Monsanto and Biosynthetic Technologies sign license and supply agreement
Monsanto Company and Biosynthetic Technologies, LLC announced license and supply agreements that will expand the market opportunity for Vistive(R) Gold soybean growers.
The collaboration creates an opportunity for use of Monsanto’s Vistive(R) Gold soybean oil in the production of biosynthetic lubricating oils.
“We have tested numerous feed stocks as part of our ongoing research and discovered excellent results using high-oleic soybean oils, in particular Vistive(R) Gold,” said Allen Barbieri, chief executive officer of Biosynthetic Technologies.
“This is an important collaboration as we move forward with our other global partners to launch their first lines of domestically-sourced, renewable biosynthetic lubricants. High-oleic soybean oils are a cost-competitive alternative to many of the feed stocks we’ve explored, and working with Monsanto is a natural fit, given our shared commitment to sustainability and the potential for this product,” he said.
Vistive(R) Gold soybeans were developed by Monsanto to improve soybean oil’s oxidative stability and reduced saturated fat. This improved oil provides benefits in both food and industrial applications that are not possible from commodity soybean oil.
Under the terms of the agreement, Monsanto has made an equity investment of US$7 million in Biosynthetic Technologies. This investment by Monsanto, in addition to investments from BP Ventures and other investors, will enable Biosynthetic Technologies to finalize construction of its pilot plant to facilitate continued product development and support the commercial launch of its products.
The company is in the final stages of successful fleet testing and certification of LubriGreen biosynthetic motor oils synthesized from high-oleic oils, such as Vistive(R) Gold.
The U.S. Department of Agriculture (USDA) deregulated the biotech trait in Vistive(R) Gold soybeans in December 2011, completing the U.S. regulatory process and allowing field testing and seed production to take place within the United States.
Monsanto, based in St. Louis, Mo., U.S.A., is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Biosynthetic Technologies LLC, based in Irvine, Calif., U.S.A., holds exclusive rights to patented technology that converts fatty acids found in plant and animal oils into high performance synthetic lubricating base oils. These “biosynthetic” base oils exhibit many superior characteristics of petroleum-based lubricating oils.