C16 Biosciences - Sustainable Alternative for Palm Oil

A sustainable alternative to palm oil – $20 million in investment

C16 Biosciences is a biotechnology firm that uses microbiology to brew sustainable alternatives to palm oil.

C16 Biosciences-Sustainable Alternative for Palm Oil

To replace the palm oil production that is destroying tropical forests, a technology is being developed to produce an alternative to a bioreactor using yeast, which Bill Gates is investing in.

Production of alternatives to palm oil in a fermentation method similar to beer production using yeast grown at low cost using food waste or biofuel by-products.

Business

C16 Biosciences was founded with the objective of creating a sustainable, environmentally friendly alternative to conflict palm oil. By offering producers, refiners, traders, and consumers of palm oil an opportunity to invest part of their production into bio-based oils and sustainability efforts, Its aim is to reduce the environmental footprint of palm oil production and protect precious natural land, wildlife, and resources.

C16 Biosciences' palm oil is sustainable which doesn't involve deforestation, endangering precious animal species, or forcing inhumane labor practices.

The result is a world where consumers can enjoy the products they love without worrying about the dangerous practices involved in making them.

General Information

Headquarters : New York, NY
Founders : David Heller, Harry McNamara, Shara Ticku
Categories : Biotechnology, Innovation Management, Organic
Founded : 2017
Contact : shara@c16bio.com

Funding

Funding Rounds (2) - $24.0M
Mar 2, 2020 Series A / $20M
Aug 20, 2018 Seed Round / $4M

1. Reason for attention

In the mid-1990s, the harmfulness of vegetable oil became known, and large food companies rapidly switched to trans fat-free palm oil, and now more than 50% of products use palm oil. $93 bil in 2021 expected to create a market

Palm oil is produced on tropical farms, which causes deforestation and even the burning of tropical forests from a cost standpoint, causing serious environmental problems.

Alternatives to palm oil are continuously being developed, but there is a limit to the high price and small quantity.

C16 attracts investment from Breakthrough Energy Ventures, which is investing in target companies with the goal of reducing 500 million tons/year of GHG in recognition of its proprietary technology (Bill Gates, Jeff Bezos, Richard Branson, Michael Bloomberg, etc.)

2. Current business status

C16 is developing a technology to produce an environmentally friendly alternative to palm oil by supplying yeast with glycerol from food waste and biofuel production.

Currently producing about 10kg per week, but based on the investment, the facility will be expanded to produce 1,000kg per week, which is a level that can be supplied to the cosmetic or food business.

3. Competition

Kiverdi Inc. (USA)

Using microorganisms to convert carbon dioxide from waste into substitutes such as palm oil and meat

Revive Eco (Scotland)

Confirmation of oil extraction potential of palm oil-like constituents from coffee grounds. A plan to expand to a commercial scale is being studied.
Coffee grounds left after oil extraction are used as natural chemicals or soil aids

Biteback (Indonesia)

Sustainable extraction of fats and oils by growing edible insects
Insect farm can be expanded vertically, so it can produce 40 times more palm oil substitute than tropical forest in the same area

4. Future Prospects

Various technologies for palm oil substitutes have been tried and verified, but there is still a long way to achieve commercial economic feasibility.

The process of oil extraction after oil production using microorganisms occupies the highest cost, and as there are research results arguing that it is impossible to secure economic feasibility with any current technology in this area, secure economic feasibility in terms of technology or scale We need to see if we can come up with a possible breakthrough.