DuPont investing in soybean oil
Aug 31, 2006

DuPont Co., the third-biggest U.S. chemical maker, and Bunge Ltd., the largest soybean processor, are expanding their soybean partnership for making healthy oils to include biodiesel products and lubricants. By JACK KASKEY, Bloomberg News
Posted Wednesday, August 30, 2006

The companies are developing soybeans that yield high-oleic oils to meet food companies' demand for healthier products with a long shelf life, Wilmington-based DuPont said Tuesday. High-oleic oil, to be available in 2008, also will be marketed as an industrial lubricant, said Erik Fyrwald, head of DuPont's agri- culture unit.

DuPont and Bunge are breeding soybeans for higher oil content to meet demand from biodiesel producers, Fyrwald said. Soybeans also are being modified so animal feed remaining after oil is removed contains higher amino acid levels to benefit livestock production, he said. Supplies of diesel fuel from vegetable oils soared 80 percent in 2005, outpacing a 14 percent gain in ethanol, the International Energy Agency in Paris said.

"Over the three years of our collaboration, we have seen the interest in biofuel, industrial and feed sectors expand exponentially," Fyrwald said. "We are making strides to bring products to market to meet the growing demand."

DuPont and Bunge changed the name of their line of soy products to Treus, from Nutrium, to reflect the expanded partnership, the companies said. Bunge, based in White Plains, N.Y., created the Solae Co. with DuPont in 2003 to make soy foods, and the venture now has more than $1 billion in sales.

Increased investment in project

DuPont's Pioneer unit boosted plantings of soybeans that yield healthier cooking oil to almost 200,000 acres this year, from 35,000 acres in 2005, DuPont said. The low-linolenic soybean oils are marketed by Bunge to food companies seeking to reduce trans fats in their products.

Next year, the beans will be planted in Pennsylvania, Illinois, Indiana, Iowa, Ohio, Michigan, Missouri and Wisconsin, DuPont said. Acreage is expected to reach 550,000 in 2007, Fyrwald said.

Low-linolenic oils are more stable, reducing the need for hydrogenation, which creates trans fats linked to heart disease. Kellogg Co., the largest U.S. cereal maker, is using Monsanto Co.'s Vistive low-linolenic soybean oil to reduce or eliminate trans fats in all of its wholesome snacks and most of its crackers, Kellogg said in December.

High-oleic and high-stearic oils in development are more stable than low-linolenic oils, allowing them to be used for frying and baking, as well as industrial lubricants, Fyrwald said. After 2010, DuPont plans to launch soybeans with enhanced omega-3, providing health benefits similar to eating fish, he said.

Shares of DuPont rose 13 cents to $39.60 in New York Stock Exchange composite trading and are down 6.8 percent this year. Bunge gained $1.95, or 3.7 percent, to $55.27, the biggest gain in a month.



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