Solazyme, Inc., a company making renewable oils and bioproducts from algae, announced a joint development agreement (JDA) with The Dow Chemical Company (NYSE: DOW).
The companies will work together to advance the development of Solazyme’s algal oils for use in next generation, bio-based dielectric insulating fluids used in transformers and other electrical applications.
Under the terms of the agreement, Dow will combine its knowledge of specialty fluid formulations and dielectric insulation capabilities with Solazyme’s feedstock capabilities to develop of a new class of algal oils tailored for optimized performance and cost in dielectric insulating fluid applications.
A non–binding Letter of Intent (LOI) provides that Dow may obtain up to 20 million gallons of Solazyme’s oils for use in dielectric insulating fluids and other industrial applications in 2013 and up to 60 million gallons in 2015.
“In the fast growing space of bio-based dielectric insulation fluids,
Solazyme tailor-designed algal oils will serve as a foundation to
develop a new generation of fluids that are fire safe, environmentally
sound, and that provide overall increased performance to users of
transformers and other electrical applications,” Dow Wire & Cable
General Business Manager Tim Laughlin said.
Solazyme CEO and Co-founder, Jonathan Wolfson, said: “In this initial joint effort Dow and Solazyme will work to tap into the >500 million gallon dielectric insulating fluids market with novel and breakthrough bio-based solutions. In parallel we are working with Dow to explore the use of Solazyme’s algal technology and oils in a wide variety of products that Dow commercializes worldwide.”