AkzoNobel, a major paints and specialty chemicals producer, and renewable oil and bioproducts company Solazyme, have expanded their previous joint development agreement targeting annual supply of up to 10,000 metric tons of renewable algal oils, pending successful product development.
The expansion provides for funded development, as well as agreed key terms for a multi-year supply agreement.
The parties expect that the algal oil under the joint development agreement would be able to replace both petroleum and palm oil-derived chemicals. The target product is designed to have improved functional and environmental performance, as well as a lower overall cost to AkzoNobel.
Product development is expected to commence immediately, and the parties anticipate entering into a definitive supply agreement as they near completion of product development.