(By Balachander) Monsanto Co. (NYSE: MON) has made an equity investment of $7 million in Biosynthetic Technologies LLC and the companies announced license and supply agreements that expand the market opportunity for Monsanto's Vistive Gold soybean oil.
Irvine, California-based Biosynthetic Technologies holds exclusive rights to patented technology that converts fatty acids found in plant and animal oils into high performance synthetic lubricant base oils.
Monsanto and Biosynthetic Technologies have announced an collaboration that creates an opportunity for use of Monsanto's Vistive Gold soybean oil in production of biosynthetic lubricant oils.
The agreements expand the market opportunity for Vistive Gold growers and is expected to increase demand for high-oleic soybean oil in the United States, Monsanto said.
Other key investors in Biosynthetic Technologies include: BP Technology Ventures, one financial investment firm and members of the management team and the Board of Directors.
"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," commented Allen Barbieri, chief executive officer of Biosynthetic Technologies.
"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," said Barbieri.
Biosynthetic Technologies offers two product lines: LubriGreen Biosynthetic Oils used in the automotive and industrial lubricants sector, and Coco Estolide esters for products used in the personal care and cosmetics sectors.
"Multiple uses of high oleic oil create greater demand for American soybean farmers and make our products more competitive in the world market," said John Motter, a Jenera, Ohio, soybean farmer and United Soybean Board Director.
MON shares ended at $86.60 on Friday.