California-based biotech company Checkerspot has announced the development of what it claims is the first ever high-oleic palm oil alternative produced entirely through microalgae fermentation.
As explained in a study published this month in the journal Fermentation, Checkerspot took the microalga Prototheca moriformis and used classical strain improvement techniques to enhance oil yield and composition. The resulting oil closely matches the fatty acid profile of conventional high-oleic palm oil, containing over 55% oleic acid and 32% palmitic acid. The technology does not involve genetic engineering.
The fermentation process reportedly demonstrated scalability from laboratory to industrial levels, achieving oil titers up to 145 grams per liter and oil content of approximately 70% of the dry cell weight. Consequently, the oil could be a viable alternative to high oleic palm oil across numerous applications, including food, nutrition, and personal care.
Checkerspot is now using the technology to scale the production of several other alternative oils that have been developed in its laboratory. Additionally, the company is already working alongside partners in the palm oil alternatives market to move towards commercial viability.

A scalable solution
Conventional palm oil production is associated with environmental issues like deforestation and greenhouse gas emissions, along with challenges such as high costs and labor intensity. By bypassing conventional agriculture, Checkerspot has developed a clean, consistent, and scalable alternative, while showcasing the potential of microalgae to generate tailored oil compositions.
Last year, Checkerspot entered a partnership with Sweden’s AAK to develop, scale, and commercially produce novel algae oils using precision fermentation. Two months previously, the company announced the development and large-scale production of a fat analog that mimics the human milk fat OPO.
“This milestone underscores our commitment to developing domestically produced, sustainable, high-performance alternatives to conventional oils,” said Scott Franklin, Chief Scientific Officer and co-founder of Checkerspot, regarding the new palm oil alternative. “By leveraging microalgae fermentation, we’ve created a scalable solution that addresses both environmental concerns and the supply chain vulnerabilities associated with the production of tropical fats such as high-oleic palm oil.”