Solazyme, Bunge sign algal oil development deal

In Brazil and California, Solazyme and Bunge announced a two-year joint development agreement to develop algal oils utilizing Brazilian sugar cane feedstock. 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.