Bloomberg News

Solazyme Jumps on Bunge Biofuel Deal in Brazil: Sao Paulo Mover

April 03, 2012

Solazyme Inc. (SZYM:US), which develops oil products from genetically modified algae, rose the most in more than four months after announcing a joint venture with Bunge Ltd. (BG:US) to build a plant in Brazil.

Solazyme climbed 11 percent to $15.93 at 11:11 a.m. in New York. Earlier the shares gained 14 percent, the most intraday since Nov. 16.

The facility will be capable of producing 100,000 metric tons of oil a year and be built next to Bunge’s Moema sugar-cane mill, the two companies said in a statement today. It will begin operating in the second half of 2013 and costs, which weren’t disclosed, will be split between the companies.

The plant will use Bunge’s sugar-cane supply and technology developed by South San Francisco, California-based Solazyme to produce oil that may be sold to the fuel and chemicals industries, according to the statement.

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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Companies Mentioned

  • SZYM
    (Solazyme Inc)
    • $8.4 USD
    • 0.00
    • 0.0%
  • BG
    (Bunge Ltd)
    • $86.19 USD
    • 0.14
    • 0.16%
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