Solazyme, Inc, a pioneer in renewable oils and bioproducts, and AkzoNobel, a global producer of paint, coatings and specialty chemicals, announced today they have expanded their previous agreement for the joint development of Tailored™ algal oils. The expansion provides for funded development, as well as agreed key terms for a multi-year supply agreement targeting annual supply of up to 10,000 MT of the oils, pending successful product development.The parties expect that the algal oil will 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.
Solazyme, Inc, a pioneer in renewable oils and bioproducts, and AkzoNobel, a global producer of paint, coatings and specialty chemicals, announced today they have expanded their previous agreement for the joint development of Tailored™ algal oils. The expansion provides for funded development, as well as agreed key terms for a multi-year supply agreement targeting annual supply of up to 10,000 MT of the oils, pending successful product development.
The parties expect that the algal oil will 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.
“This expanded partnership marks an important step forward in our relationship while underscoring the importance we place on developing sustainable, high-performance products,” said Solazyme CEO Jonathan Wolfson. “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.”
“This agreement shows we follow through on our strategies and partnership commitments,” said Peter Nieuwenhuizen, AkzoNobel’s Director of Innovation and Partnerships, who heralded his company’s partnership with Solazyme in a piece earlier this month. “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.”
Product development is expected to commence immediately, and the parties anticipate entering into a definitive supply agreement as they near completion of product development.
This is not the first partnership of its kind for Solazyme, which in September announced a similar agreement with Unilever – the consumer goods giant’s Lux soap is now the world’s first soap brand to be made with algal oil.
Published Jul 31, 2014 2pm EDT / 11am PDT / 7pm BST / 8pm CEST