Solazyme has received a contract to continue its work stimulating various strains of algae to produce an alternative energy source for the U.S. Navy.
San Francisco-based Solazyme received the contract from the Defense Energy Support Center. Under an estimated $8.5 million deal, Solazyme will continue development of a technology for algae oil derived F-76 as a potential alternative energy source the Navy.
Officials say the Navy is expected to use the algae oil in a future alternative fuels testing and certification program.
"This is an important first step with algae oil derived alternative fuels," Kim Huntley, Defense Energy Support Center director, said in a statement.
"Not only are we helping the Navy meet its energy security and alternative fuels objectives, this contract also demonstrates the continued successful partnering of Defense Energy Support Center with our warfighter customers to help them meet their emergent energy needs."