Solazyme, Inc. (NASDAQ: SZYM) (“Solazyme”), a renewable oil and bioproducts company, announced today that Solazyme Bunge Renewable Oils, its joint venture with Bunge Global Innovation LLC, a wholly-owned subsidiary of Bunge Limited (NYSE: BG), has received approval for project financing in the form of a loan from the Brazilian Development Bank (BNDES) of R$245,699,000 (or approximately USD$120 million based on the current exchange rate). The BNDES funding will support the joint venture’s first commercial-scale renewable oil production facility in Brazil, which is being constructed adjacent to Bunge’s Moema sugarcane mill in São Paulo state. The 8-year loan will have an average interest rate of approximately 4% per annum.
Rogerio Manso, Chief Commercialization Officer, Solazyme, stated, “Solazyme Bunge Renewable Oils is committed to commercializing innovative tailored oil technology in Brazil. This financing from BNDES highlights the significant value that the joint venture can bring to the Brazilian economy.”
The project was selected by the PAISS program, a BNDES/FINEP joint plan for stimulating industrial technological innovation in the sugar-based energy and chemical sectors. The funding is mostly provided through the BNDES PSI program (BNDES Investment Support Program) created for stimulating the production, acquisition and export of capital goods and technological innovation. Solazyme Bunge Renewable Oils broke ground in June 2012 and is scheduled to be operational in the fourth quarter of 2013. It will service the renewable chemical and fuel industries within the Brazilian marketplace and will initially target 100,000 metric tons per year of renewable oil production. In November 2012, Solazyme and Bunge announced in a framework agreement that they intend to expand production capacity from 100,000 metric tons to 300,000 metric tons globally by 2016, and that the portfolio of oils will broaden to include a range of healthy and nutritious edible food oils for sale in Brazil.
About Solazyme, Inc.
Solazyme, Inc. (NASDAQ: SZYM) is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value oils. 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.