This delivery was in satisfaction of a contract announced in 2009 and included refining partner Honeywell's UOP and their proprietary UOP/Eni EcofiningTM process technology.

Solazyme also announced the signing of a new contract with the U.S. Department of Defense (DoD) for a research and development project that will produce 150,000 additional gallons in 2010-2011, which is 7.5 times larger than the previous order. The successful delivery followed by the much larger contract furthers Solazyme's push to commercial production.

"We are excited by the new DoD contract which calls for much larger volumes of SoladieselHRF-76 Renewable Naval Distillate fuel, and view its signing on the heels of our successful delivery as strong validation of Solazyme's technology and of our prospects to provide meaningful quantities of low carbon fuels for our national defense," said Solazyme's CEO Jonathan Wolfson.

"Working with the Navy, DLA Energy and the DoD to collectively lead the drive for advanced low carbon fuels is an honor. Our renewable oil production technology which results in a 100% military-spec, drop-in replacement fuel from algae can be a significant component of the Navy's long term strategy to supply 50% of its energy from renewables by 2020."

This is Solazyme's third advanced biofuels contract with the DoD in the past year. The new agreement calls for additional research and development using Solazyme's innovative renewable oil production technology platform and culminates with the delivery of up to 150,000 gallons of in-specification 100% algal-derived Soladiesel HRF-76 fuel for the U.S. Navy's testing and certification program.

F-76, of which HRF-76 is the renewable version, is the primary shipboard fuel used by the Navy. Solazyme has contracted with the Defense Contract Support Office Philadelphia on behalf of Defense Logistics Agency Energy at the Headquarters of the Defense Logistics Agency, Fort Belvoir, VA.

Last September, Solazyme announced two DoD contracts to research, develop, and demonstrate commercial-scale production of algal-derived advanced biofuels to meet the U.S. Navy's rigorous specifications for military tactical platforms for both ships and jets. The first contract called for the production of 20,000 gallons of Soladiesel HRF-76, which was fulfilled with this fuel delivery, and the second called for 1,500 gallons of the world's first 100% algae-derived jet fuel for testing and certification by the U.S. Navy.

The delivery of 1,500 gallons of SolajetHRJ-5 was completed earlier this summer during the Farnborough International Air Show with Honeywell's UOP again serving as the refining partner with their Green Jet Fuel process technology.

"Reducing dependence on foreign oil is a national security imperative, and Solazyme's technology focuses on producing an abundant, domestic and renewable source for oil and fuels," Wolfson added.

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