Algae oil maker Solazyme filed for an IPO late Friday, joining the pack of next-gen biofuel IPOs that have occurred in recent months (Amyris, Gevo, and another one coming soon according to investor Vinod Khosla). While it’s not the first algae company to file an S-1 — PetroAlgae filed a pretty weak one back in August — it’s the first algae oil company that I know of that is generating real revenues, and has a shot at a decent public market debut.
Here’s Solazyme’s S-1 by the numbers:
Maximum IPO offering: $100 million
Revenues, losses: For the year ended December 31 2010, Solazyme generated revenues of $37.97 million and lost $16.28 million over the same period. That’s compared to generating revenues of $9.16 million, and losing $13.67 million for the year ended 2009. Those losses are not bad at all compared to the dozen of so greentech S-1′s I’ve read over the past couple of years. As of December 31, 2010, Solazyme had accumulated a deficit of $52.8 million.
Size of target market: Solazyme says its algae-based oil can be a replacement product for oils derived from petroleum, animal oils and plant oils. That combined market was a $3.1 trillion industry in 2010 says Solazyme.
Cost of algae oil production: Solazyme says it will be able to produce algae oil for the fuels market at “below $1,000 per metric ton ($3.44 per gallon or $0.91 per liter) if produced in a built-for-purpose commercial plant.”
Volumes with partners: Solazyme says Dow Chemical will purchase up to 20 million gallons of its oils in 2013, and 60 million gallons in 2015. At the same time, Qantas will purchase a minimum of 200 to 400 million liters of jet fuel per year. The company produced around 80,000 liters of algae diesel and jet fuel for the Navy in 2010.
Current production: Solazyme says over the past year it has produced 500,000 liters of algae oil.
New production facility: Solazyme says this month it entered into an agreement to purchase a facility in Peoria, Illinois, that has 128,000-liter fermenters, and an annual production capacity of over 2 million liters of algae oil.
Nutritional products: Solazyme says it has created a 50/50 JV with Roquette Freres (a big ol’ starch company) to produce nutritional products, and will create a 50,000 metric ton per year plant near Roquette’s mill to produce those products.
Patents: Solazyme says as of the first of March, the company owned two issued patents and over 125 patent applications.
Private Equity: Solazyme has raised $129.3 million in equity from companies including Bunge N.A Holdings, Chevron, Unilever ad San -Ei Gen FFI Inc.
Investors: The Roda Group holds 29.8 percent before the offering, the co-founders Harrison Dillon and Jonathan Wolfson both own 9.7 percent, The Fiddler Group owns 7.9 percent, Lightspeed Venture Partners owns 6 percent, and Braemer Energy ventures holds both 5.4 percent and 10.7 percent through two different funds.