Solazyme and AkzoNobel expand partnership
The expansion provides for funded development, as well as agreed key terms for a multi-year supply agreement targeting annual supply of up to 10000 MT of renewable tailored algal oils, pending successful product development.
Solazyme, a renewable oil and bioproducts company, and AkzoNobel, a major producer of specialty chemicals, have expanded their previous joint development agreement. The parties expect that the algal oil under the joint development agreement would be able to replace both petroleum and palm oil-derived chemicals. The target product is designed to have improved functional and environmental performance, as well as a lower overall cost to AkzoNobel.
"The product development effort not only advances our technology platform into valuable new chemistries, but it also outlines the critical aspects of a long-term supply agreement, said Jonathan Wolfson, Chief Executive Officer, Solazyme.
"We identified Solazyme to complement our own capabilities, and have now agreed on a joint target that should deliver a triple win: for AkzoNobel, for Solazyme as well as yielding more sustainable products for our customers and the world as part of our Planet Possible approach to sustainability, said Peter Nieuwenhuizen, Director Innovation and Partnerships, AkzoNobel. "
Product development is expected to commence immediately, and the parties anticipate entering into a definitive supply agreement as they near completion of product development.