Businessweek

Solazyme, Inc. engages in the production of renewable oil. The company’s proprietary technology transforms a range of plant-based sugars into oils. The company’s renewable products can replace or improve oils derived from the three sources—petroleum, plants, and animal fats. It has an industrial biotechnology platform that harnesses the prolific oil-producing capability of microalgae. By feeding its proprietary oil-producing microalgae plant sugars in dark fermentation tanks, it is in effect utilizing ‘indirect photosynthesis.’ Its platform can utilize various renewable plant-based sugars, such as sugarcane-based sucrose, corn-based dextrose, and sugar from other sustainable biomass sources, including cellulosics. In addition, its platform allows the company to produce and sell bioproducts which are made from the protein, fiber, and other compounds produced by microalgae. Products The company’s technology platform allows it to develop tailored oils that offer its customers performance benefits relative to petroleum and other conventional oils. It is focused on producing oils and bioproducts that the company intends to sell into three target markets: fuels and chemicals, nutrition, and skin and personal care. CHEMICALS AND FUELS In the chemicals and fuels markets, products derived from the company’s oils offer drop-in replacements for marine, motor vehicle and jet fuels, as well as replacements for petrochemicals, oleochemicals and functional fluids. Chemicals The company’s tailored oils would become the basis for bio-based chemicals. Its tailored oils can replace or improve petroleum-, plant-, or animal-derived oils that are used as raw materials for the chemicals industry. The company’s technology allows it to optimize oil profiles with different carbon chain lengths, saturation levels, and functional groups to modify functional characteristics, such as melting points, oxidative stability and viscosity. The market opportunities include petrochemicals, oleochemicals, and functional fluids. Oleochemicals consist of chemical products in the home and personal care industries such as surfactants/ detergents, soaps, cosmetics and many others. These products are currently derived from petroleum, natural gas, and conventional triglyceride oils. Natural gas products, such as ethylene oxide, and petrochemical derivatives such as white oils, are produced in decades-old industrial refining facilities. Conventional triglyceride oils derived from plants and animals are processed through various oleochemical manufacturing steps, such as fatty acid splitting, fatty alcohol production, esterification, and others. Functional Fluids span a range of non-fuel industrial , such as lubricants, heat transfer fluids such as antifreeze and dielectric fluids, defoamers, solvents, and drying agents. Physical properties (viscosity and pour point), chemical properties (oxidation and reactivity) and environmental impact (biodegradability) of the oils tend to be the principal drivers of value in the functional fluid segment. Fuels The company intends to focus on diesel and jet fuel markets. In addition to selling its oils to refiners, the company can manufacture the fuel end product directly by contracting or partnering with refiners. It works with its refining partners Honeywell UOP and Dynamic Fuels, LLC to produce SoladieselRD (renewable diesel), HRF-76 renewable diesel for US Naval vessels, and Solajet renewable jet fuel for both military testing and commercial application demonstrations. NUTRITION The company’s microalgae-based food ingredients improve the nutritional profile and functionality of food products. Within its Solazyme Roquette Nutritionals joint venture, the company develops the market for its algal flour, algal oil, and Golden Chlorella products as the Solazyme Roquette Nutritionals (JV) builds commercial-scale capacity. Algal flours are dry and naturally processed microalgae-based products made through specific fermentation and downstream processing to yield either an oil- or protein-rich powder. Both powder products contain oils, protein, natural emulsifiers, and dietary fiber. Additionally, t