Solazyme Agrees To Supply Tailored Algal Oil To Unilever - Quick Facts

(RTTNews) - Solazyme, Inc. (SZYM), a renewable oil and bioproducts company, Wednesday said that it has executed a commercial supply agreement with Anglo-Dutch consumer goods giant Unilever Plc (UL, ULVR.L, UN) for the first partnered Solazyme Tailored Algal Oil.

Solazyme said the companies have been collaborating for five years on multiple projects with increasing levels of success culminating in this initial supply agreement.

The agreement covers the first of Solazyme and Unilever's jointly developed tailored oils with an initial supply of at least 10,000 metric tons. The oil will be produced at the Solazyme Bunge Renewable Oils facility, a joint venture of Solazyme and Bunge located in Brazil.

Supply delivery is planned to begin in early 2014 and Unilever expects to purchase the full volume within twelve to eighteen months. Customary product validation trials are scheduled to take place in the fourth quarter, 2013.

Jonathan Wolfson, CEO, Solazyme, said, "Unilever is a highly valued strategic partner that has greatly influenced our ability to scale our tailored oil technology over the past several years. We look forward to the opportunity to continue to build and expand our relationship with Unilever as we take this next step in commercializing the world's first tailored renewable oil production platform. We expect this to be the first of many supply agreements with Unilever."