Solazyme Completes Delivery of 20,000 Gallons of Renewable Distillate Fuel to Navy; Signs Second Contract for 150,000 Gallons

Solazyme, Inc. has completed delivery of more than 20,000 gallons of algal-derived shipboard fuel (SoladieselHRF-76) to the US Navy, constituting the largest delivery yet of 100% microbial-derived, non-alcohol, advanced biofuel. This delivery was in satisfaction of a contract announced in 2009 and included refining partner Honeywell’s UOP and their proprietary UOP/Eni Ecofining process technology.

F-76 is the primary shipboard fuel used by the Navy; HRF-76 is the renewable version.

Solazyme also announced the signing of a new contract with the US Department of Defense (DoD) for a research and development project that will produce 150,000 additional gallons in 2010-2011—7.5 times larger than the previous order.

We are excited by the new DoD contract which calls for much larger volumes of SoladieselHRF-76 Renewable Naval Distillate fuel, and view its signing on the heels of our successful delivery as strong validation of Solazyme’s technology and of our prospects to provide meaningful quantities of low carbon fuels for our national defense. Our renewable oil production technology which results in a 100% military-spec, drop-in replacement fuel from algae can be a significant component of the Navy’s long term strategy to supply 50% of its energy from renewables by 2020.

—Solazyme’s CEO Jonathan Wolfson

This is Solazyme’s third advanced biofuels contract with the DoD in the past year. The new agreement calls for additional research and development using Solazyme’s renewable oil production technology platform and culminates with the delivery of up to 150,000 gallons of in-specification 100% algal-derived Soladiesel HRF-76 fuel for the US Navy’s testing and certification program.

Solazyme has contracted with the Defense Contract Support Office Philadelphia on behalf of Defense Logistics Agency Energy at the Headquarters of the Defense Logistics Agency, Fort Belvoir, VA.

Last September, Solazyme announced two DoD contracts to research, develop, and demonstrate commercial-scale production of algal-derived advanced biofuels to meet the US Navy’s specifications for military tactical platforms for both ships and jets. The first contract called for the production of 20,000 gallons of SoladieselHRF-76, which was fulfilled with this fuel delivery, and the second called for 1,500 gallons of a 100% algae-derived jet fuel for testing and certification by the US Navy. The delivery of 1,500 gallons of SolajetHRJ-5 was completed earlier this summer during the Farnborough International Air Show with Honeywell’s UOP again serving as the refining partner with their Green Jet Fuel process technology.

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