CO2 recycling powers a new palm oil alternative

September 05, 2025

A game-changer in green biotechnology

After years of intensive research, the Mibelle Group, LanzaTech, and the Fraunhofer Institute for Interfacial Engineering and Biotechnology IGB have developed a groundbreaking palm oil substitute. Using advanced biotechnology, the partners created a CO2-derived ingredient that can effectively replace palm oil in cosmetics, personal care, cleaning agents, and other everyday products.

This innovation not only reduces global dependence on palm oil but also builds more sustainable and resilient supply chains, setting new standards for eco-friendly production across industries.

Why the world needs palm oil alternatives

Palm oil is one of the most widely used raw materials worldwide. Its long shelf life, heat stability, and high yield make it indispensable in food, cosmetics, detergents, and even biofuels. However, palm oil cultivation comes at a high environmental cost:

• Deforestation: Vast areas of rainforest are cleared to establish palm plantations.
• Biodiversity loss: Endangered animal and plant species lose their natural habitats.
• Carbon emissions: Destroying forests releases massive amounts of stored CO2.

While the cosmetics industry has shifted toward certified sustainable palm oil, demand continues to grow faster than sustainable cultivation can provide. This makes the search for innovative, palm oil-free alternatives more urgent than ever.

The technology: turning CO2 into palm oil-free fats

The Mibelle Group and its partners have pioneered a two-step fermentation process that transforms harmful CO2 into a natural fat blend with properties similar to palm oil:

1. CO2-to-Alcohol Conversion – LanzaTech’s biotechnology converts captured carbon dioxide into alcohol through fermentation, a process comparable to brewing beer—except CO2 replaces grains.
2. Alcohol-to-Fat Transformation – Fraunhofer IGB developed the second stage, where oil yeasts convert the alcohol into palm oil-like fats.

Both steps rely exclusively on non-GMO, naturally occurring microorganisms, ensuring a safe, natural, and sustainable product.

The outcome is a versatile, high-quality fat that is palm oil-free, environmentally friendly, and enriched with skin-care benefits—making it particularly suitable for cosmetic applications.

From laboratory to large-scale production

After successful lab trials and product testing, the partners are now scaling the process to pilot production at the Fraunhofer Center for Chemical-Biotechnological Processes (CBP) in Leuna. This milestone paves the way for the first industrial-scale batches of CO2-based fats, which can then be integrated into eco-friendly cosmetics and potentially replace palm oil in other sectors.

Peter Müller, CEO of Mibelle Group, highlights:

“This milestone proves our long-term commitment to sustainable innovation. Together with LanzaTech and Fraunhofer IGB, we are building a future where high-performing products also protect the planet.”

Towards a palm oil-free future

By converting CO2 into sustainable raw materials, this breakthrough technology could drastically reduce rainforest deforestation, curb greenhouse gas emissions, and reshape the global supply chain for cosmetics and beyond.

With the support of raw material suppliers, the Mibelle Group envisions a future where more and more palm oil-based ingredients are replaced with this CO2-derived, sustainable alternative—helping protect biodiversity, fight climate change, and create greener consumer products.