Agreement includes joint product development and principal terms of a multi-year supply agreement targeting annual supply of up to 10,000 MT of algal oil for surfactant production.
Solazyme, Inc, a renewable oil and bioproducts company, and AkzoNobel, a leading global paint and coatings company, and a major producer of specialty chemicals, have expanded their previous joint development agreement. 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 renewable Tailored™ algal oils, pending successful product development.
The parties expect that the algal oil under the joint development agreement would 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.
"AkzoNobel has been a leader in sustainability for many years. This expanded partnership marks an important step forward in our relationship while underscoring the importance we place on developing sustainable, high performance products," said Jonathan Wolfson, Chief Executive Officer, Solazyme. "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, Director Innovation and Partnerships, AkzoNobel. "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."
Graeme Armstrong, President & Managing Director, Surface Chemistry, AkzoNobel added: "We look forward to the joint development work with Solazyme, and are optimistic that it can make a valuable contribution to AkzoNobel’s business objectives."
Product development is expected to commence immediately, and the parties anticipate entering into a definitive supply agreement as they near completion of product development.