Unilever agrees multi-year supply deal of €200m+ personal care algae oils
The five year agreement reflects the culmination of more than seven years of collaboration between Solazyme and Unilever, and will build on this initial supply relationship for the purchase of renewable algae oils, which the consumer goods firm began incorporating into its products in 2014
These oils are being produced and delivered to Unilever routinely from the Solazyme Bunge Renewable Oils facility, and the new multi-oil supply agreement includes a broad portfolio of oils for use in its personal care products.
"The decision to use algae oils is fully aligned with the Unilever Sustainable Living Plan and with our goal to grow the business while reducing our overall environmental footprint,” says Alan Jope, Personal Care President of Unilever.
“We have been working with Solazyme for many years to develop novel ingredients from algae, which improve the performance and sustainability profile of our personal care products. Solazyme has already been delivering consistent, sustainable and high performing algae oils, and we look forward to this next and greatly expanded commercial phase of the relationship."
Renewable oil production
Production of the oils will take place at the Solazyme Bunge Renewable Oils facility in Brazil and pricing terms are based upon variable production cost plus a defined contribution margin.
Oils purchased under this new supply agreement are expected to represent total revenue of more than $200 million over the term of the agreement.
“Our mission is to deliver products from algae that are better for people and better for our planet,” adds Jonathan Wolfson, TerraVia's CEO.
“The growth of our partnership reflects over seven years of collaboration during which we have demonstrated our ability to develop and deliver unique, high performance, and highly sustainable oils at scale, as we continue our shift to focusing on higher value products."
The Solazyme Bunge Renewable Oils facility in Brazil produces more oil per hectare/acre with a lower greenhouse gas footprint than nearly all major commercially available plant oils.
The Brazil facility embodies the principles of sustainable production and is co-located with a Bonsucro-certified sugarcane mill that uses the waste sugarcane material (bagasse) as an efficient, renewable source of energy.
