Solazyme executes JDA and LOI with DOW to advance algal technology

Solazyme, Inc., a leading renewable oils and bioproducts company, announced today the execution of both a joint development agreement (JDA) and a letter of intent (LOI) with The Dow Chemical Company (NYSE: DOW) to advance the development of Solazyme's algal oils for use in next generation, bio-based dielectric insulating fluids key to transformers and other electrical applications.

Under the terms of the joint development agreement, Dow will combine its extensive knowledge of specialty fluid formulations and dielectric insulation capabilities with Solazyme's unique feedstock capabilities to develop of a new class of algal oils tailored for optimized performance and cost in dielectric insulating fluid applications. The non-binding LOI provides that Dow may obtain up to 20 million gallons of Solazyme's oils for use in dielectric insulating fluids and other industrial applications in 2013 and up to 60 million gallons in 2015.

Solazyme Chief Executive Officer and Co-founder, Jonathan Wolfson, commented: "Dow is a world-class organization with enormous research, production and commercialization expertise in a broad range of high-value and high-growth chemical sectors. In this initial joint effort Dow and Solazyme will work to tap into the >500 million gallon dielectric insulating fluids market with novel and breakthrough bio-based solutions. In parallel we are working with Dow to explore the use of Solazyme's algal technology and oils in a wide variety of products that Dow commercializes worldwide, to help provide high performance, environmentally sustainable and cost competitive solutions to a broad set of end users."

Dow Wire & Cable General Business Manager Tim Laughlin, added: "Solazyme is a leading company in the industrial biotechnology space and its renewable oil technology platform provides a unique opportunity to significantly improve the next generations of chemical solutions." On the specifics of the opportunity Laughlin further explained, "In the fast growing space of bio-based dielectric insulation fluids, Solazyme tailor-designed algal oils will serve as a foundation to develop a new generation of fluids that are fire safe, environmentally sound, and that provide overall increased performance to users of transformers and other electrical applications."