Monsanto and Mendel Biotechnology have announced a collaborative agreement to enhance the development of Mendel's BioEnergy Seeds and Feedstocks business. Under the terms of the agreement, Mendel will benefit from Monsanto's industry-leading expertise in the testing, breeding, and development of crops.

Mendel and Monsanto have worked together on the development of biotechnology traits for more than a decade in many crops, including corn, soy, cotton and canola. In this new collaboration, the two companies will apply Monsanto's expertise in crop testing, breeding and seed production to perennial grass seed varieties Mendel is developing for use in biofuels and other commercial applications.

"Mendel sees a bright future for second generation biofuels. We recognize the need to continue growing our capabilities and expertise to enable us to best serve farmers and refiners with proprietary seed products," said Neal Gutterson, president and chief executive officer of Mendel.

"Monsanto is the global leader in the development and commercialization of high-value, sustainable seed products. We are excited to work with Monsanto's outstanding technical team to enhance our ability to create high-performing dedicated energy crops."

"Monsanto has been committed to providing farmers with higher grain yields to help them meet demand for food, feed and fuel," said Steve Padgette, vice president of biotechnology at Monsanto. "This collaboration has the potential to advance discoveries in the next frontier: cellulosic biofuels. It also presents both companies with an opportunity to broaden our understanding of the strengths and potential applications of biomass grasses to biofuels production."

Cellulosic biofuels are made from leaves, stems, stalks or other typically non-edible parts of plants. Use of these renewable energy sources has the potential to greatly expand biofuel supply and also deliver environmental benefits such as reduced greenhouse gas emissions.