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Solazyme, Inc. Message Board

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  • messnervan messnervan May 31, 2011 6:34 PM Flag

    A positive start

    All the costs you mention are already a part of the price of a barrel of oil.

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    • Messnervan,
      I researched your comment and it was only partially correct.
      The buyer pays cost of marine freight transport, insurance, unloading, and transportation from the arrival port to the final destination. The passing of risks occurs when the goods pass the ship's rail at the port of shipment.

      Therefore Japan (China, etc..)and any other country would be responsible for all transport cost, etc...

      Solazyme would almost eliminate transportation cost and therefore be more economical for large users since production facilities could be built next to users such as generating plants.

      • 2 Replies to palm4203
      • Actually the oil is easier to ship than the raw sugar material feeding the algae. Therefore plants near sugar sources (such as the one at Bunge) also make a lot of sense. No doubt some oil consumers are also close to feed stocks and for them it will be a win-win for sure.

      • Also - from Wikipedia...

        The price of petroleum as quoted in news generally refers to the spot price per barrel (159 liters) of either WTI/light crude as traded on the New York Mercantile Exchange (NYMEX) for delivery at Cushing, Oklahoma

        I don't think you can say "Solazyme would almost eliminate transportation cost" because there will be a cost for moving the feedstock, the finished product or both.

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