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Solazyme and Unilever sign commercial supply agreement for tailored algal oil

Solazyme, Inc., a renewable oil and bioproducts company, and Unilever have executed a commercial supply agreement for the first partnered Solazyme Tailored Algal Oil. The companies have been collaborating for five years on multiple projects with increasing levels of success culminating in this initial supply agreement. The agreement covers the first of Solazyme and Unilever’s jointly developed tailored oils with an initial supply of at least 10,000 metric tons (MT).

The oil will be produced at the Solazyme Bunge Renewable Oils facility, a joint venture of Solazyme and Bunge located at Bunge’s Moema sugar mill in Brazil. Supply delivery is planned to begin in early 2014 and Unilever expects to purchase the full volume within twelve to eighteen months. Customary product validation trials are scheduled to take place in Q4 2013.

Solazyme, Inc. transforms a range of low-cost plant-based sugars into high-value oils and food ingredients via its algae. Solazyme’s renewable products can replace or enhance oils derived from the world’s three existing sources: petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) chemicals and fuels; (2) nutrition; and (3) skin and personal care.

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