Solazyme, Inc.(NASDAQ: SZYM), a renewable oil and bioproducts company, and Sasol Olefins & Surfactants GmbH (Sasol O&S), announced today that they have finalized commercial terms for the supply of an algal oil rich in erucic acid (C22:1) that is under development at Solazyme for production of downstream derivatives such as behenyl alcohol. Sasol O&S produces and sells C22 derivatives such as behenyl alcohol to serve a number of applications in markets that include the paper, water treatment, personal care, lubricants, oil and gas, and paints, inks, coatings and adhesives industries. In addition to the agreementon commercial supply terms, the companies also executed a letter of intent to investigate expanding to a broad collaboration, including joint manufacturing and marketing of multiple tailored oils.
“This agreement with Solazyme is testament to their tailored oil technology platform, and the fit for high performance, sustainable oils in our value chain,” said Fleetwood Grobler, Managing Director, Sasol Olefins & Surfactants. “We see a good potential to link Solazyme’s tailored oil platform with our synthetic and natural alcohols portfolio which will allow us to meet the growing demand that we see in a number of our key markets.”
The supply agreement covers multiple years with binding minimums and increasing supply quantities of tailored algal oil, with pricing to be competitive and indexed to Solazyme’s raw material costs. The companies anticipate initial commercial production of the high erucic oils currently under development at one or more Solazyme or Solazyme partner manufacturing facilities, including the Solazyme Bunge Renewable Oils facility in Orindiúva, São Paolo State, Brazil, as well as Solazyme’s manufacturing capacity in Clinton, Iowa, United States.
“Sasol O&S is a leader in the global surfactants industry, producing a diverse range of products, with excellence in both manufacturing and marketing. Combining Solazyme’s oil tailoring capability with Sasol’s industry leading capabilities can create a potential high-value business relationship across the surfactants value chain,” said Jean-Marc Rotsaert, COO, Solazyme.
Solazyme, Inc. (SZYM) is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value oils and innovative microalgal food ingredients. Headquartered in South San Francisco, 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) fuels and chemicals, (2) nutrition and (3) skin and personal care.
Solazyme®, the Solazyme logo and other trademarks or service names are the trademarks of Solazyme, Inc.
About Sasol Olefins & Surfactants, GmbH:
Sasol Olefins & Surfactants (O&S) belongs to Sasol Limited, an integrated energy and chemical company with about 34.000 employees worldwide, based in Johannesburg South Africa. Sasol O&S is an international chemical company that manufactures and markets a broad range of organic and inorganic products, such as C6-C22 alcohols, linear alkyl benzene, surfactants and surfactants intermediates, as well as inorganic specialty chemicals such as alumina (hydroxides and oxides), silica-alumina and hydrotalcites. The products are used in detergents, cleaners, paint and coatings, personal care products as well as in catalysts, high performance abrasives and polymer additives. Sasol O&S has a large global footprint with its presence in 15 countries around the world. The company employs about 3,000 people and runs 10 production sites in six countries, Germany, Italy, Slovakia, USA, South Africa and China.
Source: Solazyme, press release, 2013-08-07.