Bill and Melinda Gates Foundation Invests $3.5M in Sustainable Palm Oil Alternative Startup

C16 Biosciences, a startup dedicated to creating sustainable alternatives to palm oil, has received an investment of $3.5 million from the Bill and Melinda Gates Foundation. This funding forms part of a broader initiative to combat the environmental impact associated with palm oil production, particularly its link to deforestation and climate pollution.

The company, which is backed by Y Combinator, is leveraging yeast and agriculturally derived feedstocks to ferment these alternatives. Notably, C16 Biosciences has already produced a palm oil alternative called Palmless, currently utilized in beauty products.

The newly acquired funds will enable C16 Biosciences to expand its research in creating new oil formulations for food applications, utilizing both waste stream and non-agriculturally derived feedstocks.

Palm oil, commonly found in a wide range of products such as soaps, biofuels, chocolates, and instant ramen, has faced criticism for its association with deforestation and climate pollution. Deforestation linked to palm oil production has significantly contributed to carbon dioxide emissions since 1850.

In addition to the investment from the Gates Foundation, C16 Biosciences has garnered support from Elemental Excelerator, a non-profit accelerator focused on climate tech with substantial community impact. Previous investors in the startup include Bill Gates’ Breakthrough Energy and DCVC.