Sustainable materials company Genomatica (Geno) welcomes global consumer products and chemical company Kao Corporation to its venture to scale and commercialize plant-based alternatives to palm kernel oil. Kao joins Unilever as a founding member. Geno's technology reportedly also offers alternatives to fossil fuel-based ingredient sources.
With growing global demand for sustainably sourced palm oil, the venture will strengthen supply chain resiliency in the $652B home and personal care industries and increase the global supply of responsibly sourced palm oil alternatives to the market, according to Geno. Initial research reportedly shows that companies can reduce the carbon footprint of palm-derived ingredients by up to 50% with Geno's plant-based alternative.
Kao's investment adds to Geno's previously announced $120M venture with Unilever and increases the production capability of the palm kernel oil alternative. It is also a significant step toward achieving Geno's goal to reduce greenhouse gases by 100 million tons in upcoming years, according to the company. Geno says Kao's expertise in consumer products and chemical industries deepens the venture's global reach and impact.
The collaboration is a key strategic decision for Kao to accelerate its climate impact and meet its ambitious climate goals, which include reducing its carbon dioxide emissions to zero by 2040 and becoming a carbon-negative company by 2050. As responsibly sourced palm oil and its derivatives will continue to be a critical feedstock to Kao, the venture will support Kao in manufacturing more sustainable, biotechnology-driven ingredients for use in home and personal care products and supplying palm oil alternatives derivatives to its business customers, and to increase the transparency and traceability of its supply chain.
“To drive sustainable development and contribute toward the building of a resource-circulating society, Kao will continue to undertake responsible, sustainable palm oil procurement. In this regard, Geno's biotechnology has a vital role to play in the diversification of sustainable raw material procurement,” says Masahiro Katayose, Kao senior executive officer in charge of chemical business, in a press release. “Kao's investment in this venture will make possible the
provision of new eco-chemical solutions and represents an opportunity for Kao to play an even bigger role in helping consumers, customers, industry and society to realize decarbonization and make the shift to a resource-circulating economy."
Over the last year, Geno says it has executed deals to accelerate the global commercialization of sustainable materials, including a collaboration with Lululemon to bring plant-based materials into Lululemon's products and with Asahi Kasei for plant-based nylon-6-6. Geno has achieved production milestones with partners Aquafil for scaling plant-based nylon and with Covestro for plant-based HMD used in sustainable coatings, according to the company.
Read the press release at www.genomatica.com
