Solazyme - Company History

Company History

Solazyme's, Inc., was founded on 31 March 2003, with the mission of utilizing microalgae to create a renewable source of energy and transportation fuels. Founders Jonathan Wolfson and Harrison Dillon, who met while attending Emory University, started the company in Wolfson's garage. About their partnership, Dillon said: "Neither of us wanted to go work for some giant organization where we were a tiny cog in a huge wheel. We wanted to make a difference and create something that had never existed before.”

In 2004 and 2005, Solazyme began development of an algal molecular biology platform, and identified and initiated a platform for microalgae-based oil production. The company then expanded focus to skin and personal care products.

Solazyme continued development of the algal molecular biology platform in 2006. Key microalgae strains for oil production into fuels and chemicals were identified. Solazyme demonstrated ability to produce and extract oil from microalgae, and invented alguronic acid which received positive in-vitro skin care results. The company expanded focus into nutrition.

In September 2007, Solazyme received a $2 million grant from the National Institute of Standards and Technology, signed a joint development agreement with Chevron through its division Chevron Technology Ventures, began operating in commercially sized standard industrial fermentation equipment (75,000-liter scale), worked with a third party refiner to demonstrate the compatibility of the oil with standard refining equipment, and produced over 400 liters of microalgae-based oils.

In January 2008, the company attracted attention at the Sundance Film Festival in Park City, Utah, by presenting a Mercedes Benz C320 fueled with its Soladiesel brand of algal fuel. The algal fuel-powered car was also used to call attention to the documentary film Fields of Fuel, which was playing at the festival and which featured coverage of Solazyme.

The company announced a partnership with Chevron Technology Ventures in January 2008 to explore the commercialization of algal fuel. In September 2008, the company stated it produced the world's first jet fuel derived from an algal source. Harrison Dillon, the company’s president and co-founder, announced the fuel passed eleven tests conducted at a fuel analysis laboratory that certified its worthiness for aviation usage. "This is not like conventional biodiesel, where you can take french fry grease from McDonald's and turn it into oil in your garage," said Dillon during a press conference. "Planes will fall out of the sky if you don't have a high-quality fuel that meets strict standards."

In 2009, Solazyme was awarded approximately $22 million from the United States Department of Energy for the construction of an integrated biorefinery project and two contracts from the United States Department of Defense for delivery to the United States Navy of both microalgae-based marine (renewable F-76) diesel fuel.

In 2010, Solazyme entered into a 50/50 joint venture with Roquette Freres, to develop, produce and market nutrition products worldwide. The company also saw the first launch of consumer nutrition products containing Golden Chlorella on store shelves in Whole Foods Markets and General Nutrition Centers, executed a distribution agreement with Sephora International for the Algenist skin care product brand, entered into a joint venture agreement with Therabotanics, an affiliate of a leading direct response marketing company, for the sale and distribution of another microalgae-based skin care line to be launched in 2012, and produced over 400,000 liters (364 metric tons) of oil.

To satisfy the testing and certification requirements of the United States Navy, Solazyme partnered with Honeywell UOP to refine a portion of this oil into approximately 200,000 liters (182 metric tons) of military specification marine diesel and jet fuel. In 2009, it sold 20,000 gallons of algae fuel to the Navy and in 2010 it received another purchase for 150,000 gallons. On 22 October 2010, the United States Navy conducted a full-power demonstration of Solazyme's algae-based fuel on a Navy Riverine Command Boat at the Naval Base in Norfolk, Virginia. The test showcased the compatibility of a 50/50 blend of algae-based fuel with NATO F-76 fuel. Rear Admiral Phil Cullom, Director of the Fleet Readiness Division, spoke at the demonstration, saying: "If you have alternatives other than petroleum, then you are never beholden to just one type of fuel. And those additional alternatives give you flexibility ... it's mission accomplishment because you have that additional capability." The use of alternative fuels supports Secretary Mabus' plan to reduce energy use aboard Navy ships.

In the second quarter of 2011, the company announced that it had produced over 283,000 liters of military-spec diesel (HRF-76) for United States Navy contract. The initial fuel production for phase 1 of a 550,000 liter contract was completed ahead of schedule. Additionally, the United States Navy has indicated its intent to exercise its phase 2 option, which would be produced through the first half of 2012. Sephora Canada and The Shopping Channel agreed to distribute Solazyme's anti-aging skincare line, Algenist, throughout Canada. This increases the brand's physical retail presence by 26 stores. The launch into Canada accompanies Algenist's debut in the United Kingdom, which includes distribution in all 60 Space NK locations throughout the country. Solazyme will shift the location of its integrated biorefinery to its Peoria facility. Solazyme began the build-out of this recently acquired facility, adding fermentation capacity and performing upgrades after completion of the acquisition in May 2011. The fermentation portion of this facility is expected to be operational in the second half of 2011, with end-to-end manufacturing expected in the first half of 2012.

On 8 August 2011, Solazyme and Bunge Limited announced a joint venture to develop renewable chemicals in Brazil using Solazyme's algae-based sugar-to-oil technology. Bunge owns a sugar cane mill in Brazil and both companies will contribute to retrofit that facility to produce renewable chemicals. Bunge is one of the worlds' largest vegetable oil distributors and also a sugarcane processor in Brazil. It invested in Solazyme in 2010.

On 16 November 2011, the United States Navy launched its largest alternative fuel test to date, pumping 20,000 gallons of Solazyme's algae-based fuel into a destroyer ship that was to embark on a 20-hour trip along the California coast. The USS Paul H. Foster's trip from San Diego to Port Hueneme is a part of the Navy's plan to unveil next year a small carrier strike group of small ships, destroyers, cruisers, aircraft, submarines and a carrier run on alternative fuels, including nuclear power. Naval officials will use data from an earlier trip of the same route to compare how the ship performs when running on Solazyme's biofuel.