Terra Oleo launches with US$3.1 million funding and Breakthrough Energy backing to reimagine fats and oils

Singapore-based biotechnology company Terra Oleo has emerged from stealth with US$3.1 million in seed funding and selection for Breakthrough Energy’s 2025 Fellows Program, as it works to build sustainable alternatives to palm oil and cocoa butter.

The company’s platform uses precision fermentation to transform agro-industrial waste into microbial-derived lipids, producing bioequivalents of palm oil derivatives, cocoa butter, and specialty oleochemicals. These ingredients are designed for applications across personal care, cosmetics, pharmaceuticals, and food.

Terra Oleo’s co-founders – Shen Ming Lee, Boon Uranukul, PhD, and Min Hao Wong, PhD – say their approach combines deep expertise in synthetic biology and microbial engineering to address some of the most pressing supply chain challenges facing global fats and oils.

“We founded Terra Oleo to reinvent how we produce the fats and oils that power our everyday lives,” said Lee, who serves as CEO. “With support from the Breakthrough Energy Fellows program and our incredible investors, we are deeply honored and excited to bring sustainable, scalable alternatives to market and collaborate with partners to decarbonize palm oil and cocoa.”

Palm oil and cocoa, two of the world’s most widely used commodities, face mounting strain from climate instability, regulatory pressures, and land scarcity. Cocoa stocks fell 26% in 2024, pushing futures prices to record highs, while global palm oil exports dropped nearly 6% year-over-year amid rising demand and production constraints. These trends are driving higher costs and volatility across supply chains, creating urgent demand for alternative solutions.

Terra Oleo says its technology can deliver tailored lipid profiles for high-value palm and cocoa applications without the environmental burden of conventional production. Unlike traditional refining processes, which are energy-intensive and can produce toxic byproducts, the company’s process eliminates these steps, offering a cleaner and more efficient pathway to specialty fats and oils.

The platform also overcomes the limits of natural microbes, according to the company, enabling better unit economics and faster adoption compared with other fermentation-based solutions. At full scale, Terra Oleo estimates its technology could eliminate up to 900 million tons of CO₂ emissions annually from palm oil and cocoa supply chains.

To date, Terra Oleo has secured product testing agreements with a number of global and regional players in the oleochemicals, food, personal care, and cosmetics industries. These partnerships will allow the company to validate performance and begin market adoption.

“We’re honored to have the opportunity to work with talented founders who are tackling the most difficult climate and energy challenges around the world,” said Ashley Gross, vice president of Breakthrough Energy.

Breakthrough Energy’s Fellows Program is designed to support early-stage innovators developing technologies with the potential to reduce greenhouse gas emissions at gigaton scale. Terra Oleo’s selection provides funding, technical guidance, and access to Breakthrough’s global network, helping the startup advance from lab-scale experiments to pilot production while pursuing formulation testing with customers.

The company’s early investor base includes ADB Ventures, The Radical Fund, Elev8.vc, Better Bite Ventures, a strategic corporate investor from the palm oil industry, and others.

Terra Oleo’s founders bring a mix of scientific expertise, industry knowledge, and strategic experience. Wong and Uranukul lead the technical development, drawing on their backgrounds in microbial engineering and process optimization, while Lee focuses on business strategy and partnerships.

The company believes its close ties with the conventional palm oil industry will provide an advantage in scaling its platform and ensuring its ingredients can integrate seamlessly into existing supply chains.

With validation underway and early demand accelerating, Terra Oleo plans to expand capacity as it moves from lab to pilot production. It is also opening the door to collaborations with partners in the oleochemicals and specialty fats sectors interested in sampling its products or co-developing customized lipids.

As Lee put it, Terra Oleo’s mission is clear: “to decarbonize palm oil and cocoa without compromising on performance.”

(Main photo shows Co-founders Min Hao Wong, PhD, Shen Ming Lee, and Boon Uranukul, PhD, who bring together expertise in science, strategy, and industry to advance sustainable fats and oils)