Solazyme, Inc. (NASDAQ: SZYM) is surging on news this morning that the renewable oil and bioproducts outfit has formed a joint venture with a unit of Bunge Limited (NYSE: BG) to build, own and operate a commercial-scale renewable tailored oils production facility adjacent to Bunge’s Moema sugarcane mill in Brazil.
The venture will operate under the name Solazyme Bunge Produtos Renováveis Ltda. and is expected to have an annual production capacity of 100,000 metric tons of oil. The facility will utilize Solazyme’s renewable tailored oil production technology and will also utilize Bunge’s sugarcane supply and processing capabilities. The move will allow the production of sustainable tailored triglyceride oils for use in oleochemical and fuel applications in the Brazilian domestic market.
While the exact financial terms of the agreement were not disclosed, it is being treated as a win for Solazyme with a 7.6% gain to $15.40 in the pre-market trading. Solazyme has a market value of $863 million and this company just came public last summer.
JON C. OGG