PanAridus: Biofuels Digest’s 2014 5-Minute Guide

Company description:

PanAridus was launched in 2010 with a goal to improve the genetics of the guayule (why-you-lee) seed through the biosciences of genetics and selective breeding to the point that it would be profitable for farmers to grow, which has been the primary drawback to growing an alternative source of domestic natural rubber. Within 18 months, we not only acquired the largest number of privately owned guayule strains in the world, but we had engineered guayule strains that yielded more natural rubber per acre than is extracted from the Hevea (rubber) tree in tropical regions.

The Situation

Cooper Tire & Rubber Company recently announced that PanAridus will join the company and its consortium partners on a previously-announced $6.9 million Biomass Research and Development Initiative grant toward development of guayule plant-based polymers for use in tire manufacturing.

PanAridus has worked to uncover means for growing a higher yield of domestically grown guayule rubber per acre than from imported Hevea rubber, and even more inexpensively than synthetic rubber. Its advanced seed varieties ensure a supply of guayule rubber for applications, and their agronomic techniques give farmers a more certain and profitable crop.

Top Milestones for 2010‐13

1. PanAridus has cut the time it takes to grow the guayule bush in half, making it possible for the crop to be harvested on an annual yield, a critical milestone so that farmers can profit by growing this drought-tolerant plant.

2. In the fall of 2012, PanAridus became the first company in the guayule industry to publicly offer to sell samples of our patented guayule to any tire company that wanted an alternative to tropically grown Hevea rubber in order to meet growing domestic and global needs. Within months, three of the five top tire manufacturers in the world independently verified PanAridus’ guayule as an excellent polymer for tire manufacturing. We followed that up in 2013 by becoming the first company to produce sufficient high-grade quantities of guayule rubber samples in-house for commercial testing and use.

Major Milestone Goals for 2014–16

1. 1. In 2014, we are announcing the first batch of Plant Variety Patents for our guayule strains as well as patents for our extraction technology and our ability to measure the amount of rubber in the field. These will all make a tremendous leap forward in the industry.
2. 2. At the end of 2013, we were invited to join the USDA BRDI Grant consortium with Cooper Tire, Arizona State University and the Agricultural Research Service (ARS) of the USDA toward development of guayule-based polymers for use in tire manufacturing. In addition to developing enhanced manufacturing processes for the production of guayule solid rubber as a biomaterial for tire applications, the grant partners will be evaluating the plant’s residual biomass for biofuel applications. Our role will be as both manufacturer of guayule based raw materials as well as taking the lead in developing commercial processes to develop guayule natural rubber for the tire industry.
3. 3. Our objective is to have the agricultural acreage and extraction facility operational in early 2016 that will not only produce large quantities of guayule rubber but also co-products for industry.

Business Model: (e.g. owner-operator, technology licensor, fee-based industry supplier, investor) Technology Materials Supplier

Competitive Edge(s):

PanAridus’ competitive edge is that we are the genetic and agricultural experts in guayule production as well as the only one-stop shop for guayule in the world. We recognize with a changing climate and a growing population, the world needs to be able to grow crops more sustainably. Our drought-tolerant guayule uses about half the water of more traditional crops like cotton or alfalfa and addresses a key domestic need, as rubber is the United States second largest commodity import. With a several million ton shortfall of natural rubber expected by the end of the decade, guayule can complement existing tropical rubber supplies around the world.

PanAridus has developed the largest privately owned bank of guayule strains in the world and our agronomic advancements have demonstrated that PanAridus guayule varieties can yield more rubber per acre than the traditional source of rubber, the Hevea tree. Additionally, we’ve already cut the growing time for the guayule shrub in half, making it a viable alternative for farmers in arid climates to grow.

With our team of experienced plant geneticists we now have the largest number of plant variety protected patents for guayule in the world, and now we can say the same about our extraction technology, which is also patent pending. We were the first (and still only) to certify our seeds with Arizona Crop Improvement Association and the first to certify our acreage. When we became the first to offer samples of our guayule rubber on the open market, tire companies returned a positive verdict, citing our natural rubber as a polymer on par with one of their highest grades (TSR-10).

Website