AMSTERDAM, The Netherlands - Bioproducts manufacturer Solazyme Inc. and AkzoNobel have expanded their previous joint development agreement. The expansion provides funds for product development and terms for a multi-year supply agreement. The supply agreement has a targeted annual supply of up to 10,000 MT of renewable tailored algal oils, pending successful product development.
The parties expect that the algal oil under the joint development agreement would be able to replace both petroleum and palm-oil-derived chemicals. The target product is designed to have improved functional and environmental performance, in addition to a lower overall cost, for AkzoNobel.
Product development is expected to begin immediately, and the parties anticipate entering into a definitive supply agreement as they near completion of product development.