11/07/2011 United Agrees to Buy Solazyme Algae Biofuel for Air Travel
United Agrees to Buy Solazyme’s Algae Biofuel for Air Travel
Bloomberg Business Week
By Ehren Goossens
Nov. 7 (Bloomberg) -- United Continental Holdings Inc., which operates United and Continental airlines, agreed to buy from Solazyme Inc. 20 million gallons (76 million liters) of jet fuel a year made from algae.
Continental Airlines is using Solazyme’s fuel blended with standard, petroleum-derived jet fuel in a flight today from Houston to Chicago, the Chicago-based airline holding company said today in a statement that didn’t include the price.
The trip is the first U.S. passenger flight to use advanced biofuels, Chicago-based United Continental said.
Solazyme will begin delivering the biofuel as early as 2014, the statement said. The South San Francisco, California- based biofuel company produces an oil from algae, and Honeywell International Inc. processes it into fuel.
Solazyme fell 4.8 percent to $9.43 at 1:32 p.m. in New York, ahead of its third-quarter earnings report that is set to be released this afternoon.
--Editors: Will Wade, Reed Landberg
To contact the reporter on this story: Ehren Goossens in New York at email@example.com
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org