Global agribusiness and food company Bunge and US-based sustainable ingredients developer Solazyme are expanding their joint venture to put more focus on food.
The joint venture expansion will see the companies undertake the development of a line of innovative oils for food and products for animal nutrition as well.
The joint venture will now capitalize on the Solazyme's microalgae innovation platform and Bunge's global footprint across food and ingredients sections including vegetable oils.
Under the JV agreement, the partners will also fund research programs together to develop innovative products in nutrition and specialty fats.
The joint venture products will be manufactured in São Paulo state of Brazil, which is a site carrying the largest aerobic fermentation vessels in the world. The oils will be produced with the lowest carbon and water footprint and are expected to achieve higher oil yields per acre than other oilseed crops.
The joint venture expansion agreement entails that the marketing of AlgaWise Ultra Omega-9 Algae Oil, AlgaWise High Stability Algae Oil and AlgaWise Algae Butter structuring fats will be taken up by Bunge's food oil sales and applications team. Additionally, Bunge will oversee the oil processing and supply chain aspects.
A range of sustainable food oils will be manufactured by the joint venture company to cater to the major needs of the food industry.
AlgaWise Ultra Omega-9 Algae Oil, with high levels of monounsaturated fats of less than 90% and lowest level of saturated fat of any food oil with less than 4% is pitted as a healthier alternative to saturated fat oils, with greater shelf-life.
The company's other product is AlgaWiseHigh Stability Algae Oil contains over 87% monounsaturated fatty acids and only 2% polyunsaturates. This oil provides oxidative stability with zero trans-fat per serving. The oil is suited for industrial frying, spraying/coating, pan spraying and blending. The oil is claimed to help food manufacturers to eliminate the use of artificial preservatives in common foods such as dressings, mayonnaise, thus helping achieve clear labels and elimination of partially hydrogenated vegetable oils.
The AlgaWise Algae Butter is composed of shea stearin which are a high value structuring fats with high content of stearic-oleic-stearic triglycerides. This oil is produced to be of use in confectionery, bakery, spreads and other applications. It is expected to be available in the US market in 2016.
Bunge Limited CEO Soren Schroder said: "Strengthening our relationship with Solazyme gives us a differentiated product offering in specialty food and feed ingredients. With Solazyme, we believe we are bringing true innovation and enhanced sustainability to the global food industry. These healthier algae products have tremendous potential to make a positive impact in nutrition and functionality for our customers around the globe, and we're excited about the potential to broadly commercialize them."
Recently, Bunge has been on an acquisition spree. Last month saw the company acquire Whole Harvest Foods, a refiner and packager of expeller pressed commercial cooking oil.
