Crop breeding technology provider, Chromatin has inked a multi-year supply agreement with US-based Pacific Ethanol.
Chromatin, as per the agreed terms will to produce and deliver locally grown sorghum to be employed in the production of ethanol.
The agreement covers up to 30,000 acres of Chromatin sorghum has to be grown and supplied to Pacific Ethanol over the course of the multi-year contract.
Chromatin chief executive officer Daphne Preuss remarked that the deal will provide an opportunity to crop producers in California with a new market for their products.
"As the benefits of sorghum become more widely known, especially its resiliency, flexibility and its affordability compared to corn, we are optimistic that it will become the feedstock of choice in ethanol production," added Preuss.
Pacific Ethanol CEO Neil Koehler noted, "We have taken initiatives to diversify our feedstock base and further reduce the carbon profile of our ethanol.
"Our agreement with Chromatin represents one of these important initiatives and will help California farmers to produce sorghum for production of low carbon ethanol and high value animal feed."
California-grown sorghum has proven to be cost effective and energy efficient and the employment of sorghum grain qualifies producers as Advanced Bio-fuel Producers, offering additional financial incentives.