Late last year, Milcobel, a leading Belgian dairy cooperative, and NoPalm Ingredients, a biotech pioneer in sustainable palm oil alternatives, announced a partnership to upcycle whey permeate into circular, eco-friendly oils. This collaboration not only valorizes Milcobel’s whey permeate, but also secures a critical feedstock for NoPalm Ingredients’ upcoming demonstration facility, set to launch this year (2026).
Additionally, per the companies, the partnership includes a feasibility study to co-locate NoPalm Ingredients’ first commercial production unit at Milcobel’s Langemark site, with operations targeted for 2028.
Partnership for Circular Innovation
The agreement focuses on two key initiatives:
- Feedstock supply agreement: Milcobel will supply whey permeate, a byproduct of cheese production, to NoPalm Ingredients’ demonstration factory in the Netherlands, ensuring a steady stream of raw materials for sustainable oil production.
- Feasibility study for co-location: Both companies will explore the potential of establishing NoPalm Ingredients’ first commercial production facility at Milcobel’s Langemark site, leveraging existing infrastructure to maximize efficiency and minimize environmental impact.
From Dairy Byproducts to Sustainable Oils
According to the companies, NoPalm Ingredients has developed a groundbreaking fermentation technology that transforms agro-industrial sidestreams such as whey permeate into oils and fats identical to conventional palm and tropical oils. This innovative process eliminates the need for palm-derived raw materials, offering a sustainable, low-emission alternative to palm oil, which is often associated with deforestation and environmental harm.
Proven Feasibility Through Industrial Trials
Over the past two years, industrial trials have confirmed the viability of using whey permeate as a feedstock for NoPalm Ingredients’ fermentation process. The trials consistently produced high-quality oils at an industrial scale, demonstrating compatibility with Milcobel’s whey permeate streams, per the companies.
Francis Relaes, managing director of Milcobel Premium Ingredients, stated, "More than 25 years ago, we made a strategic choice to focus on mozzarella. In 2022, our partnership with Arla Foods Ingredients to valorize whey protein retentate [further reinforced] our strategy. ...
"This new collaboration with NoPalm Ingredients completes the loop: it brings the valorization of whey permeate higher up the value chain, turning it into sustainable, high-value oil ingredients for food and non-food. ..."
Co-Location: A Model for Sustainable Production
The partnership also highlights the potential of co-locating production facilities to enhance circularity. By building factories adjacent to food production sites and using local side streams, NoPalm Ingredients aims to reduce emissions, land use and waste while creating new economic value.
“This partnership proves the strength of our co-location model: turning side streams into high-value ingredients where they are generated, reducing transport and sharing infrastructure,” said Lars Langhout, CEO of NoPalm Ingredients. “Working with Milcobel shows how a biotech startup and a dairy leader can create true circularity with economic and environmental value on both sides.”
