In a breakthrough that could reshape global supply chains and accelerate aviation’s decarbonization, LanzaTech Global, Inc. , the carbon management leader, announced today the successful development of a sustainable palm oil substitute in partnership with the Mibelle Group and the Fraunhofer Institute for Interfacial Engineering and Biotechnology IGB.

The innovation marks a pivotal moment for two industries at once. For cosmetics, it offers a high-functionality replacement for palm oil, a commodity long plagued by links to deforestation, biodiversity loss, and carbon emissions. For energy, it unlocks a new pathway to sustainable aviation fuel (SAF) via Hydroprocessed Esters and Fatty Acids (HEFA), complementing LanzaTech’s already commercialized Alcohol-to-Jet (ATJ) process. The dual impact positions this technology at the heart of a broader shift toward circular carbon solutions.

Palm oil’s ubiquity stems from its versatility—its heat resistance, yield, and shelf stability make it indispensable across food, fuel, and beauty. But its dominance has come at a steep ecological cost. The LanzaTech-Fraunhofer-Mibelle innovation offers a way out. Using LanzaTech’s proprietary gas fermentation platform, waste CO₂ gases are first converted into alcohol. In a second fermentation step, non-GMO oil yeasts transform that alcohol into fats with the same key properties as palm oil. Successful trials at Fraunhofer IGB and application tests at Mibelle’s laboratories have validated the product’s performance, and scale-up efforts are now underway at Fraunhofer’s Leuna facility in Germany.

“This innovation is the result of our long-standing partnership with LanzaTech and a milestone for the cosmetics industry,” said Peter Müller, CEO of the Mibelle Group. “Together with the Fraunhofer Institute’s scientific excellence, we are not only setting new standards for sustainable sourcing but also strengthening supply chain resilience.”

For LanzaTech, the breakthrough underscores the adaptability of its platform. “The Mibelle Group, as the original innovator behind this idea, has been instrumental in bringing the right partners together,” said Jennifer Holmgren, CEO of LanzaTech. “What started with cosmetics now extends into aviation, creating a sustainable feedstock for HEFA SAF and offering a scalable alternative to deforestation-linked commodities. It’s proof that circular carbon can drive systemic change across industries.”

By extending its reach beyond ethanol-to-jet fuels into HEFA-compatible oils, LanzaTech is offering airlines and fuel producers a new decarbonization lever at a time when SAF demand is set to soar. The project illustrates how rethinking carbon as a resource—rather than waste—can unlock solutions that ripple across multiple sectors, from beauty aisles to airport runways.