Solazyme stock up 41% since IPO

Solazyme Inc., a San Francisco renewable oil and bio-products company, continues to meet with analyst’s approval as the company’s stock rose to US$25.38, up 41% from its initial public offering of US$18 per share in May. The company combines microscopic algae and plant-based sugars in a standard fermentation system to create a variety of oils that can feed into various industries such as fuels and chemicals, nutritional oils, and oil used for personal-care products, an overall market of US$1.2 trillion, according to Morgan Stanley. The company has boosted algal content per cell to more than 80%, from the natural level of 5% to 10%, and it has developed processes to tailor oil to customer specifications. The company already makes a profit from nutrition and personal-care products. Solazyme believes it can profitably enter the commercial fuels and chemicals markets once it has larger production facilities. Currently, the company is pursuing a joint development agreement between Solazyme and Bunge Ltd. to build a pilot plant to produce chemicals from sugarcane in Brazil. Other partnerships designed to gain a foothold in chemicals are being pursued with Dow Chemical Co. and Unilever PLC. (July 7, 2011)