SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Solazyme, Inc. (NASDAQ: SZYM), a renewable oil and bioproducts company, and Archer-Daniels-Midland Company (NYSE: ADM), a leading global agricultural processor, announced today the signing of strategic collaboration, manufacturing and market development agreements in which Solazyme and ADM will produce Solazyme’s tailored algal oils in ADM’s advanced fermentation plant at Clinton, Iowa. These oils will be sold primarily to the industrial and nutritional markets in North America. Under the terms of the agreement, Solazyme will initially target the production of 20,000 metric tons of oil in 2014, with an aim to increase production to 100,000 metric tons in subsequent years.
“This agreement with ADM will further establish our commercial footprint in the U.S. for renewable oil production capacity at ADM’s Clinton, Iowa facility. This world-class facility and operating team are perfectly suited to run our tailored oil fermentation technology. Further, the location’s substantial renewable oil production capacity is in close proximity to our North American target customers,” said Jonathan Wolfson, CEO Solazyme. “ADM is also one of the largest marketers and suppliers of triglyceride oils with decades of experience and expertise in fats and oils. This collaboration offers a unique opportunity for Solazyme to access both capital-efficient manufacturing capacity and ADM’s unique research and application resources.”
ADM’s wet mill, which is adjacent to the fermentation plant, will initially provide dextrose for the fermentation; and steam and power will be delivered from ADM’s cogeneration facility that is partially fired with renewable biomass.
“This agreement with Solazyme allows us to profitably redeploy a world-class manufacturing asset that was previously used for PHA production and has been idle since January 2012,” said Mark Bemis, ADM senior vice president and president, Corn. “Solazyme has a portfolio of products for food and industrial applications that we think makes this collaboration an excellent option for this facility.”
Minor retrofitting and permitting for the Clinton fermentation plant will begin immediately. Commercial production is expected to begin in early 2014.
About Solazyme, Inc.
Solazyme, Inc. (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.
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve vital needs. Today, 30,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa into products for food, animal feed, industrial and energy uses. With more than 270 processing plants, 420 crop procurement facilities, and the world’s premier crop transportation network, ADM helps connect the harvest to the home in more than 160 countries. For more information about ADM and its products, visit www.adm.com.
Forward Looking Statements
This press release contains certain forward-looking statements about Solazyme, including statements that involve risks and uncertainties concerning: its commercialization plans and commercialization timetable for tailored oils; market opportunities; the capacity of the facility; development of additional tailored oils; meeting commercialization and technology targets; and Solazyme's ability to maintain its relationships with its partners. When used in this press release, the words “will”, “expects”, “intends” and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: Solazyme’s limited operating history; its limited history in commercializing products; implementation risk in deploying new technologies; implementation risk in deploying its technology at ADM’s Clinton facility; its limited experience in constructing and operating commercial manufacturing facilities; market acceptance of its products; delays related to retrofitting, permitting or start-up of production facilities; its access to adequate supply of feedstock on favorable terms; its ability to enter into and maintain strategic collaborations; its ability to obtain requisite regulatory approvals; and its access, on favorable terms, to any required financing. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of the information in this press release.