Solazyme
Encyclopedia
Solazyme Inc. is a publicly held United States
alternative energy
company specializing in the production of algal fuel for use in ground and air transportation. Solazyme uses proprietary technology to transform a range of low-cost plant-based sugars into high-value oils. Their renewable products are meant to replace or enhance oils derived from petroleum, plants and animal fats.
, started the company in Wolfson's garage. About their partnership, Dillon said: "Neither of us wanted to go work for some giant organization where we were a tiny cog in a huge wheel. We wanted to make a difference and create something that had never existed before.”
In 2004 and 2005, Solazyme began development of an algal molecular biology platform, and identified and initiated a platform for microalgae-based oil production. The company then expanded focus to skin and personal care products.
Solazyme continued development of the algal molecular biology platform in 2006. Key microalgae strains for oil production into fuels and chemicals were identified. Solazyme demonstrated ability to produce and extract oil from microalgae, and invented alguronic acid which received positive in-vitro skin care results. The company expanded focus into nutrition.
In September 2007, Solazyme received a $2 million grant from the National Institute of Standards and Technology
, signed a joint development agreement with Chevron
through its division Chevron Technology Ventures, began operating in commercially-sized standard industrial fermentation equipment (75,000-liter scale), worked with a third party refiner to demonstrate the compatibility of the oil with standard refining equipment, and produced over 400 liters of microalgae-based oils.
In January 2008, the company attracted attention at the Sundance Film Festival
in Park City, Utah
, by presenting a Mercedes Benz C320 fueled with its Soladiesel brand of algal fuel. The algal fuel-powered car was also used to call attention to the documentary film Fields of Fuel, which was playing at the festival and which featured coverage of Solazyme.
The company announced a partnership with Chevron
Technology Ventures in January of 2008 to explore the commercialization of algal fuel. In September 2008, the company stated it produced the world's first jet fuel derived from an algal source. Harrison Dillon, the company’s president and co-founder, announced the fuel passed eleven tests conducted at a fuel analysis laboratory that certified its worthiness for aviation usage. "This is not like conventional biodiesel, where you can take french fry grease from McDonald's
and turn it into oil in your garage," said Dillon during a press conference. "Planes will fall out of the sky if you don't have a high-quality fuel that meets strict standards."
In 2009, Solazyme was awarded approximately $22 million from the US Department of Energy for the construction of an integrated biorefinery project and two contracts from the US Department of Defense for delivery to the US Navy of both microalgae-based marine (renewable F-76) diesel fuel.
In 2010, Solazyme entered into a 50/50 joint venture with Roquette
, to develop, produce and market nutrition products worldwide. The company also saw the first launch of consumer nutrition products containing Golden Chlorella on store shelves in Whole Foods
and General Nutrition Centers
, executed a distribution agreement with Sephora
International for the Algenist skin care product brand , entered into a joint venture agreement with Therabotanics, an affiliate of a leading direct response marketing company, for the sale and distribution of another microalgae-based skin care line to be launched in 2012, and produced over 400,000 liters (364 metric tons) of oil.
To satisfy the testing and certification requirements of the US Navy, Solazyme partnered with Honeywell
UOP to refine a portion of this oil into approximately 200,000 liters (182 metric tons) of military specification marine diesel and jet fuel. In 2009, it sold 20,000 gallons of algae fuel to the US Navy and in 2010 it received another purchase for 150,000 gallons. On October 22, 2010, the US Navy conducted a full power demonstration of Solazyme’s algae-based fuel on a Navy Riverine Command Boat at the Naval Base in Norfolk, Virginia. The test showcased the compatibility of a 50/50 blend of algae-based fuel with NATO F-76 fuel. Rear Admiral Phil Cullom, Director of the Fleet Readiness Division, spoke at the demonstration, saying: "If you have alternatives other than petroleum, then you are never beholden to just one type of fuel. And those additional alternatives give you flexibility...it's mission accomplishment because you have that additional capability." The use of alternative fuels supports Secretary Mabus' plan to reduce energy use aboard Navy ships.
In the second quarter of 2011, the company announced that it had produced over 283,000 liters of military-spec diesel (HRF-76) for US Navy contract. The initial fuel production for phase 1 of a 550,000 liter contract was completed ahead of schedule. Additionally, the US Navy has indicated its intent to exercise its phase 2 option, which would be produced through the first half of 2012. Sephora Canada and The Shopping Channel
agreed to distribute Solazyme’s anti-aging skincare line, Algenist, throughout Canada. This increases the brand’s physical retail presence by 26 stores. The launch into Canada accompanies Algenist’s debut in the United Kingdom, which includes distribution in all 60 Space NK locations throughout the country. Solazyme will shift the location of its integrated biorefinery to its Peoria facility. Solazyme began the build-out of this recently acquired facility, adding fermentation capacity and performing upgrades after completion of the acquisition in May 2011. The fermentation portion of this facility is expected to be operational in the second half of 2011, with end-to-end manufacturing expected in the first half of 2012.
On August 8, 2011, Solazyme and Bunge Limited
announced a joint venture to develop renewable chemicals in Brazil using Solazyme's algae-based sugar-to-oil technology.
Bunge already owns a sugar cane mill in Brazil and both companies will contribute to the retrofit of that facility to produce renewable chemicals.
Bunge is one of the worlds' largest vegetable oil distributors and also a sugarcane processor in Brazil. It invested in Solazyme in 2010.
On November 16, 2011, the US Navy launched its largest alternative fuel test to date, pumping 20,000 gallons of Solazyme's algae-based fuel into a destroyer ship that will embark on a 20-hour trip along the California coast. The Paul H. Foster ship’s trip from San Diego to Port Hueneme is a part of the Navy’s plan to unveil next year a small carrier strike group of small ships, destroyers, cruisers, aircraft, submarines and a carrier run on alternative fuels, including nuclear power. Naval officials will use data from an earlier trip of the same route to compare how the ship performs when running on Solazyme's biofuel.
. The company planned to raise $160 million by offering 10 million shares at a price range of $15 to $17 and ended up selling nearly 11 million shares for $18 each, and climbed 15% to 20.71 in its first day of trading.
Investment banking and securities firm Goldman Sachs
reported in July 2011 that with the commercialization of new oil products, Solazyme stock had become less risky. The bank initiated coverage with a top rating and $31 target. In a note to clients, it said Solazyme (SZYM) stands to boost sales and stabilize its business now that it's partnered with major agribusinesses like Bunge Limited
.
Pavel Molchanov of Raymond James recently reiterated an Outperform rating for Solazyme. The stock has since fallen 57% from a high of $27.30 on July 12, 2011, to a low of $11.69 on September 6, 2011.
By feeding plant sugars to an oil-producing microalgae in dark fermentation tanks, the technology utilizes "indirect photosynthesis", in contrast to common open-pond and photo bioreactor approaches. The platform is feedstock flexible and can utilize a wide variety of renewable plant-based sugars, such as sugarcane-based sucrose
, corn-based dextrose, and sugar from other sustainable biomass sources including cellulosics. Solazyme's technology platform allows them to also produce and sell bioproducts which are made from the protein, fiber and other compounds produced by microalgae.
In the early years of Solazyme, the company's scientists discovered an extract from algae that demonstrated an ability to increase cell regeneration and to reduce inflammation, while protecting from UV light damage. The company created the name "alguronic acid" for the new discovery.
and General Nutrition Centers
.
In March 2011, Solazyme launched the Algenist brand for the luxury skin care market through marketing and distribution arrangements with Sephora
and QVC
. Distribution of the Algenist line of skin care products is expected to reach 850 retail stores worldwide by year end. Retailing for $65 to $95, Algenist moisturizers, serum and eye balm are already available in Sephora stores and at Sephora.com.
In addition, Solazyme is currently engaged in development activities with Chevron
, Dow Chemical, Ecopetrol
, Qantas
and Unilever
. In conjunction with these development activities, Solazyme entered into non-binding letters of intent with Dow and Qantas for the purchase of Solazyme's products. Subject to certain conditions, including entry into a supply agreement, Dow will purchase up to 20 million gallons (76 million liters) of Solazyme's oils in 2013 rising to up to 60 million gallons (227 million liters) by 2015 and Qantas will purchase a minimum of 200 to 400 million liters of the jet fuel per year.
On July 1, 2011, ASTM International
gave approval for carriers to mix fuel made from organic waste and nonfood plants with kerosene, which is conventionally used to power planes. Chief Executive Officer of Solazyme Jonathan Wolfson said that by 2013 or 2014 his company will start producing "large commercial quantities" of its clean oils that can be refined into jet fuel.
Analyst Pavel Molchanov of Raymond James wrote in July 2011 that they are bullish on Solazyme’s roadmap to commercialization.
On August 8, 2011, Solazyme and Bunge Limited
announced that they have entered into a framework agreement for the formation of a joint venture entity ("JV") focused on the production of triglyceride oils for chemical applications. The JV anticipates building a 100,000 MT renewable oil production facility located at a Bunge owned sugar cane mill in Brazil. Engineering for the plant will begin immediately and will be funded by both parties. Upon successful completion of site-specific engineering designs and execution of final JV agreements, construction on the facility will commence, with a targeted start-up during the 2013 cane harvest.
On November 7, 2011, United
flew the world's first commercial aviation flight on a microbially-derived biofuel using Solajet™, Solazyme's algae-derived renewable jet fuel. United also signed a letter of intent with Solazyme to purchase up to 20 million gallons per year of renewable jet fuel starting in 2014. The product is a mix of 40 percent algae-based and 60 percent petroleum-based fuel. Solazyme officials said it sold the fuel to United at the same cost as regular jet fuel.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
alternative energy
Alternative energy
Alternative energy is an umbrella term that refers to any source of usable energy intended to replace fuel sources without the undesired consequences of the replaced fuels....
company specializing in the production of algal fuel for use in ground and air transportation. Solazyme uses proprietary technology to transform a range of low-cost plant-based sugars into high-value oils. Their renewable products are meant to replace or enhance oils derived from petroleum, plants and animal fats.
Company history
Solazyme, Inc., was founded on March 31, 2003, with the mission of utilizing microalgae to create a renewable source of energy and transportation fuels. Founders Jonathan Wolfson and Harrison Dillon, who met while attending Emory UniversityEmory University
Emory University is a private research university in metropolitan Atlanta, located in the Druid Hills section of unincorporated DeKalb County, Georgia, United States. The university was founded as Emory College in 1836 in Oxford, Georgia by a small group of Methodists and was named in honor of...
, started the company in Wolfson's garage. About their partnership, Dillon said: "Neither of us wanted to go work for some giant organization where we were a tiny cog in a huge wheel. We wanted to make a difference and create something that had never existed before.”
In 2004 and 2005, Solazyme began development of an algal molecular biology platform, and identified and initiated a platform for microalgae-based oil production. The company then expanded focus to skin and personal care products.
Solazyme continued development of the algal molecular biology platform in 2006. Key microalgae strains for oil production into fuels and chemicals were identified. Solazyme demonstrated ability to produce and extract oil from microalgae, and invented alguronic acid which received positive in-vitro skin care results. The company expanded focus into nutrition.
In September 2007, Solazyme received a $2 million grant from the National Institute of Standards and Technology
National Institute of Standards and Technology
The National Institute of Standards and Technology , known between 1901 and 1988 as the National Bureau of Standards , is a measurement standards laboratory, otherwise known as a National Metrological Institute , which is a non-regulatory agency of the United States Department of Commerce...
, signed a joint development agreement with Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
through its division Chevron Technology Ventures, began operating in commercially-sized standard industrial fermentation equipment (75,000-liter scale), worked with a third party refiner to demonstrate the compatibility of the oil with standard refining equipment, and produced over 400 liters of microalgae-based oils.
In January 2008, the company attracted attention at the Sundance Film Festival
Sundance Film Festival
The Sundance Film Festival is a film festival that takes place annually in Utah, in the United States. It is the largest independent cinema festival in the United States. Held in January in Park City, Salt Lake City, and Ogden, as well as at the Sundance Resort, the festival is a showcase for new...
in Park City, Utah
Park City, Utah
Park City is a town in Summit and Wasatch counties in the U.S. state of Utah. It is considered to be part of the Wasatch Back. The city is southeast of downtown Salt Lake City and from Salt Lake City's east edge of Sugar House along Interstate 80. The population was 7,558 at the 2010 census...
, by presenting a Mercedes Benz C320 fueled with its Soladiesel brand of algal fuel. The algal fuel-powered car was also used to call attention to the documentary film Fields of Fuel, which was playing at the festival and which featured coverage of Solazyme.
The company announced a partnership with Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
Technology Ventures in January of 2008 to explore the commercialization of algal fuel. In September 2008, the company stated it produced the world's first jet fuel derived from an algal source. Harrison Dillon, the company’s president and co-founder, announced the fuel passed eleven tests conducted at a fuel analysis laboratory that certified its worthiness for aviation usage. "This is not like conventional biodiesel, where you can take french fry grease from McDonald's
McDonald's
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily in 119 countries. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by the eponymous Richard and Maurice McDonald; in 1948...
and turn it into oil in your garage," said Dillon during a press conference. "Planes will fall out of the sky if you don't have a high-quality fuel that meets strict standards."
In 2009, Solazyme was awarded approximately $22 million from the US Department of Energy for the construction of an integrated biorefinery project and two contracts from the US Department of Defense for delivery to the US Navy of both microalgae-based marine (renewable F-76) diesel fuel.
In 2010, Solazyme entered into a 50/50 joint venture with Roquette
Roquette
-Places:*De la Roquette Islands, Nunavut, Canada*La Roquette, a commune in the Eure département, France*La Roquette , a quarter of Paris, France*La Roquette-sur-Var, a commune in the Alpes-Maritimes département, France...
, to develop, produce and market nutrition products worldwide. The company also saw the first launch of consumer nutrition products containing Golden Chlorella on store shelves in Whole Foods
Whole foods
Whole foods are foods that are unprocessed and unrefined, or processed and refined as little as possible, before being consumed. Whole foods typically do not contain added ingredients, such as salt, carbohydrates, or fat. Examples of whole foods include unpolished grains, beans, fruits, vegetables...
and General Nutrition Centers
General Nutrition Centers
General Nutrition Centers is a Pittsburgh, Pennsylvania-based American commercial enterprise focused on the retail sale of health and nutrition related products, including vitamins, supplements, minerals, herbs, sports nutrition, diet & energy products.-History:In 1935, David Shakarian opened a...
, executed a distribution agreement with Sephora
Sephora
Sephora is a chain of cosmetics stores founded in France in 1970 and acquired by Paris-based conglomerate LVMH in 1997. The Sephora chain includes more than 750 stores in 17 countries...
International for the Algenist skin care product brand , entered into a joint venture agreement with Therabotanics, an affiliate of a leading direct response marketing company, for the sale and distribution of another microalgae-based skin care line to be launched in 2012, and produced over 400,000 liters (364 metric tons) of oil.
To satisfy the testing and certification requirements of the US Navy, Solazyme partnered with Honeywell
Honeywell
Honeywell International, Inc. is a major conglomerate company that produces a variety of consumer products, engineering services, and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments....
UOP to refine a portion of this oil into approximately 200,000 liters (182 metric tons) of military specification marine diesel and jet fuel. In 2009, it sold 20,000 gallons of algae fuel to the US Navy and in 2010 it received another purchase for 150,000 gallons. On October 22, 2010, the US Navy conducted a full power demonstration of Solazyme’s algae-based fuel on a Navy Riverine Command Boat at the Naval Base in Norfolk, Virginia. The test showcased the compatibility of a 50/50 blend of algae-based fuel with NATO F-76 fuel. Rear Admiral Phil Cullom, Director of the Fleet Readiness Division, spoke at the demonstration, saying: "If you have alternatives other than petroleum, then you are never beholden to just one type of fuel. And those additional alternatives give you flexibility...it's mission accomplishment because you have that additional capability." The use of alternative fuels supports Secretary Mabus' plan to reduce energy use aboard Navy ships.
In the second quarter of 2011, the company announced that it had produced over 283,000 liters of military-spec diesel (HRF-76) for US Navy contract. The initial fuel production for phase 1 of a 550,000 liter contract was completed ahead of schedule. Additionally, the US Navy has indicated its intent to exercise its phase 2 option, which would be produced through the first half of 2012. Sephora Canada and The Shopping Channel
The Shopping Channel
The Shopping Channel is a Canadian English language cable television home shopping channel. The Shopping Channel is a division of Rogers Media. The channel is headquartered in Mississauga, Ontario. It showcases various products throughout the day of which viewers can purchase either by telephone or...
agreed to distribute Solazyme’s anti-aging skincare line, Algenist, throughout Canada. This increases the brand’s physical retail presence by 26 stores. The launch into Canada accompanies Algenist’s debut in the United Kingdom, which includes distribution in all 60 Space NK locations throughout the country. Solazyme will shift the location of its integrated biorefinery to its Peoria facility. Solazyme began the build-out of this recently acquired facility, adding fermentation capacity and performing upgrades after completion of the acquisition in May 2011. The fermentation portion of this facility is expected to be operational in the second half of 2011, with end-to-end manufacturing expected in the first half of 2012.
On August 8, 2011, Solazyme and Bunge Limited
Bunge Limited
Bunge Limited is a Bermudan food conglomerate with its headquarters in White Plains, New York. As well as being a leading global soybean exporter it is also involved in food processing, grain trading, and fertilizer...
announced a joint venture to develop renewable chemicals in Brazil using Solazyme's algae-based sugar-to-oil technology.
Bunge already owns a sugar cane mill in Brazil and both companies will contribute to the retrofit of that facility to produce renewable chemicals.
Bunge is one of the worlds' largest vegetable oil distributors and also a sugarcane processor in Brazil. It invested in Solazyme in 2010.
On November 16, 2011, the US Navy launched its largest alternative fuel test to date, pumping 20,000 gallons of Solazyme's algae-based fuel into a destroyer ship that will embark on a 20-hour trip along the California coast. The Paul H. Foster ship’s trip from San Diego to Port Hueneme is a part of the Navy’s plan to unveil next year a small carrier strike group of small ships, destroyers, cruisers, aircraft, submarines and a carrier run on alternative fuels, including nuclear power. Naval officials will use data from an earlier trip of the same route to compare how the ship performs when running on Solazyme's biofuel.
Initial public offering
In May 2011, Solazyme set terms for its initial public offeringInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
. The company planned to raise $160 million by offering 10 million shares at a price range of $15 to $17 and ended up selling nearly 11 million shares for $18 each, and climbed 15% to 20.71 in its first day of trading.
Investment banking and securities firm Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
reported in July 2011 that with the commercialization of new oil products, Solazyme stock had become less risky. The bank initiated coverage with a top rating and $31 target. In a note to clients, it said Solazyme (SZYM) stands to boost sales and stabilize its business now that it's partnered with major agribusinesses like Bunge Limited
Bunge Limited
Bunge Limited is a Bermudan food conglomerate with its headquarters in White Plains, New York. As well as being a leading global soybean exporter it is also involved in food processing, grain trading, and fertilizer...
.
Pavel Molchanov of Raymond James recently reiterated an Outperform rating for Solazyme. The stock has since fallen 57% from a high of $27.30 on July 12, 2011, to a low of $11.69 on September 6, 2011.
Technology
Solazyme grows microalgae in the dark, inside huge stainless-steel containers. The company's researchers feed algae sugar, which the organisms then convert into various types of oil. The oil can be extracted and further processed to make a range of fuels, including diesel and jet fuel, as well as other products.By feeding plant sugars to an oil-producing microalgae in dark fermentation tanks, the technology utilizes "indirect photosynthesis", in contrast to common open-pond and photo bioreactor approaches. The platform is feedstock flexible and can utilize a wide variety of renewable plant-based sugars, such as sugarcane-based sucrose
Sucrose
Sucrose is the organic compound commonly known as table sugar and sometimes called saccharose. A white, odorless, crystalline powder with a sweet taste, it is best known for its role in human nutrition. The molecule is a disaccharide composed of glucose and fructose with the molecular formula...
, corn-based dextrose, and sugar from other sustainable biomass sources including cellulosics. Solazyme's technology platform allows them to also produce and sell bioproducts which are made from the protein, fiber and other compounds produced by microalgae.
In the early years of Solazyme, the company's scientists discovered an extract from algae that demonstrated an ability to increase cell regeneration and to reduce inflammation, while protecting from UV light damage. The company created the name "alguronic acid" for the new discovery.
Current commercial activity
In 2010, Solazyme launched their first products, the Golden Chlorella line of dietary supplements, as a market development initiative, with current sales of products incorporating Golden Chlorella at retailers including Whole FoodsWhole foods
Whole foods are foods that are unprocessed and unrefined, or processed and refined as little as possible, before being consumed. Whole foods typically do not contain added ingredients, such as salt, carbohydrates, or fat. Examples of whole foods include unpolished grains, beans, fruits, vegetables...
and General Nutrition Centers
General Nutrition Centers
General Nutrition Centers is a Pittsburgh, Pennsylvania-based American commercial enterprise focused on the retail sale of health and nutrition related products, including vitamins, supplements, minerals, herbs, sports nutrition, diet & energy products.-History:In 1935, David Shakarian opened a...
.
In March 2011, Solazyme launched the Algenist brand for the luxury skin care market through marketing and distribution arrangements with Sephora
Sephora
Sephora is a chain of cosmetics stores founded in France in 1970 and acquired by Paris-based conglomerate LVMH in 1997. The Sephora chain includes more than 750 stores in 17 countries...
and QVC
QVC
QVC is a multinational corporation specializing in televised home shopping. Founded in 1986 by Joseph Segel in West Goshen Township, Pennsylvania, United States, QVC broadcasts in five countries as QVC US, QVC UK, QVC Germany, QVC Japan and – QVC Italy to 200 million households...
. Distribution of the Algenist line of skin care products is expected to reach 850 retail stores worldwide by year end. Retailing for $65 to $95, Algenist moisturizers, serum and eye balm are already available in Sephora stores and at Sephora.com.
In addition, Solazyme is currently engaged in development activities with Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
, Dow Chemical, Ecopetrol
Ecopetrol
Ecopetrol , formerly known as Empresa Colombiana de Petróleos S.A. is the largest and primary petroleum company in Colombia. Because of its size, Ecopetrol is a Fortune Global 500 company ranked 445, it belongs to the group of the 25 largest petroleum companies in the world, and it is one of the...
, Qantas
Qantas
Qantas Airways Limited is the flag carrier of Australia. The name was originally "QANTAS", an initialism for "Queensland and Northern Territory Aerial Services". Nicknamed "The Flying Kangaroo", the airline is based in Sydney, with its main hub at Sydney Airport...
and Unilever
Unilever
Unilever is a British-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products....
. In conjunction with these development activities, Solazyme entered into non-binding letters of intent with Dow and Qantas for the purchase of Solazyme's products. Subject to certain conditions, including entry into a supply agreement, Dow will purchase up to 20 million gallons (76 million liters) of Solazyme's oils in 2013 rising to up to 60 million gallons (227 million liters) by 2015 and Qantas will purchase a minimum of 200 to 400 million liters of the jet fuel per year.
On July 1, 2011, ASTM International
ASTM International
ASTM International, known until 2001 as the American Society for Testing and Materials , is an international standards organization that develops and publishes voluntary consensus technical standards for a wide range of materials, products, systems, and services...
gave approval for carriers to mix fuel made from organic waste and nonfood plants with kerosene, which is conventionally used to power planes. Chief Executive Officer of Solazyme Jonathan Wolfson said that by 2013 or 2014 his company will start producing "large commercial quantities" of its clean oils that can be refined into jet fuel.
Analyst Pavel Molchanov of Raymond James wrote in July 2011 that they are bullish on Solazyme’s roadmap to commercialization.
On August 8, 2011, Solazyme and Bunge Limited
Bunge Limited
Bunge Limited is a Bermudan food conglomerate with its headquarters in White Plains, New York. As well as being a leading global soybean exporter it is also involved in food processing, grain trading, and fertilizer...
announced that they have entered into a framework agreement for the formation of a joint venture entity ("JV") focused on the production of triglyceride oils for chemical applications. The JV anticipates building a 100,000 MT renewable oil production facility located at a Bunge owned sugar cane mill in Brazil. Engineering for the plant will begin immediately and will be funded by both parties. Upon successful completion of site-specific engineering designs and execution of final JV agreements, construction on the facility will commence, with a targeted start-up during the 2013 cane harvest.
On November 7, 2011, United
United
-Travel:* United Airlines* United Automobile Services, a bus operator in England, now merged with the Arriva Group* United Bus, a bus manufacturing group-Sports:...
flew the world's first commercial aviation flight on a microbially-derived biofuel using Solajet™, Solazyme's algae-derived renewable jet fuel. United also signed a letter of intent with Solazyme to purchase up to 20 million gallons per year of renewable jet fuel starting in 2014. The product is a mix of 40 percent algae-based and 60 percent petroleum-based fuel. Solazyme officials said it sold the fuel to United at the same cost as regular jet fuel.