NoPalm Ingredients to build first yeast oil demonstration factory at NIZO Food Innovation Campus

NoPalm Ingredients has signed an agreement with NIZO Food Research to establish its first demonstration factory for yeast-derived palm oil alternatives at the Food Innovation Campus in Ede. The move marks the company’s transition from pilot operations to commercial-scale production and represents a key milestone in the development of sustainable oil alternatives.

“The step towards our first factory is a concrete milestone in our ambition to become a leader in yeast oil production,” commented Lars Langhout, CEO & Founder of NoPalm Ingredients. “From a shaking flask and a microscope in the lab, we are now building our own factory: dreams are becoming reality. As pioneers, we are showing the industry that yeast oils no longer only exist in the lab, but can also be produced at large scale, and that we are a reliable partner for sustainable oil alternatives.”

Until now, the company has relied on multiple locations for its production steps. Bringing the entire process under one roof will reduce costs, save time, and accelerate scaling. Initial output is expected to be several hundred tons per year, with the capacity to grow beyond 1,200 tons. This level of production will allow food manufacturers to replace conventional oils in their products with more sustainable alternatives. The site will also be used to test new raw materials and process improvements.

“For our customers, this factory demonstrates that we are ready to deliver at industrial scale,” added Julie Cortal, Chief Commercial Officer at NoPalm Ingredients. “We have proven that our technology works, and by taking the entire process into our own hands, we maintain maximum control over every step: from raw material to end product. This guarantees consistent quality, high standards, and security of supply – and with that, a solid foundation for long-term partnerships with customers who want to become more sustainable and grow.”

Founded in Wageningen, NoPalm Ingredients develops yeast oils as alternatives to palm oil, a commodity associated with significant deforestation and environmental impact. By applying fermentation to fats, the company is expanding the role of biotechnology beyond protein innovation.

NIZO’s Food Innovation Campus, launched in 2023, is designed to foster collaboration between companies working on the transition to more sustainable proteins and food systems. Its CEO, Nikolaas Vles, said the partnership fits squarely within the organization’s mission.

“The arrival of NoPalm Ingredients fits perfectly with our ambition to further develop the NIZO Food Innovation Campus into the place for sustainable food innovation,” Vles said. “They strengthen the fermentation cluster in the region and apply fermentation to fats – an often overlooked but essential part of both the protein and food transition.”

By making use of NIZO’s existing infrastructure, NoPalm Ingredients will be able to accelerate construction of its factory and keep costs lower. The first industrial production of yeast oil is expected in the second half of 2026, with further scaling planned for 2027 and 2028. The factory is expected to employ around 25 people, in addition to the company’s current 25 employees at its headquarters in Wageningen.

“With this factory, we are taking our technology to ‘technology readiness level’ 7 and 8, and bringing the full process under our own control at industrial scale,” said Jeroen Blansjaar, Chief Operating Officer at NoPalm Ingredients. “This is the crucial step that paves the way for our first commercial factory, which we aim to build together with a sidestream partner at their site. This significantly reduces risks, both for ourselves and for our partners.”

The agreement for the new site was made possible with the support of Oost NL, the Province of Gelderland, and the Municipality of Ede. Both NoPalm Ingredients and NIZO acknowledged the role of these regional partners in enabling the project and advancing circular food production in the area. The permitting process is already underway and is proceeding according to plan.

For NoPalm Ingredients, the demonstration factory is more than just a production facility. It is designed as a stepping stone toward large-scale commercialization, with the aim of providing consistent, sustainable alternatives to conventional oils for global markets.

At the same time, the move strengthens Ede’s position within the Food Valley region of the Netherlands, a hub recognized internationally for its expertise in food science, fermentation, and sustainable biotechnology. The combination of NoPalm Ingredients’ yeast oil technology and NIZO’s research infrastructure underlines how the region is becoming a focal point for companies working on the food transition.

Langhout emphasized that this new chapter for the company is not just about scaling technology but also about signaling confidence to the broader market. “As pioneers, we are showing the industry that yeast oils can be produced at industrial scale and that we are a reliable partner for sustainable oil alternatives,” he said.

With the demonstration factory on track to begin operations in 2026, NoPalm Ingredients will soon be in a position to supply customers at scale, while continuing to refine and expand its technology. The agreement with NIZO sets the stage for what the company hopes will be the first of several commercial factories in the years ahead.