Unilever and Genomatica Partner on Plant-based Ingredients
Consumer goods giant Unilever and biotech specialist Genomatica are to jointly invest $120 million in a new venture to commercialize plant-based alternatives to feedstocks such as palm oil and fossil fuels used in cleansers for home care, beauty and personal care products.
The investment is the largest that Unilever has made to date in bio-based alternatives to palm oil. The company has committed to ensuring a deforestation-free supply chain for palm oil by 2023. Other strategic investors are expected to join the venture, which the two companies said could be a game-changer for the home, beauty and personal care markets that together are worth $625 billion.
Genomatica will deploy its biotechnology platform and is already starting to scale the fermentation process that uses sugar to convert microorganisms into an “exclusive” ingredient needed to make surfactants, which are integral to all cleansing products, helping them to foam, lather and lift dirt.
“We’ve developed technology in response to our planet’s urgent climate crisis and have proven that biotechnology can replace traditional methods to produce ingredients with bio-based sources that deliver both high performance and sustainability,” said Genomatica CEO Christophe Schilling.
The California-based company added that initial estimates have shown that companies could reduce the carbon footprint of palm-derived ingredients by up to 50% with its technology-driven, plant-based alternative.
“Biotechnology has the potential to revolutionize the sourcing of our cleansing ingredients and ensure Unilever is a future-fit business – for consumers, shareholders and the planet we all share,” said the Dutch-based multination group’s chief research & development officer Richard Slater.
This new venture, Slater said, “will sit right at the intersection of science and sustainability, meaning we can continue to grow our business without relying on palm oil or fossil fuel derivatives.” Having access to alternative ingredients will make supply chains more resilient, he added.
While palm oil will remain an important feedstock for Unilever, the multinational group said alternative ingredients can play a growing role in diversifying supply chains to offer greater choice alongside sustainability, cost efficiencies and transparency.
Author: Elaine Burridge, Freelance Journalist
