Company initiatives, Partnership

Amyris ends Tate & Lyle toll deal

It’s payback time for taking a couple of days off from blogging and now I have to do some catching up with news. The blog has also lost its most useful web tool — the Google Reader, and I had to put something a little less reliable in its place in order to get updated press releases.

In the meantime, I came across this news from Amyris stating that the company has terminated its toll manufacturing deal with Tate & Lyle Ingredients Americas, which started in 2010. The toll manufacturing agreement entails secured manufacturing capacity for farnesene through 2016 at Tate & Lyle’s Decatur, Illinois, facility. The deal included a base monthly payment regardless of level production of Tate & Lyle’s facility in addition to a variable amount based on volume.

Amyris decided to cut off the partnership stating successful production of its Biofene farnesene at its new facility in Brazil. The Paraiso plant started initial production at the end of 2012, and contract manufacturing has been reduced to one facility at Tate & Lyle. Amyris’ farnesene production at contract manufacturers last year reportedly reached run rates of 900,000 liters per quarter and sales volume are closer to 400,000 liters per quarter.

Amyris’ Paraiso plant is supposedly capable of producing 50m liters/year of farnesene once it is is full commercial operation. Amyris expects to step up its commercial production level over a three-year period.

As for the toll manufacturing deal with Tate & Lyle, Amyris said it had no production at the Tate & Lyle facility since the first quarter of 2013.

Amyris reported that it is required to make four payments to Tate & Lyle totaling $8.8m of which $3.6m is to satisfy outstanding invoices and $5.2m in lieu of additional payments owed by Amyris. The payments are due between July 17 and December 16 of this year. No further payments will be owed for the remaining 2014-2016 toll manufacturing deal, according to Amyris.

Amyris has also assigned certain equipment to Tate & Lyle valued at $2.8m. The company said it has the right to use such secured equipment pending completion of the cash payments.

Tate & Lyle’s Decatur, Illinois, facility

About Doris de Guzman

Will Green Chemistry save the world or is it hype? Doris de Guzman examines alternative processing, new technology, R&D and other sustainability initiatives aimed at preventing pollution; replacing ingredients; and using renewable feedstocks in Green Chemistry. She has been covering the oleochemicals market for 15 years and spread her beat to inorganics, biofuels and green chemistry.

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