SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Solazyme, Inc., a leading renewable oils and bioproducts company, announced today the execution of both a joint development agreement (JDA) and a letter of intent (LOI) with The Dow Chemical Company (NYSE: DOW) to advance the development of Solazyme’s algal oils for use in next generation, bio-based dielectric insulating fluids key to transformers and other electrical applications.
Under the terms of the joint development agreement, Dow will combine its extensive knowledge of specialty fluid formulations and dielectric insulation capabilities with Solazyme’s unique feedstock capabilities to develop of a new class of algal oils tailored for optimized performance and cost in dielectric insulating fluid applications. The non–binding LOI provides that Dow may obtain up to 20 million gallons of Solazyme’s oils for use in dielectric insulating fluids and other industrial applications in 2013 and up to 60 million gallons in 2015.
Solazyme Chief Executive Officer and Co-founder, Jonathan Wolfson, commented: “Dow is a world-class organization with enormous research, production and commercialization expertise in a broad range of high-value and high-growth chemical sectors. In this initial joint effort Dow and Solazyme will work to tap into the >500 million gallon dielectric insulating fluids market with novel and breakthrough bio-based solutions. In parallel we are working with Dow to explore the use of Solazyme’s algal technology and oils in a wide variety of products that Dow commercializes worldwide, to help provide high performance, environmentally sustainable and cost competitive solutions to a broad set of end users.”
Dow Wire & Cable General Business Manager Tim Laughlin, added: “Solazyme is a leading company in the industrial biotechnology space and its renewable oil technology platform provides a unique opportunity to significantly improve the next generations of chemical solutions.” On the specifics of the opportunity Laughlin further explained, “In the fast growing space of bio-based dielectric insulation fluids, Solazyme tailor-designed algal oils will serve as a foundation to develop a new generation of fluids that are fire safe, environmentally sound, and that provide overall increased performance to users of transformers and other electrical applications.”
Solazyme, Inc. is a renewable oil and bioproducts company and a leader in industrial biotechnology. Founded in 2003 and headquartered in South San Francisco, Solazyme's technology allows microbes to produce oil and biomaterials in standard fermentation facilities quickly, efficiently and at large scale. These oils and biomaterials are tailored not only for biofuel production, but also as replacements for fossil petroleum, plant oils and animal fats in a diverse range of products running from clean fuels and chemicals to cosmetics and foods. Solazyme's oils and fuels provide compelling solutions to increasingly complex issues of fuel scarcity, energy security and environmental impact while fitting into the pre-existing multi-trillion dollar fuel infrastructure. Solazyme's investors among others include Braemar Energy Ventures, Harris & Harris Group, Lightspeed VenturePartners, The Roda Group, VantagePoint Venture Partners, and Zygote Ventures. For more information, please visit our website: http://www.solazyme.com
About The Dow Chemical Company
Dow (NYSE: Dow) combines the power of science and technology with the "Human Element" to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2010, Dow had annual sales of $53.7 billion and employed approximately 50,000 people worldwide. The Company's more than 5,000 products are manufactured at 188 sites in 35 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.