Breakthrough in Cosmetic Formulation: CO₂-Derived Fermentation Lipids as a Sustainable Alternative to Palm Oil

With the continuous advancement of science, the greenhouse gas CO₂ can now actually be transformed into oil! Within the cosmetics industry, researchers are tirelessly searching for healthier and more environmentally friendly raw materials. The ability to convert greenhouse gases into sustainable cosmetic ingredients through carbon capture represents the ultimate synergy of science and sustainability. In 2026, scientists have once again expanded the boundaries of CO₂ as a sustainable resource.

Recently, the Swiss-based Mibelle Group, American biotech firm LanzaTech, and the Fraunhofer Institute for Interfacial Engineering and Biotechnology (Fraunhofer IGB) in Germany jointly announced the successful synthesis of a brand-new lipid substance using CO₂. This innovation is poised to become a sustainable alternative to palm oil.

Why are scientists so eager to find a replacement for palm oil? What are the advantages of this new CO₂-derived lipid? Let’s decode this revolutionary new material.

Part 01: The Environmental Dilemma of Palm Oil

Palm oil is the world’s most produced vegetable oil and a critical base ingredient in cosmetics.

According to data from Grand View Research, the global palm oil market exceeded $70 billion in 2024. Production is expected to continue rising through 2026, reflecting a state where supply struggles to meet demand.

Although the cosmetics industry consumes only about 2% of the world’s total palm oil, its derivatives are ubiquitous. For instance, palm oil is an essential precursor for the synthesis and manufacture of surfactants, fatty alcohols, and emulsifiers used in over 70% of cosmetic formulas.

However, the production of palm oil often comes at an environmental cost. Evidence shows that its output growth is closely linked to tropical rainforest destruction, peatland carbon emissions, and biodiversity loss. Research published in Nature Communications indicates that converting one hectare of tropical rainforest into a palm plantation releases approximately 174 tons of carbon. In contrast, carbon-captured ethanol produced via LanzaTech technology reduces greenhouse gas emissions by more than 70% compared to traditional fossil fuel processes (Source: LanzaTech 2024 Sustainability Report).

Can other plant oils replace it? Studies show that other oil crops can be even more damaging to land use. According to Our World in Data, palm oil accounts for 36% of global vegetable oil production while using only 10% of the world’s oil-crop land. This means that switching to other simple vegetable oils could require 4 to 10 times more land, potentially threatening global forest coverage.

Furthermore, international regulatory requirements are tightening. The implementation of the EU Deforestation Regulation (EUDR) has made “deforestation-free traceability” a mandatory compliance requirement, with potential fines reaching up to 4% of a company’s annual turnover.

Part 02: From CO₂ to “Fermentation Lipids”

The uniqueness of this project lies in its “waste-to-value” approach. In the long run, it helps reduce atmospheric carbon emissions. As production costs decrease in the future, carbon capture will become increasingly profitable.

The process consists of two steps:

Gas Fermentation: LanzaTech uses gas fermentation technology to convert captured CO₂ into alcohol.

Lipid Conversion: In a second fermentation stage led by Fraunhofer IGB, oleaginous yeasts are introduced to transform the alcohol into lipids. This process relies entirely on naturally occurring microorganisms, avoiding complex or environmentally harmful operations.

Preliminary analysis from Fraunhofer IGB shows that the ratio of palmitic acid (C16:0) to oleic acid (C18:1) in these fermentation lipids can be manually adjusted. Unlike natural palm oil, which is subject to climate-driven quality fluctuations, these lipids are more controllable, with composition variance kept within ±2% (Source: Fraunhofer IGB experimental data).

Physicochemical tests indicate that these “fermentation lipids” are nearly identical to palm oil in terms of heat resistance, shelf life, and high yield. Furthermore, lab data from Mibelle Biochemistry suggests these lipids may offer superior skincare benefits. They contain a higher proportion of unsaturated fatty acids, which are beneficial to humans. In skin barrier repair tests, the improvement in Transepidermal Water Loss (TEWL) was 15% higher than that of ordinary refined palm oil.

Part 03: Scaling Up – The Journey Has Just Begun

At the Fraunhofer Center for Chemical-Biotechnological Processes (CBP) in Leuna, Germany, the project has successfully completed kilogram-scale production verification. This is a critical milestone, signaling that the transition from laboratory achievement to industrial-scale production is becoming increasingly viable.

Key industry representatives attended the project launch, including Dr. Jennifer Holmgren (CEO of LanzaTech), Dr. Peter Müller (CEO of Mibelle Group), and Dr. Markus Wolperdinger (Director of Fraunhofer IGB).

“In combination with the scientific expertise of Fraunhofer IGB, we are setting new standards for the entire industry,” stated Peter Müller.

Susanne Heldmaier, Head of Research & Technical Innovation at Mibelle Group, added: “Following the success in the lab, we have entered the pilot phase. This is an essential step toward obtaining our first high-quality lipids, which will help us develop cosmetics that care for both the skin and the environment.”

While the breakthrough has garnered significant attention, experts remind us that commercialization at scale—reaching ton-level production—remains a challenge. Future hurdles include maintaining stable fermentation efficiency at scale, ensuring fatty acid profiles meet formulation needs, and optimizing downstream purification and energy costs.

Nevertheless, against a backdrop of supply chain volatility and growing market demand, “CO₂-as-a-raw-material” is poised to become a vital competitive edge for brands.

Part 04: Formula Applications and Product Cases

While the direct replacement of palm oil with “fermentation lipids” is in the pilot stage, other cosmetic ingredients developed using LanzaTech’s CarbonSmart™ technology are already on the market.

Case 1: Coty (Gucci) — Carbon-Captured Alcohol Perfume

Product: Gucci “Where My Heart Beats” (The Alchemist’s Garden collection).

Application: The world’s first globally distributed fragrance made with 100% carbon-captured ethanol as the base alcohol, proving the safety and commercial viability of CO₂-derived ingredients in fine fragrance.

Case 2: Beiersdorf (Nivea) — Carbon-Captured Moisturizer

Product: Nivea Men Climate Care Moisturizer.

Application: This product utilizes carbon-captured ethanol in its formula, representing a successful application within the same technological lineage.

Case 3: L’Oréal — Carbon-Captured Plastic Packaging

Application: In partnership with LanzaTech and TotalEnergies, L’Oréal developed Polyethylene (PE) cosmetic tubes made from industrial carbon emissions, extending carbon capture from the formula to the packaging.

Case 4: Mibelle Group — Potz & Migos Plus

Application: Mibelle has already integrated surfactants based on LanzaTech ethanol into its home care and personal care production lines in Switzerland.