Solazyme Opens up on the Stock Market Today (SZYM)
Solazyme, an algal oil company that is using fermentation methods to grow its algae (ie feeding it sugar), has opened up today on the stockmarket with a strong outlook. Already, its looking like they will set a record for the industry with Solazyme worth around $227 million. Why has this algae company down so well where otheres haven’t? Biofuels Digest points to this:
Solazyme also defied the conventional wisdom that algae is a phantom feedstock by delivering more than 450,000 gallons under a series of government fuel contracts, and commencing delivery to a wide array of bio-based product partners for fragrances, skincare, food products, fuels and bio-based chemicals. Among their diverse set of offtake partners the US Navy, Dow Chemical and LOreal.
As Digest contributor Peter Brown remarked, The key of course is that Solazyme produced, not much, but enough for a proof of concept. A number of companies have come to the table with no actual production figures, and that puts them squarely in the DotCom scenario. This can only be good for the industry and other biofuels companies should take heed.
In the aftermarket, the company can be expected to reap the benefits of a relatively strong commitment to communications and outreach dating back to, say, the Soladiesel-powered car seen at the Sundance Film Festival back in 2008 for the debut of the documentary Fields of Fuel, and continuing today, with the company having 9,000 followers on Twitter, by far the largest company following we are aware of.
I think they hit the nail on the head. Solazyme has had a strong history of producing products in a wide variety of sectors (from biofuels to cosmetics). The only other thing I would add is that OriginOil, an algae biofuel technology company, has had some recent commercial successes (as well as having over 14,000 followers on Twitter, username: OriginOil).
Check out Solazyme at http://www.Solazyme.com And OriginOil at http://www.OriginOil.com
Read the rest of the Biofuels Digest article here: http://www.biofuelsdigest.com/bdigest/2011/05/27/solazyme-ipo-nets-up-to-227m/
