Revolutionising sustainable oils: How ÄIO Technologies intends to challenge the palm oil industry

Mary-Liis Kütt, PhD, CIO at , ÄIO TechnologiesThe global food industry faces an urgent dilemma: how to meet the growing demand for oils and fats while minimising environmental harm. According to the World Wildlife Fund’s Living Planet Report (2022), food production has contributed to a 70 per cent loss of biodiversity on land and a 50 per cent loss in freshwater ecosystems.At the centre of this challenge is palm oil, a widely used but environmentally destructive ingredient.

ÄIO Technologies, a biotech startup spun out from Tallinn University of Technology in Estonia, is pioneering a sustainable alternative. Founded in 2022 by Dr Nemailla Bonturi (CEO) and Dr Petri-Jaan Lahtvee (COO), the company is developing microbial lipid products that intend to replace palm oil, coconut oil, and animal fats.By leveraging proprietary yeast strains to upcycle industrial side streams into value-added ingredients, ÄIO Technologies is setting a new standard for circular economy practices in the oleochemical sector.

Palm oil dominates global supply chains, with over 80 per cent of production concentrated in Malaysia and Indonesia. This monoculture farming practice leads to deforestation, carbon emissions, and biodiversity loss. ÄIO Technologies’s innovative solution offers an alternative that requires 100 per cent less land, uses ten times less water, and is ten times faster to produce than traditional plant or animal-derived oils.

Also Read: Agros lands US$4.25M Series A to scale climate-resilient farming in IndonesiaThe startup’s microbial lipids can be used across multiple industries, including food, cosmetics, biofuels, and household chemicals. Unlike traditional methods, which depend on resource-intensive plantations, ÄIO’s technology converts agricultural and industrial by-products into high-value oils.

This reduces dependency on land-intensive crops and mitigates greenhouse gas emissions, a crucial factor given the industry’s current environmental footprint.Scaling up and market readinessDespite its technological breakthrough, ÄIO Technologies remains pre-revenue and is navigating regulatory approval processes to commercialise its ingredients. The company is actively seeking permits in key markets, including Singapore, to introduce its novel food products.

“We are still discussing how to upscale production,” said Dr Mary-Liis Kütt, CIO at ÄIO Technologies, in a presentation that e27 attended at the university. “Singapore is one possible site, and we are looking for strong partners to enable continuous production and apply different novel food applications.”ÄIO has secured investor funding to sustain operations and is currently evaluating potential collaboration opportunities with institutions such as A*STAR, CPIP, and ScaleUp Bio in Singapore.

The company is also in discussions with the Singapore Food Agency to ensure regulatory compliance.At the heart of ÄIO Technologies’s model is a commitment to sustainability and circular economy principles. The company works with partners to identify industrial side streams that can be converted into microbial lipids.

This approach not only reduces waste but also provides businesses with sustainable ingredients for testing and development.Also Read: The future of farming in the Asia Pacific is here to empower farmers“If we could utilise just seven per cent of Brazil’s annual agricultural waste, we could replace 30 per cent of the palm oil used in the country and mitigate 100 million tonnes of CO2 emissions,” Dr Kütt explained. “At an industrial scale, our process can compete with conventional palm oil production costs.

”ÄIO Technologies’s ability to repurpose waste streams into valuable products underscores its potential to disrupt the market. By demonstrating viable alternatives, the company is challenging long-standing supply chains while aligning with global sustainability goals.The palm oil industry, projected to reach a market value of US$98 billion by 2030, has long been criticised for its environmental impact.

Yet replacing it on a global scale is no small feat.“Even if we capture just one per cent to two per cent of the palm oil market, we would be in a very strong position,” Dr Kütt noted. “Our technology proves that sustainable alternatives can be produced efficiently without harming biodiversity.

”The oleochemical industry, which encompasses a broad range of applications beyond food, is expected to be worth over US$36 billion by 2027. With its ability to provide tailored lipid solutions, ÄIO Technologies is positioning itself as a major player in this space.While initial plans for demo-scale production are centred in Estonia, ÄIO Technologies is exploring global expansion opportunities.

Singapore, with its robust research ecosystem and food innovation initiatives, is a key consideration for future operations.A sample of cookies made using the company’s alternative oils“We are actively looking for a location to build our demo-scale production and are in discussions with several partners to establish full-scale production globally,” Dr Kütt said.ÄIO’s recognition as one of the Top 50 Global Startups at SLINGSHOT 2023 in Singapore further validates its potential.

Securing strategic partnerships will be critical to scaling operations and market adoption as the company advances towards commercialisation.Also Read: HiFeed aims to revolutionise cattle farming with pre-seed fundingAs the world grapples with environmental challenges, ÄIO Technologies presents a compelling case for sustainable innovation. By replacing conventional oils with eco-friendly microbial lipids, the company offers a tangible solution to reduce carbon emissions, enhance biodiversity, and promote responsible production.

With regulatory approvals on the horizon and expansion plans underway, ÄIO Technologies is poised to become a key disruptor in the global oil and fats industry. The transition to sustainable alternatives is no longer a vision for the future—companies like ÄIO are making it a reality today.—Image Credit: Kristiina Tammik, Trade EstoniaThe post Revolutionising sustainable oils: How ÄIO Technologies intends to challenge the palm oil industry appeared first on e27.

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