Technology for developing genetically improved food crops has had a
rocky history, with consumers largely rejecting early success in so-called Frankenfoods, including
strawberries, tomatoes and potatoes with greater yield potential and longer
shelf life. But the industry has quietly taken over the market for feed crops,
with most consumers unaware that so-called genetically modified organism, or GMO, seed now makes
up about 80% of soybeans and corn produced in North America.
Some environmentalists still
oppose the use of GMO seed, even in feed crops, because of fear that they will
creep into the human food supply. But so far there's been no great concern
expressed over GMO use in the rapidly growing biofuels sector.
Plant biotech
developers have taken advantage of that by extending the focus of research from
food to fuels, with the latest example being Ceres Inc., which just
landed $75 million in a deal led
by Warburg Pincus to support development of GMO cellulose crops after a decade
of development primarily in food and feed crops. The new funding will allow the
company to expand research in genetically modified and selectively bred cellulosic
crops, including switchgrass, sorghum, miscanthus, energycane and other woody
species for transportation fuels. The deal brings total investment in Ceres to
about $175 million.
As an illustration of the apparent lack of concern about GMO crops for
use in biofuels, the largest previous investment round in the sector
was a $22.3 million investment in Targeted Growth Inc. last February. That funding was led by Capricorn
Capital, perhaps best known for financing
Al
Gore's global warming movie "An Inconvenient Truth," and which
has focused on green investments including a stake in electric
sportscar developer Tesla Motors Inc. - Clifford Carlsen
See April 2006 story from TheDeal.com
See Sept. 27 story from Tech Confidential
See May 11 story from TheDeal.com
For more on Ceres see Biofuels Journal
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