Terra Oleo’s oil-producing microbes could replace destructive palm oil plantations

Terra Oleo is a Singapore-based startup founded by Shen Ming Lee and Boon Uranukul that aims to develop sustainable alternatives to palm oil by using engineered microbes to convert agricultural waste into specialty oils. Lee, who grew up in a family deeply involved in the palm oil industry but felt conflicted about its environmental impact, teamed up with Uranukul, who had developed microbes capable of producing plastic precursors from waste during his doctoral research at MIT. Since 2022, Terra Oleo has been working stealthily to harness yeast species genetically optimized to produce high-value oils such as cocoa butter and specialty oleochemicals used in cosmetics and pharmaceuticals, bypassing the low-margin crude palm oil commodity stage. The startup has raised $3.1 million from investors including ADB Ventures and Better Bite Ventures, and is currently producing oils at a lab scale with plans to scale up to kilogram quantities. Terra Oleo’s microbial process offers significant cost advantages by producing target chemicals directly, eliminating expensive refining steps and potentially achieving