Palm Oil Is Destroying the Rainforests: Could Sawdust Be the Solution?

EAT

Feb 16

This startup has found a way to convert agricultural and wood industry byproducts, such as sawdust, into oil. The initiative has now received $1.2 million in funding to bring the product to market by 2026.

To combat environmental destruction, a biotech startup has developed a process capable of converting agricultural and wood industry byproducts, such as sawdust, into alternative fats. The Estonian-based company Äio has now secured €1 million ($1.2 million) in funding to support its mission to transform the food system.

Oil production has a devastating effect on the environment, from deforestation and habitat destruction to the emission of harmful greenhouse gases. As the world’s most common vegetable oil, palm oil is one of the biggest offenders.

Used in food manufacturing, beauty products, and to create biofuel, an estimated 77 million tonnes of palm oil was produced in 2018 alone. This figure is expected to rise to 107.6 million tonnes by 2024, ramping up pressure on rainforests, vast sections of which have already been razed to the ground across South America and Asia to make way for palm oil estates.

This extortionate demand for palm oil is destroying the homes of endangered animals, notably orangutans, Sumatran rhinos, and pygmy elephants, pushing them even closer to the brink of extinction.

Drawing on results from years of biotech research, Äio founders Petri-Jaan Lahtvee and Nemailla Bonturi have been exploring a solution to replacing these environmentally-destructive oils with sustainable, game-changing alternatives.

Biotech researcher and Äio co-founder, Nemailla Bontur. Credit: Äio

Using a “red bug” microbe created and patented by Bonturi, agriculture sidestreams are converted into nutrient-rich, healthy fats through a fermentation process, similar to how beer is brewed.

The edible RedOil can be used to replace oils in a wide range of food products, as well as cosmetic applications and household cleaning products, replacing petrochemicals and palm oil derived chemicals.

“In the same way that we make kombucha, yogurt, bread and beer, we can turn sawdust or other low-value biomass into valuable and healthy ingredients,” said Bonturi. “Our ‘red bug’ cannot turn water into wine, but it can turn sawdust into food.”

“As scientists, we were excited that years of research resulted in a real product that could revolutionize the entire food industry and consumer experience,” added Lahtvee.

Nordic Foodtech VC, EAS, and other partners supplied the funding. Äio says it will use the capital to increase production capacity, test the fats in collaboration with the food industry, and apply for the novel food permits required to bring its products to Europe, with plans to launch on an industrial scale by 2026.

“Turning low-value side-streams into something so valuable is very futureproof and has great scalable business potential,” Mika Kukkurainen, partner and founder of Nordic Foodtech VC, said in a statement. “We are happy to join Äio when taking the first steps outside of university, and already looking forward in helping the team towards future success.”

Learn more about the damage being done by palm oil plantations by listening to our new podcast episode with Leif Cocks, the founder of The Orangutan Project. Our founder Elizabeth Novogratz spent ten days with Leif, learning more about the fighting for the last scraps of the rainforest in Sumatra and Borneo.

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