, as well as environmental concerns. Terra Oleo's innovative approach to fat production is timely, addressing these issues while maintaining high-quality products.
Terra Oleo has been selected to join Breakthrough Energy's 2025 Fellows Program, an honour that recognises the company's potential to make a significant impact in the industry. The startup plans to scale from lab to pilot scale and advance customer testing and validation.
For food applications such as chocolate, Terra Oleo's product is expected to be labeled as a "Cocoa Butter Equivalent." For non-food applications such as cosmetics and personal care, Terra Oleo's oils would be labeled according to their main fatty acids, which is the current industry standard. It is too early to determine the exact labeling for Terra Oleo's products in the food industry before they are in the market.
Terra Oleo co-manufactures in Thailand and Singapore and plans to scale up its first products through a mix of larger-scale co-manufacturing and potentially a joint venture with a manufacturing partner. The company has signed product testing agreements with firms in oleochemicals, food, personal care, and cosmetics, demonstrating strong industry support for its innovative approach.
In the non-food market, customers are more focused on performance, and labeling isn't a significant concern. However, Terra Oleo is committed to transparency and is working closely with regulatory bodies to ensure clear and accurate labeling for all its products.
As Terra Oleo moves forward, it aims to target markets in the US and Singapore. With its innovative approach to fat production, backed by significant funding and industry support, Terra Oleo is well-positioned to make a significant impact in the industry.
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