Milcobel & NoPalm Turn Dairy Waste into Sustainable Oil

Belgian dairy cooperative Milcobel has entered a strategic partnership with biotech startup NoPalm Ingredients to convert whey permeate (a cheese byproduct) into sustainable palm-oil alternatives. The demonstration facility starts in 2026, and a full commercial plant could be established at Milcobel’s Langemark site by 2028. The collaboration aims to create circular economic value, reduce waste, and lower environmental impact.

Industry Insights

• Circular Economy in Dairy: This move highlights how byproduct streams—often seen as waste—are being reimagined as valuable raw materials. Whey permeate is abundant in cheese-making; turning it into usable oil/fat closes value loops and reduces disposal burdens.

• Sustainability+. The substitute oil behaves like conventional palm oil but avoids the environmental costs tied with palm oil production like deforestation. That could appeal strongly to consumer brands seeking greener supply chains, especially those under ESG pressure.

• Facility Co-location & Efficiency: Using Milcobel’s existing infrastructure (Langemark) for feedstock supply and possible factory setup reduces transport, capital cost, and carbon footprint. Shared infrastructure and local sourcing are cost-savvy and sustainable.

• Scale & Feasibility: The demonstration plant launching in 2026 will test real world performance; success there will be crucial for commercial scale-up in 2028. If yield, purity and cost per unit are acceptable, this could be a replicable model globally.

• Risks & Challenges: Technological consistency, regulatory approvals for food/non-food applications, and market acceptance are hurdles. Also, the economics of fermentation-based oil vs traditional oils depends heavily on scale and energy/feedstock costs.

• Broader Impacts: This kind of innovation can raise margins for dairy cooperatives by extracting more value per unit milk processed. Could also create new job/skill opportunities in biotech, fermentation, and downstream processing.

• Source : DAirynews7x7 Sep 21st 2025 Read full story here