At a Glance

  • Savor, a startup producing butter from carbon, has signed a two-year agreement with baking ingredients supplier AAK,to jointly develop sources of saturated fats that do not rely on traditional agriculture.。
  • The collaboration, which also includes an investment in Savor by AAK, will expand solutions for the baking and dairy alternatives markets.
  • Compared with traditional fats, these novel fats could require up to a thousand times less land use and reduce carbon emissions by up to 98%.

In-Depth Analysis

The partnership between Savor and AAK focuses on dairy alternatives and baking, two segments with growing demand for functional ingredients amid supply chain volatility. The companies' fat alternatives can offer brands sustainable options while providing more stable supply and reliable pricing.

"Food and consumer goods manufacturers are under pressure on two fronts simultaneously: supply chain stability and the need to reduce the environmental footprint of key ingredients," said Chiara Cecchini, Senior Vice President of Commercialization at Savor, in a statement. "This collaboration brings a compelling answer to both, right to the customers who need it most."

Founded in 2022, Savor extracts carbon dioxide from the air and hydrogen from water to produce the same fat molecules found in milk, cheese, and vegetable oils. The company is backed by Breakthrough Energy Ventures, the investment fund of Bill Gates, and emphasizes that its alternative fats could be a solution for palm oil—which is widely used in packaged foods but is also a major driver of deforestation.

In March of last year, Savor announced the commercial launch of its carbon-based butter, for use in baking and food service. As part of the announcement, the company opened a 25,000-square-foot pilot production facility in Batavia, Illinois.

Savor's technology platform can be deployed anywhere, requiring no land, fertilizer, or water. Kim Olofsson, Global Head of R&D at AAK, said in the statement that Savor's fats can be "designed together with AAK's plant-based oils and fats to achieve a wide range of functionalities and solutions."

"The unique solutions unlocked by AAK's strategic collaboration with Savor address market needs across the food industry," added Ronald van der Knaap, Global Head of Dairy, Early Nutrition, and Savory at AAK. "Beyond supply chain resilience and sustainability, we will create applications with excellent taste and texture for customers in two very important segments, fully meeting requirements and enhancing the overall consumer experience."