Solazyme Accelerates U.S. Commercialization for Renewable Oils Production with Archer-Daniels-Midland Company Agreement
Solazyme to use ADM's existing Clinton, Iowa, manufacturing facility
in capital-efficient expansion of up to 100,000 metric tons of renewable
algal oil production
SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--
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
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
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.
Genet Garamendi, 650-780-4777
Source: Solazyme, Inc.
News Provided by Acquire Media
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