Solazyme and Bunge Form Joint Venture for Commercial-Scale Renewable Oil Production Facility in Brazil

SOUTH SAN FRANCISCO, Calif. & WHITE PLAINS, N.Y.--()--Solazyme, Inc. (NASDAQ: SZYM) (“Solazyme”), a renewable oil and bioproducts company, and Bunge Global Innovation LLC (“Bunge”), a wholly-owned subsidiary of Bunge Limited (NYSE: BG), a global agribusiness and food company, announced today that they and other Bunge subsidiaries have signed definitive agreements forming a Joint Venture (“JV”) to build, own and operate a commercial-scale renewable tailored oils production facility adjacent to Bunge’s Moema sugarcane mill in Brazil. The JV, which will operate under the name Solazyme Bunge Produtos Renováveis Ltda., will have an expected annual production capacity of 100,000 metric tons of oil. The facility will utilize Solazyme’s renewable tailored oil production technology, coupled with Bunge’s sugarcane supply and processing capabilities, to produce sustainable tailored triglyceride oils for use in oleochemical and fuel applications in the Brazilian domestic market. Financial terms of the agreements were not disclosed.

“Bunge is excited to partner with Solazyme to commercialize its innovative sugar-to-oil technology platform, which will enable us to link our sugar and vegetable oil value chains,” said Ben Pearcy, Managing Director, Sugar & Bioenergy, and Chief Development Officer, Bunge Limited. “The tailored oils we expect to produce will not only expand our portfolio and address the growing demand of the fuels and oleochemicals industries, but also increase our capabilities to leverage new technologies for future opportunities in sugar and bioenergy.”

“The JV’s commercial-scale production facility in Brazil will provide Solazyme with the capacity we need to produce renewable tailored oils to meet the strong demand we’re seeing in our initial target markets,” said Jonathan Wolfson, CEO, Solazyme. “As a leader in oilseed processing and sugarcane milling, Bunge brings crucial expertise and scale to the table. Their global presence in sugar and vegetable oil markets, large-scale processing experience and significant footprint in Brazil, coupled with our advanced fermentation technology, creates a powerful alliance in the rapidly emerging area of tailored oils.”

The facility, which will be equally financed by Solazyme and Bunge, has been designed to integrate with a new cogeneration unit at the Moema mill, and can be expanded for further production in line with market demand. Startup is expected in the second half of 2013.

Today’s announcement follows a history of collaboration between the two companies, beginning with Bunge’s 2010 equity investment in Solazyme, followed by a May 2011 Bunge-funded Joint Development Agreement (“JDA”) to develop oils that could be sold commercially. Also in May 2011, Solazyme granted warrants to Bunge for the purchase of Solazyme shares, conditional on key milestones related to the timely implementation of the JV and plant construction. In August 2011, Solazyme and Bunge announced that they had entered into a Joint Venture Framework Agreement setting forth the preliminary terms of the JV and commencing engineering for the plant. This series of agreements has now culminated in the formation of the JV.

About Solazyme, Inc.

Solazyme, Inc. (NASDAQ: SZYM) is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value oils. Headquartered in South San Francisco, Solazyme’s renewable products can replace or enhance oils derived from the world’s three existing sources – petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) fuels and chemicals, (2) nutrition and (3) skin and personal care. Solazyme®, the Solazyme logo and other trademarks or service names are trademarks of Solazyme, Inc.

About Bunge Global Innovation LLC

Bunge Global Innovation is an interdisciplinary team applying the latest thinking and technologies to drive innovation across all Bunge business segments. Its mission is to scout, develop, buy, sell or license technologies that will improve Bunge’s sustainability, profitability and competitive advantage.

About Bunge Limited

Bunge Limited (www.bunge.com) (NYSE: BG) is a leading global agribusiness and food company with approximately 32,000 employees in more than 30 countries. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat and corn to make ingredients used by food companies; and sells fertilizer in North and South America. Founded in 1818, the company is headquartered in White Plains, New York.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including “may,” “will,” “should,” “could,” “expect,” “anticipate,” “believe,” “plan,” “intend,” “estimate,” “continue” and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.

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Contacts

Solazyme, Inc.
Genet Garamendi, VP of Communications, 650-780-4777
Press@solazyme.com
or
Bunge Limited
Susan Burns, 914-684-3246
susan.burns@bunge.com

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Contacts

Solazyme, Inc.
Genet Garamendi, VP of Communications, 650-780-4777
Press@solazyme.com
or
Bunge Limited
Susan Burns, 914-684-3246
susan.burns@bunge.com