Solazyme And Sasol Olefins & Surfactants Finalize Commercial Terms For A Multi-Year Supply Of High Erucic Algal Oil
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...
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 agreement on 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.