Solazyme and Sasol sign commercial supply agreement for high erucic algal oil

Solazyme, Inc. said it has finalized an agreement with Sasol Olefins & Surfactants GmbH for the commercial supply of an algal oil rich in erucic acid (C22:1).
Sasol O&S produces and sells C22 derivatives, such as behenyl alcohol, to serve a number of applications in markets that include paper, water treatment, personal care, lubricants, oil and gas, paints, inks, coatings and adhesives.
The supply agreement covers multiple years with binding minimums and increasing supply quantities of tailored algal oil, with pricing to be competitive and indexed to Solazyme’s raw material costs.
The companies anticipate initial commercial production of the high erucic oils currently under development at one or more Solazyme or Solazyme partner manufacturing facilities, including the Solazyme Bunge Renewable Oils facility in Orindiúva, São Paolo State, Brazil, as well as Solazyme’s plant in Clinton, Iowa, U.S.A.
In addition, the two companies also executed a letter of intent to investigate expanding the terms of their agreement to a broad collaboration, including joint manufacturing and marketing of multiple tailored oils.