Solazyme, Bunge enter joint venture on food oils

Solazyme, Bunge enter joint venture on food oils

Partners plan to expand joint venture-owned oil production capacity from 100,000 to 300,000 metric tons by 2016.  

Harris & Harris Group Inc. (Nasdaq:TINY), an early-stage, active investor in transformative nanotechnology companies, notes that Solazyme Inc. announced that it has entered into a Joint Venture Expansion Framework Agreement with Bunge Global Innovation LLC ("Bunge"), a wholly-owned subsidiary of Bunge Limited. The agreement sets forth the intent of the partners to expand joint venture-owned oil production capacity at Solazyme Bunge Renewable Oils from the current 100,000 metric tons under construction in Brazil to 300,000 metric tons by 2016 at select Bunge owned and
operated processing facilities worldwide.

Also, the companies intend to expand the portfolio of oils to be produced out of their joint venture facility in Brazil. The expanded field and portfolio of oils would include certain tailored food oils for sale in Brazil, where Bunge is the largest supplier of edible oils through several of its retail brands. The parties intend to work together through joint market development to bring new healthy and
nutritious edible oils to the Brazilian market.

Solazyme and Archer-Daniels-Midland Company ("ADM") also announced the signing of strategic collaboration, manufacturing and market development agreements in which Solazyme and ADM will produce Solazyme's tailored algal oils in ADM's advanced fermentation plant at Clinton, Iowa. These oils will be sold primarily to the industrial and nutritional markets in North America. Under the terms of the agreement, Solazyme will initially target the production of 20,000 metric tons of oil in 2014, with an aim to increase production to 100,000 metric tons in subsequent years.

Harris & Harris Group is an investor in publicly traded Solazyme, Inc.


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