Renewable oils and bioproducts company Solazyme has signed a two-year joint development agreement with agribusiness and food company Bunge to develop microbe-derived oils utilizing Brazilian sugar cane feedstock.
Under the agreement, Solazyme will leverage its algal fermentation technology in combination with Bunge’s oil processing and milling capabilities to cost-effectively produce targeted triglyceride oils.
Development of microbe-derived oils will take place at Bunge’s facility in Moema, Brazil, and at Solazyme’s laboratories in South San Francisco and Campinas, Brazil.
The agreement builds on Bunge’s earlier equity investment in Solazyme, and the letter of intent signed by both firms in December 2010 that contemplates a manufacturing joint venture for the production of tailored oils at Bunge’s sugar cane mills in Brazil.
The companies also signed a warrant agreement to further align the incentives of both parties.
The facility is expected to deliver 100,000 metric tons of output oil coming online in 2013.