Solazyme Bunge Renewable Oils Joint Venture Receives Funding Approval from Brazilian Development Bank
BNDES to provide approximately USD $120 million in project financing to support sugar-to-oil production facility in Brazil
South San Francisco, Calif.-- January 16, 2013 – Solazyme, Inc. (NASDAQ: SZYM) (“Solazyme”), a renewable oil and bioproducts company, announced today that Solazyme Bunge Renewable Oils, its joint venture with Bunge Global Innovation LLC, a wholly-owned subsidiary of Bunge Limited (NYSE: BG), has received approval for project financing in the form of a loan from the Brazilian Development Bank (BNDES) of R$245,699,000 (or approximately USD$120 million based on the current exchange rate). The BNDES funding will support the joint venture’s first commercial-scale renewable oil production facility in Brazil, which is being constructed adjacent to Bunge’s Moema sugarcane mill in São Paulo state. The 8-year loan will have an average interest rate of approximately 4% per annum.
Rogerio Manso, Chief Commercialization Officer, Solazyme, stated, “Solazyme Bunge Renewable Oils is committed to commercializing innovative tailored oil technology in Brazil. This financing from BNDES highlights the significant value that the joint venture can bring to the Brazilian economy.”
The project was selected by the PAISS program, a BNDES/FINEP joint plan for stimulating industrial technological innovation in the sugar-based energy and chemical sectors. The funding is mostly provided through the BNDES PSI program (BNDES Investment Support Program) created for stimulating the production, acquisition and export of capital goods and technological innovation. Solazyme Bunge Renewable Oils broke ground in June 2012 and is scheduled to be operational in the fourth quarter of 2013. It will service the renewable chemical and fuel industries within the Brazilian marketplace and will initially target 100,000 metric tons per year of renewable oil production. In November 2012, Solazyme and Bunge announced in a framework agreement that they intend to expand production capacity from 100,000 metric tons to 300,000 metric tons globally by 2016, and that the portfolio of oils will broaden to include a range of healthy and nutritious edible food oils for sale in Brazil.
About Solazyme, Inc.
Solazyme, Inc. (NASDAQ: SZYM) is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value oils. Headquartered in South San Francisco, Solazyme’s renewable products can replace or enhance oils derived from the world’s three existing sources – petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) fuels and chemicals, (2) nutrition and (3) skin and personal care.
Solazyme®, the Solazyme logo and other trademarks or service names are trademarks of Solazyme, Inc.
About Bunge Global Innovation LLC
Bunge Global Innovation is an interdisciplinary team applying the latest thinking and technologies to drive innovation across all Bunge business segments. Its mission is to scout, develop, buy, sell or license technologies that will improve Bunge’s sustainability, profitability and competitive advantage.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company operating in over 40 countries with approximately 35,000 employees. . Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat, corn and rice to make ingredients used by food companies; and sells fertilizer in South America. Founded in 1818, the company is headquartered in White Plains, New York.
Forward Looking Statements
This press release contains certain forward-looking statements about Solazyme, including statements that involve risks and uncertainties concerning: its ability to finalize the BNDES loan; the nature of the final terms of that loan; the ability of the Solazyme Bunge joint venture to draw-down all or any funds from that loan; the ability of the Moema plant to produce tailored oils; the character of the oils produced at that plant; the value of such oils; the value that Solazyme’s technology can bring to the Brazilian economy; the timing of the commencement of operations at the Moema plant; the eventual capacity of such plant; the oils that will be produced at the plant and the industries and jurisdictions it will supply; eventual manufacturing capacity expansion by Solazyme and Bunge; the timing of any such expansion; and Solazyme's ability to maintain its relationships with its partners. When used in this press release, the words "will", "expects", "intends" and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: Solazyme's limited operating history; its limited history in commercializing products; implementation risk in deploying new technologies; its limited experience in constructing and operating commercial manufacturing facilities; delays or inability to construct or start-up production facilities, including those associated with delay or inability to acquire the facility site; its access to adequate supply of feedstock on favorable terms; its ability to manage operational costs at production facilities; its ability to enter into and maintain strategic collaborations; its ability to obtain requisite regulatory approvals; and its ability to access, on favorable terms, the required financing. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc. files with the Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of