Global specialty chemicals major AkzoNobel and Solazyme Inc, a renewable oil and bioproducts company, have expanded their previous joint development agreement. The expansion provides for funded development, as well as agreed key terms for a multi-year supply agreement targeting annual supply of up to 10,000 MT of renewable Tailored algal oil, 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, as well as a lower overall cost to AkzoNobel.
Jonathan Wolfson, Chief Executive Officer, Solazyme, said, “AkzoNobel has been a leader in sustainability for many years. This expanded partnership marks an important step forward in our relationship while underscoring the importance we place on developing sustainable, high performance products. The product development effort not only advances our technology platform into valuable new chemistries, but it also outlines the critical aspects of a long-term supply agreement.”
Peter Nieuwenhuizen, Director Innovation and Partnerships, AkzoNobel, added, “This agreement shows we follow through on our strategies and partnership commitments. We identified Solazyme to complement our own capabilities, and have now agreed on a joint target that should deliver a triple win: for AkzoNobel, for Solazyme as well as yielding more sustainable products for our customers and the world as part of our Planet Possible approach to sustainability."
Product development is expected to commence immediately, and the parties anticipate entering into a definitive supply agreement as they near completion of product development.