Milcobel, NoPalm Ingredients partner to turn dairy byproducts into sustainable oils

NETHERLANDS – Dutch biotech start-up NoPalm Ingredients has announced a strategic partnership with Milcobel, Belgium’s leading dairy cooperative, to transform dairy byproducts into sustainable, high-value oils.

The agreement marks a significant step toward establishing a circular production model that reduces environmental impact.

Under the partnership, Milcobel will supply whey permeate, a byproduct of cheese production, to NoPalm Ingredients’ first demonstration factory in the Netherlands.

The facility, scheduled to begin operations in 2026, will use this stream as feedstock, giving new value to what has traditionally been considered a low-value byproduct.

By securing a steady supply, the collaboration provides the foundation for scaling up NoPalm’s innovative fermentation technology.

Developing a co-located factory in Langemark

Beyond the demonstration site, the two companies have committed to conducting a joint feasibility study for establishing NoPalm Ingredients’ first commercial production facility at Milcobel’s Langemark site. 

If successful, the factory could begin operations by 2028. Co-locating production next to Milcobel’s dairy operations would allow for the direct conversion of whey permeate into sustainable oils on-site, eliminating transport needs and supporting a more efficient, circular model.

From byproducts to high-value oils

NoPalm Ingredients has developed a proprietary fermentation process that creates oils and fats with the same functionality as palm and tropical oils, but without relying on palm-derived raw materials. 

Instead, the technology upcycles agro-industrial side streams like whey permeate. The process is low-emission, sustainable, and avoids the deforestation issues often linked to palm oil production.

Over the past three years, industrial trials have proven that whey permeate can be successfully used as feedstock, producing oils that meet industry specifications at scale. 

This gives both partners confidence that the model can be replicated on a commercial level.

Francis Relaes, Managing Director of Milcobel Premium Ingredients, emphasized the importance of the collaboration, “This new partnership with NoPalm Ingredients completes the loop, moving whey permeate up the value chain by turning it into sustainable, high-value oil ingredients. It strengthens our economic model and reinforces our commitment to circularity.”

He noted that the collaboration builds on Milcobel’s long-term strategy, which began with a focus on mozzarella more than 25 years ago and expanded in 2022 through a partnership with Arla Foods Ingredients to valorize whey protein retentate. 

Together, these initiatives underline Milcobel’s commitment to maximizing the value of its raw materials and driving sustainability across the dairy supply chain.

By building factories alongside existing food production sites, NoPalm Ingredients aims to cut emissions, land use, and waste drastically. 

Sharing infrastructure with food producers like Milcobel creates efficiency while maximizing value from local side streams.

Lars Langhout, CEO of NoPalm Ingredients, said, “This partnership proves the strength of our co-location model, turning side streams into high-value ingredients where they are generated. It shows how a biotech start-up and a dairy leader can create true circularity with both economic and environmental benefits.”

The collaboration highlights how traditional food producers and biotechnology companies can work together to build a more sustainable and resilient food system. 

With commercial operations targeted for 2028, the partnership between NoPalm Ingredients and Milcobel may set a new standard for low-emission, resource-efficient ingredient production in Europe and beyond.

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