Solazyme, Inc., a leading renewable oils and bioproducts company, today announced a two-year joint development agreement (JDA) with Bunge Limited (NYSE:BG) to develop microbe-derived oils utilizing Brazilian sugar cane feedstock. The agreement builds on Bunge’s earlier equity investment in Solazyme, and the letter of intent signed by both firms in December 2010 that contemplates a manufacturing joint venture for the production of tailored oils at Bunge’s sugar cane mills in Brazil.
Under the terms of the agreement, Solazyme will leverage its algal fermentation technology in combination with Bunge’s oil processing and milling capabilities to cost-effectively produce targeted triglyceride oils. Development will take place at Bunge’s facility in Moema, Brazil, and at Solazyme’s laboratories in South San Francisco and Campinas, Brazil.
To further align the incentives of both parties, the two companies also entered into a Warrant Agreement. This agreement issues a warrant to Bunge for shares of Solazyme that vests upon the successful completion of key milestones, ultimately targeting the construction of a commercial facility with 100,000 metric tons of output oil coming online in 2013.
Solazyme, Inc. is a renewable oil and bioproducts company and a leader in industrial biotechnology. Founded in 2003 and headquartered in South San Francisco, Solazyme’s technology allows microbes to produce oil and biomaterials in standard fermentation facilities quickly, efficiently and at large scale. These oils and biomaterials are tailored not only for biofuel production, but also as replacements for fossil petroleum, plant oils and animal fats in a diverse range of products running from clean fuels and chemicals to cosmetics and foods. Solazyme’s oils and fuels provide compelling solutions to increasingly complex issues of fuel scarcity, energy security and environmental impact while fitting into the pre-existing multi-trillion dollar fuel infrastructure. Solazyme’s investors among others include Braemar Energy Ventures, Harris & Harris Group, Lightspeed VenturePartners, The Roda Group, VantagePoint Venture Partners, and Zygote Ventures.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company with approximately 32,000 employees in more than 30 countries. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat and corn to make ingredients used by food companies; and sells fertilizer in North and South America. Founded in 1818, the company is headquartered in White Plains, New York.
Source: Business Wire, 2011-05-06.