Solazyme and Sasol Olefins & Surfactants Finalize Commercial Terms for a Multi-Year Supply of High E
Solazyme and Sasol Olefins & Surfactants Finalize Commercial Terms for a Multi-Year Supply of High Erucic Algal Oil
Sasol Olefins & Surfactants to utilize this renewable oil for fatty alcohol and other chemicals production to service multiple markets
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Solazyme, Inc. (NAS: 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.
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 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.
This press release contains certain forward-looking statements about Solazyme, including statements that involve risks and uncertainties concerning: the expansion into a broad collaboration and entry into definitive agreements; the attributes of the collaboration; the timing of development and supply; the potential uses of the oils; the ability to launch successful products using Solazyme's oils; market demand for such products; and Solazyme's ability to maintain its relationships with its partners. When used in this press release, the words "will", "expects", "intends" and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: Solazyme's limited operating history; its limited history in commercializing products; implementation risk in deploying new technologies; market acceptance of its products; its ability to manage costs and expenses; its ability to enter into and maintain strategic collaborations; and its access, on favorable terms, to any required financing. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of the information in this press release.
Genet Garamendi, 650-780-4777
VP of Communications
Sasol Olefins & Surfactants, GmbH
Manager O&S Global Communications and Public Affairs
KEYWORDS: United States North America California South Africa Africa
The article Solazyme and Sasol Olefins & Surfactants Finalize Commercial Terms for a Multi-Year Supply of High Erucic Algal Oil originally appeared on Fool.com.
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