Green is the new gold.

Mendel will make use of Monsanto’s crop testing, breeding and seed production to develop high-yield, low-input perennial grasses to serve as a feedstock for cellulosic biofuel production. . .

Monsanto is able to aggressively invest in next-generation biofuels as first-generation biofuels have created windfall profits for the company. Monsanto tripled its profits last year, due in large part to the corn ethanol boom.

Now Monsanto needs to move into cellulosic ethanol, as food-based biofuels, especially corn, have taken a beating. There have been numerous frozen ethanol refinery projects and the public backlash in the food vs. fuel debate has further dampened food-based ethanol investments. Though it will probably take a few years to develop and pay off, Monsanto’s play into cellulosics will likely further increase that profit growth.

Then, after a while, there will be a new round of frozen ethanol refinery projects and public backlash when people finally grok the consequences of growing crops for fuel, even though the crops are lower input cellulose producers such as grasses. But, another round of triple profits will have been tucked away, and a new lemony fresh opportunity will be in the works.

You get what you manage for, whether you understand what that will be or not.