BioBlend Renewable Resources, a leading manufacturer
and marketer of bio-based lubricants, today
announces second-round venture capital funding from
Archer Daniels Midland Company (ADM). BioBlend will
use this funding to further expand its manufacturing
and marketing of green lubricants to customers and
local distributors. In exchange for its support, ADM
will gain a minority share position in BioBlend.
So why is this important to lubricant
distributors?
Because according to BioBlend's president Sam
Burkett, BioBlend offers lubricant distributors
"something new and profitable to add to their
product portfolio, and whereas most lubricant
manufacturers are looking to reduce the number of
distributors it does business with, BioBlend plans
to add 50 new lubricant distributors in the next two
years to create a nationwide renewable lubricant
distribution and marketing platform."
Whereas many distributors in the industry are
struggling to push through price increases and grow
their business with me-too products, Burkett
says,"BioBlend represents a high-value product line
in the rapidly growing "green" segment of the
market." Compared to traditional lubricants,
bio-based lubricants reduce water pollution and
improve the sustainability of the supply chain,
while protecting valuable equipment.
Based on market research by Petroleum Trends
International, Inc. these so called "green"
lubricants are one of the bright spot in the
lubricants business. Demand for green lubricants is
growing at particularly fast pace with city and
state governments, companies engaged in drilling for
oil, natural gas, and water; rigging, elevator and
escalator, towing and other companies employing the
use of wire ropes, chains, and open gears. In
addition, growth in demand is seen at airports,
agriculture, and other niche applications where the
potential for lubricant exposure to the environment
is comparatively high, as are the costs for
remediation when contamination occurs. And when you
consider that BioBlend's chain and cable lubricants
(based on Conola oil), as well as others in its line
are H-1 approved, it's easy to see the competitive
advantage they can offer over conventional
lubricants in environmentally sensitive
applications. Burkett adds, "Virtually any user of
petroleum-based lubricants can benefit from their
adoption."
According to Burkett, "BioBlend is expanding its
distribution center and quality control laboratory
in Joliet, Illinois, to provide more support for
industries that need custom biodegradable lubricant
blends, such as original equipment manufacturers,
environmentally conscious retailers and government
agencies seeking to comply with the USDA procurement
guidelines for bio-based products." In addition,
Burkett adds, "BioBlend is actively working to
advance its business through strategic partnerships
with lubricant technology intellectual property
holders in order to better use its unique
distribution and marketing platform."
