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Solazyme and Bunge Sign JDA Partnership for Oils

Solazyme and Bunge Sign JDA Partnership for Oils

May 11, 2011

Solazyme, Inc. has announced a two-year joint development agreement (JDA) with Bunge Limited to develop microbe-derived oils utilizing Brazilian sugar cane feedstock. The agreement builds on Bunge’s earlier equity investment in Solazyme, and the letter of intent signed by both firms in December 2010 that contemplates a manufacturing joint venture for the production of tailored oils at Bunge’s sugar cane mills in Brazil.

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.

In other Solazyme news, the company has announced the expansion of its board of directors with the addition of Ian Clark, current CEO of Genentech, and Ann Mather, former Chief Financial Officer of Pixar Studios, and current board member at companies including Google, Netflix and MGM Holdings, Inc.

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Thu May 12 2011 11:00:34 AM by Tomcatino 1391 views
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