Solazyme and Dow Enter into Contingent Global Commercial Offtake Agreement and Concurrently Sign Phase 2 Joint Development Agreement to Accelerate Commercialization of Bio-based Dielectric Insulating Fluids
New algal oil to provide higher flash point and increased
functionality to dielectric insulating fluids for transformers and other
electrical applications
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--
Solazyme,
Inc. (NASDAQ: SZYM), a renewable oil and bioproducts company, and
The Dow Chemical Company (NYSE: DOW), announced today that they have
entered into a contingent offtake agreement in which Dow has agreed to
purchase from Solazyme all of its requirements of non-vegetable
microbe-based oils for use in dielectric fluid applications through
2015, contingent upon Solazyme's ability to supply such oils within
agreed specifications and certain terms and conditions of the sale.
These new, renewable and biodegradable bio-based dielectric insulating
fluids offer increased fire safety thanks to higher flash points and
provide additional functionality that may improve the operating
efficiency and extend the useful life of transformers.
Concurrently, Solazyme and Dow have entered into a Phase 2 Joint
Development Agreement (JDA2), an exclusive, multi-year extension of the
current joint-development agreement including accelerated
commercialization timelines based on Solazyme's rapid progress in the
production of tailored algal oils. JDA2 enables additional application
development work to be conducted by Dow, due to Solazyme's accelerated
ability to scale up their uniquely tailored algal oil feedstocks.
Consumption of Solazyme's algal oil feedstocks is expected to
significantly exceed the minimum estimated volumes of 8.5 million
gallons (29,000 metric tons) starting in the second half of 2013 and
through 2015. The offtake agreement contemplates that final pricing for
the oil will be linked to certain items including Solazyme's sugar-based
feedstock costs.
"Solazyme's unique biotechnology-based oils platform has created a new
market opportunity to develop and produce the next-generation of safe,
renewable, dielectric insulating fluids that provide increased
performance benefits," said Jonathan Wolfson, CEO, Solazyme. "We have
continued to reach technological advancements ahead of schedule with
Dow, enabling us to further progress our commercial relationship."
"Solazyme is a leading company in the industrial biotechnology space and
its renewable oil technology platform provides a unique opportunity to
significantly accelerate the development of next-generation, bio-based,
non-vegetable dielectric insulating fluids," said Tim Laughlin, General
Manager, Dow Electrical & Telecommunications. "In the fast-growing space
of bio-based dielectric insulating fluids, Solazyme's tailored algal
oils will serve as a technology platform for our continued efforts to
bring innovative solutions to the power industry. Advanced field trials
in transformers will be initiated to further prove the technology and
value proposition of these new products in the near term. Based on the
application work we have already completed to date, we are confident we
are positioned to commercialize these oils in timelines consistent with
Solazyme's planned ability to manufacture the quantities we need."
About Dow Electrical & Telecommunications
Dow Electrical & Telecommunications, a business unit in the Performance
Plastics Division of The Dow Chemical Company ("Dow"), is a leading
global provider of products, technology, solutions and knowledge that
sets standards for reliability, longevity, efficiency, ease of
installation and protection that the power and telecommunications
industries can count on in the transmission, distribution and
consumption of power, voice and data. Understanding that collaboration
is essential to success, Dow E&T works together with cable makers, other
industry suppliers, utilities, municipalities, testing institutes and
other organizations around the world to help develop solutions and
create mutual value that will sustain these industries for years to
come. For more information, visit www.dow.com/electrical.
About The Dow Chemical Company
Dow (NYSE: DOW) combines the power of science and technology 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 2011, Dow had annual sales of
$60 billion and employed approximately 52,000 people worldwide. The
Company's more than 5,000 products are manufactured at 197 sites in
36 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.
About Solazyme
Solazyme, Inc. is a renewable oil and bioproducts company that
transforms a range of low-cost plant-based sugars into high-value
tailored 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'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. For more information, please visit our
website: http://www.solazyme.com
Solazyme®, the Solazyme logo and other trademarks or service names are
the trademarks of Solazyme, Inc.
Forward-Looking Statements:
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
about Solazyme, including statements that involve risks and
uncertainties concerning: its commercialization plans and
commercialization timetable for tailored oils; the attributes of its oil
applications; the potential ability of its oils to improve efficiency
and extend the life of transformers; Dow's potential future purchases of
Solazyme oils and the volume and timing thereof; Dow's future use of its
oils for the dielectric market; and Solazyme's ability to maintain its
collaboration with Dow. 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; its limited experience in constructing and operating
commercial manufacturing facilities; delays related to construction,
facilitization 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 Annual Report
on Form 10-K for the year ended December 31, 2011, 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.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50261897&lang=en
Dow Electrical & Telecommunications
Holiday Watson,
+1-281-966-4198
hlwatson@dow.com
or
Solazyme,
Inc.
Genet Garamendi, +1-650-963-5228
ggaramendi@solazyme.com
Source: The Dow Chemical Company
News Provided by Acquire Media
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