No position. Waiting to see what the future holds. Great potential and management team for an emerging technology. When will it be profitable is a big question. Have been following the rise for 9 months.
I read recently about a solar based algae company that had problems with invasive algae outcompeting the oil producing ones. Weeds essentially. My guess may be that algae that does not produce oil may have less metabolic overhead and hence cause problems for oil algae.
This may be a benefit for Solazyme, its a closed system. Seed it well, grow and go!
I bot some shares, my only concern is more short term price action than anything else.
Thank You for your post! more good accurate Info
I knew the previous poster was once again incorrect but wanted the correct info to come from someone else. It pays to research companies and new technologies and you have done your homework.
Companies strategy: http://www.solazyme.com/strategy
Here's a link to the U.S. Navy and Solazyme's diesel product: http://www.youtube.com/watch?v=y5Jt2pjObsE
Besides Chevron and the U.S. Navy Solazyme is also partnering with Dow Chemical. Not a bad list
Messerman Solazyme certainly does produce oil and gas for in small amounts now but in the future it will be ramping up and their cost right now is 3.44 per gallon. They have a strategic arrangement with Chevron also.
hy Solazymes method is so much cheaper and less labor intensive than anyone elses
uper algae and a $3.1 trillion opportunity
Solazyme owns a unique process when it comes to producing biofuel. Instead of allowing the algae to make their own food through photosynthesis — that is, harnessing the power of the sun to turn CO2 from the air into sugar to feed itself — Solazyme turns off the lights. So instead of expending energy making sugar from sunlight and CO2, Solazyme tricks the algae by growing them in total darkness. The algae eat sugar that other plants already have converted. All of the dark algae’s energy goes into growing — fast.
Shutting the lid has other effects, too. It allows Solazyme to put the algae to work in an enclosed and tightly-controlled environment, one that eliminates variables such as temperature, acidity and contamination that can reduce the plant’s productivity.
And what, exactly, is the plant producing? Simply put, Solazyme locks a special strain of algae into a drum, throws in biomass — that is, high-sugar plant matter — and closes the lid. Just a few days later, the algae have gobbled up the sugar and the resulting mass of algae can be dropped into a conventional refinery and processed into diesel or jet fuel.
The key here is that it doesn’t take a geologic age to produce this oil. It only takes a matter of hours. And the process can be carried out in standard fermentation equipment, commercial space that can be rented from lots of industrial manufacturing companies.
Best of all, Solazyme’s special genetically engineered super algae yields much more oil than plain old wild algae. This can be quantified. Wild algae will produce oil with a volume equal to 5% to 10% of the organism’s dry cell weight. But Solazyme’s super algae produce and accumulate oil that’s more than 80% of the dry cell weight. In other words, it’s eight times more productive.
The markets for oils Solazyme can make is an astonishingly gigantic $3.1 trillion industry annually. What’s more, algae-based oil can be created on an extremely large scale and at an extremely low cost.
I agree, transportation cost will not be eliminated but greatly reduced along with insurance rates. I can also see co-located facilities in the future possible connected with a short run pipeline.
Eliminating the threat of piracy (slow moving oil tankers) is a good by-product.
Environmentally speaking removing the possibility of another BP oil spill, Exxon Valdez and yearly shut downs of oil rigs due to hurricanes would greatly improve the safety and economics of production.
Sugar cane in Indonesia and the Philippines could feed China's growth. If this pans out commodities could become a bull market for some time going forward. Farmers in the U.S. could actually start planting all their acreage.
Looks to be a win-win except for the drillers, etc...
They are not likely to be profitable until the large production plants are up and running. They are planning to have 500,000 + tons of production by 2015. First one will go online in 2013. But they also said they have 1 billion a year rev lined up for 2015 now, all they have to do is get the plants up, and most impressively they believe they will have 25% net margins at that point.
They basically just made the deal for the first plant in Brazil with Bunge a couple weeks ago, it will be 100,000 metric ton facility and I expect them to make an announcement about it's construction is beginning within a month or two. By 2013 they are also supposed to also have a 50,000 ton plant set up with Roquette if everything goes as planned.
I see great potential in the near future due to Germany's decision to dis-continue nuclear and wouldn't this be a good fit for Japan! Instead of shipping oil half way around the world they could build a production plant and produce it locally. Need to figure total cost of competing oil (geology, drilling, production, processing, shipping, pirates and politics) when comparing this company. Many good synergies and as time goes on their production could be localized to customer needs.
It's a wait and see for now but I bought in on Friday at $21.19, todays close made me happy! maybe we see $23.00 again tomorrow........$$$
This company is well diversified, has an excellent management team and has potential in the billions. It is not profitable at the moment, may never be profitable.
The potential if they use the IPO money to retrofit the plant they just bought to make combustible fuels competitive with fossil fuels is immense. An emerging green energy with the performance of fossil fuel for less money that can be used in existing distribution channels promises a new world. What seems to be to good to be true usually is, however, I am willing to follow this until it shows its color. Do some research.
If you wait till it goes to 5 it may not be worth buying as an emerging technology.
It will be profitable with 12-18 months or fail.