Solazyme Climbs on 10,000-Ton Renewable-Oil Unilever DealJustin Doom
Solazyme Inc., a U.S. producer of renewable oil from algae, climbed the most in more than six weeks after signing a supply deal with Unilever NV.
The company gained 7.4 percent to $11.51 at the close in New York, the most since Aug. 8.
Solazyme will deliver at least 10,000 metric tons of specialty oils to the Dutch producer of household products, the South San Francisco-based company said today in a statement. Delivery will start early next year and will be complete within 18 months. Terms weren’t disclosed.
“This is about being able to demonstrate that we can be a reliable, large-scale supplier,” Chief Executive Officer Jonathan Wolfson said in a telephone interview.
This is the company’s first supply deal with Unilever, the largest supplier of household products by market value after Procter & Gamble Co.
Solazyme will produce the oil at a Moema, Brazil, plant that’s a joint venture with the agricultural company Bunge Ltd. The facility also may serve additional customers after it begins commercial production later this year, Wolfson said.
Solazyme makes oils from sugar-consuming algae that are processed into renewable fuel and specialty chemicals.