Fresh from rebranding and changing its name from Solazyme, US-based sustainable algae technology specialist TerraVia has announced one of its most significant deals to date, inking a multi-year global supply agreement with consumer goods giant Unilever.
TerraVia said the five-year deal was expected to result in sales of renewable algae oils worth over $200m. The deal builds on an existing partnership, which has seen Unilever use Solazyme’s algae oils in some of its personal care products since 2014.
“These oils are being produced and delivered to Unilever routinely from the Solazyme Bunge Renewable Oils facility,” TerraVia said in a statement announcing the deal. “This new five-year, multi-oil supply agreement includes a broad portfolio of oils for use in its personal care products. Production of these 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.”
Jonathan Wolfson, TerraVia’s chief executive, hailed the deal as a milestone for the company, which earlier this month announced a major rebranding and re-organisation that will see TerraVia focus on providing algae oils for the food and personal care markets, while a separate unit called Solazyme Industrials will continue to develop the company’s algaa-based fuel and industrial oils business.