US-based based bio-fuel company Poet has signed a supply agreement with crop breeder Chromatin to secure domestically grown sorghum for the production of ethanol.

As per the terms of the agreement, Chromatin will support 4,400 acres of sorghum grain production in South Dakota; Poet is expected to employ the grains to be processed into ethanol at its Chancellor plant in Sioux Falls.

Commenting on the alliance Chromatin CEO Daphne Preuss has remarked that the partnership marks a significant step in extending the use of sorghum for producing energy-efficient bio-fuels.

"Ethanol producers are embracing the benefits of sorghum as a drop in replacement for corn," added Preuss.

Poet plant management operations vice president Rod Pierson noted, "Sorghum is a fantastic grain for producing biofuel, and this arrangement will enable us to better manage costs and balance feedstock markets."

The company’s Sioux Fall plant has an annual production capacity of 110 million gallons with 35 million bushels of corn.