Singapore’s Terra Oleo raises US$3.1M to transform agro-industrial waste to palm oil, cocoa alternatives

SINGAPORE – Foodtech startup Terra Oleo has secured US$3.1 million in seed funding to accelerate the development of sustainable alternatives to palm oil and cocoa butter. 

The round attracted investment from ADB Ventures, The Radical Fund, Elev8.vc, Better Bite Ventures, and a strategic corporate investor from the palm oil industry.

In addition to the capital raise, Terra Oleo has been selected for the 2025 Breakthrough Energy Fellows programme, an initiative founded by Bill Gates to support early-stage innovators whose technologies can reduce greenhouse gas emissions at a gigatonne scale. 

The recognition provides mentorship and funding support to help the company transition from the laboratory to the market.

Innovation through fermentation
Founded by Shen Ming Lee, Boon Uranukul, and Min Hao Wong, Terra Oleo utilises precision fermentation to transform agro-industrial waste into lipids that mimic and enhance the functionality of palm oil and cocoa butter. 

The company reports that its process cuts emissions by up to 86%, land use by 90%, and water use by 88% compared to traditional production methods.

“Our defensible tech edge lies in deep expertise in microbial strain engineering, which enables our yeast to directly produce application-ready specifications of high-value palm oil derivatives and cocoa butter equivalents,” said CEO Shen Ming Lee. 

She added that Terra Oleo sources cost-effective waste streams from starch, biodiesel, and oleochemical industries abundant across Southeast Asia, enhancing process economics while reducing reliance on virgin raw materials.

Ashley Gross, Vice President at Breakthrough Energy, said, “We’re honoured to work with talented founders who are tackling the most difficult climate and energy challenges around the world.” 

At full commercial scale, Terra Oleo estimates its technology could eliminate up to 900 million tonnes of CO2 annually from palm oil and cocoa supply chains. 

Currently scaling from lab to pre-pilot production, the company is conducting manufacturing trials in Singapore and Thailand, and is engaged in product validation with several global leaders in the food, cosmetics, and personal care sectors.

Tackling the palm oil and cocoa challenge
Palm oil remains one of the world’s most widely used fats, found in a variety of food, personal care, and household products. 

Its neutral flavour, stability at high temperatures, and preservative qualities make it highly versatile. However, its production is closely linked to tropical deforestation, biodiversity loss, and human rights concerns. 

Indonesia and Malaysia, which produce around 90% of the world’s palm oil, have faced widespread criticism for the forest fires and land clearing associated with their plantations.

Cocoa supply chains face similar challenges. Climate change, crop diseases, and extreme weather have reduced yields in West Africa, which is home to 60% of the world’s cocoa production. 

Cocoa prices have recently reached record highs as stockpiles have fallen to their lowest level in over a decade. These pressures highlight the urgent need for sustainable alternatives to conventional palm oil and cocoa butter.

Market outlook
The sustainable fats sector is rapidly advancing. In Europe, Dutch company NoPalm Ingredients recently partnered with dairy cooperative Milcobel to use whey permeate as a fermentation feedstock, while Estonia’s Äio completed a one-tonne production run of its palm oil substitute. 

With fresh funding and global recognition, Terra Oleo is positioning itself as a frontrunner in the race to decarbonise the fats and oils industry, offering both a technological edge and a market-ready solution at a critical time.

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