Unilever and Geno’s US$120M venture to harness biotech for palm oil and fossil-fuel-free alternatives
16 Jun 2022 --- Amid a global oil crisis, Unilever, in partnership with Geno, is investing in its “largest” collaboration in biotechnology alternatives for unsustainable ingredients with a sum of US$120 million. They aim to commercialize and scale plant-based options for materials like palm oil and fossil fuels for ingredients used in cleaning and personal care products.
“This alternative ingredient will be used in addition to the sustainably sourced palm kernel oil that Unilever currently purchases,” Richard Slater, chief research and development officer at Unilever, tells PersonalCareInsights.
Slater estimates that companies may be able to reduce their carbon footprint of palm-derived ingredients by 50% with plant-based alternatives driven by technology.
An unstable future for palm oil dependency
The versatile ingredient has been facing price hikes at an all-time high, with top producing nations like Indonesia banning and then lifting the ban within the month of May, in a protectionist move.
In the long-term scope, however, Slater notes that alternative sustainable options that don’t rely on fossil fuels or add pressure to land use are much needed as the sector grows. “The additional optionality is also part of our strategy to ensure our supply chains are future fit and resilient in light of possible commodity fluctuations in availability or cost.”
“Geno’s collaboration with Unilever builds upon its track record of partnering with market leaders who are committed to accelerating the commercialization of sustainable materials in their industries – from clothing to now cleaning ingredients,” highlights Christophe Schilling, CEO at Geno.
“We’ve developed the technology in response to our planet’s urgent climate crisis. We’ve proven that biotechnology can replace traditional production methods to produce ingredients with bio-based sources that deliver both high-performance and sustainability, at scale.”
The venture is expected to lead to an effective and environmentally sustainable alternative to be offered to the roughly six billion-dollar home and personal care markets.
Addressing supply chains
Slater reiterates that one of the key benefits to finding palm alternatives is sustainability.
“In this initial stage, we are using sugar as the main feedstock [for the alternative], which goes through a fermentation process,” he details.
“Offering the same great cleansing benefits, but with a smaller environmental impact. However, as we progress we’d like to make this process even more sustainable by using the parts of crops that don’t currently make it into the supply chain – like the waste corn stubble that’s left in a field after a harvest.”
Slater also shares that a lifecycle analysis shows that this is a lower carbon alternative.
“It will mean we can use feedstocks that are close to future production hubs, shortening freight distances too. Optionality is also needed to ensure we can grow our business without increasing reliance on palm and also ensure our supply chains are resilient in the face of any ingredient shortages or pricing fluctuations.”
Biotechnological revolution
Schilling underscores: “Our technology enables pathways for alternative sourcing of materials whose supply chains often have limited social and environmental transparency by offering more resilient supply chains that are transparent, traceable and responsibly sourced, as consumers demand.”
The company adds that Geno technology can potentially reduce greenhouse gas emissions by 100 million tons in the following years.
“Biotechnology has the potential to revolutionize the sourcing of our cleansing ingredients,” adds Richard Slater, chief research and development officer at Unilever.
“This venture will sit at the intersection of science and sustainability, meaning we can continue to grow our business without relying only on palm oil or fossil fuel derivatives while also making our supply chains more resilient from having access to ingredient alternatives.”
Return on green investment
With the growing demand for sustainably-sourced palm oil, the venture expects other investors to join the enterprise to develop an alternative plant-based ingredient via biotechnology.
“We will be marrying science and nature to ensure there is no trade-off for our consumers between the efficacy and sustainability of their products. We are building this innovative new venture to have the scale to drive real impact and change in our industry, helping to reinvent the chemistry of home and personal care products for the 21st Century,” comments Slater.
Geno’s biotechnology will first target cleaning and personal care products that need lather and lift, such as foaming skincare.
The company has already begun to scale its process for its technology to produce the ingredients.
The vegetable oil crisis
The increasing palm oil prices and the growing need for eco-friendly alternatives can perhaps inspire the industry toward creating a palm oil-free future.
Just recently, the Members of Action for Sustainable Derivatives, Estée Lauder Companies Charity Foundation, Natura & Co, Seppic and other healthcare and oleochemical companies collectively formed the ASD Impact Fund to support the Inobu Mosaik Initiative. The Initiative aims to create eco-systems for sustainable and scalable palm oil production while supporting local communities in Indonesia.
The Roundtable on Sustainable Palm Oil also collaborated with the Jambi province government in Indonesia to scale up oil palm smallholder inclusion in the sustainability ecosystem through ISPO certification.
The war in Ukraine has also impacted the supply of oils like sunflower – which is also used as an ingredient in cosmetics.
“Around 70% of the global sunflower lecithin production occurs in Ukraine and Russia. So, the war in Ukraine hit the industry very hard,” says Dr. Roland Rabeler, business development manager at Sternchemie.
The sunflower shortage has led companies like Sagentia Innovation to suggest using alternatives with scientific backing.
Why palm oil?
On asking why palm oil is used in the industry, Slater explains that they are mainly affordable
“Palm has been proven to be the most land efficient vegetable oil, with oil palms providing 39% of the global production of vegetable oil, whilst only occupying 7% of agricultural land for oil seeds,” he shares.
“This makes it a very affordable feedstock to create ingredients like the fatty alcohol that goes into surfactants – the cleansing ingredient that lathers to lift dirt and oil, and used in formulations for a wide array of products like soaps, shampoos and detergents.”
Slater explains that biotechnology in the past showed promising results for alternatives, however, it was not at a stage where it was scalable nor commercializable.
“Thanks to advances in biology, engineering and – importantly – digital technology, we are now at this stage. We’re moving from trial-and-error physical experiments to using data, virtual modelling and AI to dramatically speed the process and improve the chance of success at commercial scale,” he continues.
Unilever says its products are used globally by 3.4 billion people every day and are increasingly partnering with biotech companies to excavate ways of manufacturing alternatives to traditional ingredients.
By Venya Patel
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