04/29/2008

Mendel Biotechnology Inc. is getting lessons from an agricultural master, Monsanto Co. of Creve Coeur, in developing a grass crop for use in producing biofuel.

The companies said Monday that Monsanto will lend its crop-testing, breeding and seed-production expertise to the Bioenergy Seeds & Feedstocks unit of Mendel, based in Hayward, Calif.

Mendel will apply this knowledge to a type of elephant grass that is native to China, but not the U.S., in hopes of developing a plentiful and easily grown source of fuel for the world's growing number of trucks and cars.

Scientists in many companies and research institutions are tackling the challenges of unlocking energy from cellulose — leaves, stems, stalks or other non-edible parts of plants. Success could alleviate the demand for corn-based ethanol that is putting pressure on world stocks of food and animal feed.

"We expect that (cellulosic biofuel) industry to start to scale and mature in the next decade, and we think we'll be on pace to match that with seed varieties" for farmers to plant as a feedstock, said Neal Gutterson, Mendel's president and chief executive.

Together, the companies have several competitive advantages: Monsanto is a global leader in breeding, genetically modifying and commercializing corn, soybean, cotton and other seeds. Mendel owns potentially useful lines of Miscanthus sinensis seed — a type of high-yielding wild perennial grass — and is partnering with Chinese university researchers to work with others. And last year, petroleum giant BP said it is funding Mendel's research program through 2012.

BP exchanged its investment for a stake in Mendel. Monsanto, too, is a shareholder after years of collaborating with Mendel on the development of biotechnology traits for crops including corn, soybeans, cotton and canola.

So, if Mendel succeeds in commercializing Miscanthus sinensis seed for biofuel production, Monsanto also will benefit.

The partners said they will begin with a conventional breeding program to domesticate and improve Miscanthus sinensis for use as a crop. Genetic modifications may come "down the road," said Michael Edgerton, head of Monsanto's corn-technology team that works on biofuels.

Monsanto is at the cutting edge of developing corn with traits that improve the ethanol production process. It also is working with sugar cane, the core crop for biofuel production in countries including Brazil.

"After sugars and starches, the next frontier really is cellulosic" for biofuel production, Edgerton said. "It's a new area where there's an awful lot to discover. … This partnership is a great entree into this area for us."

rmelcer@post-dispatch.com | 314-340-8394