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."