Kao signs supply deal with Future Origins for palm-free surfactant

Future Origins has entered a multi-year purchase agreement with Kao Corporation for its palm oil alternative, NALO. The agreement marks the company’s largest deal for sustainable C12/C14 fatty alcohol. 

NALO is designed as a drop-in replacement for conventional palm-derived ingredients commonly used in surfactants for detergents, soaps, and cosmetics. It will be produced at an industrial scale in the US. The agreement secures offtake for most planned capacity from Future Origins’ first commercial-scale manufacturing plant. 

“Companies across the globe are looking for ingredients made from more resilient and traceable supply chains, and Future Origins has developed NALO to meet that need,” says John Gugel, CEO of Future Origins.

Future Origins, a joint venture launched by Geno with backing from Unilever, Kao, and L’Oréal, is focused on commercializing sustainable home and personal care ingredients. The company has initiated an early access program to provide pre-commercial samples of NALO, with several tons of the purified product expected to be available for sampling later in 2025.

Daisuke Hamada, Kao’s technical manager in charge of Chemical Business, says that sourcing NALO is part of the company’s efforts to develop more resilient and traceable supply chains, particularly for bio-based ingredients.

“This development will be important for supplying enough materials to maintain our quality of life and also essential for protecting palm tree forests to conserve the planet’s environment. Additionally, Kao will promote these materials to be incorporated into consumer products. Thus, Kao further reinforces its commitment to sustainable material sourcing by establishing transparent and traceable supply chains,” says Hamada.

Future Origins is evaluating sites in the US Midwest region for its first manufacturing facility and selecting locations based on feedstock availability.

Personal Care Insights speaks to Priti Pharkya, senior VP of Business Operations at Future Origins, about how NALO compares to traditional palm-based ingredients.

Can you explain how NALO’s supply chain is more resilient or traceable compared to traditional palm-based ingredients?
Pharkya: The cleaning industry has faced several supply chain disruptions in recent years, including with palm oil, due to factors such as deforestation, geopolitical issues, and looming regulations. We know that if a material is unavailable for a short while, it leads to significant price volatility and often impacts business operations. 

Kao Corporation creates a pam-free alternative for household surfactants.In comparison, NALO will be produced at an industrial scale in the US at a manufacturing plant in the Midwest that is home to large volumes of high-quality, locally sourced, renewable feedstocks.

Why is it important for NALO to have a US-based manufacturing site?
Pharkya: In the US, the Midwest is home to large volumes of high-quality, low-cost feedstocks that are required for the production of NALO. It is also centrally located for efficient distribution across the country.

This decision will positively impact domestic supply chain resilience by strengthening the availability of sustainable, locally produced ingredients. Manufacturing NALO in the US will reduce reliance on imported palm oil and its associated supply chain risks, creating a more secure and traceable source of ingredients.

What are the main environmental benefits of using NALO instead of palm oil-based fatty alcohols?
Pharkya: NALO is a low-carbon, deforestation-free material. While being a palm alternative is a key advantage of NALO, the broader environmental benefits of bioengineered ingredients extend beyond just being deforestation-free.

NALO is produced using plant-derived sugars through a fermentation process, resulting in lower carbon emissions than traditional palm oil production. This results in a lower environmental impact in terms of resource use, and because NALO can be made with renewable, locally sourced feedstocks, the carbon footprint is further reduced.