AGCO Corp. (NYSE: AGCO), a worldwide manufacturer and distributor of agricultural equipment, was recently selected for negotiations leading to an award by the U.S. Department of Energy.

With the actual DOE grant of up to a$5 million, AGCO’s Research and Development (R & D) team will seek to demonstrate the viability of a hay product as a least-cost, near-term means for supplying high tonnage biomass feedstocks to cellulosic bio-fuel processors.

The project is focused on the efficient collection and transportation of biomass to production plants for processing. AGCO offers a full line of products including tractors, combines and windrowers to compliment the entire biomass collection process.

“AGCO’s R & D team has earned the recognition that accompanies this award. Their work in the area of biomass positions AGCO well as an accomplished supplier in this growing market segment,” said Garry Ball, Senior Vice President of Global Engineering.

To deliver the objectives of the grant, AGCO will be working with industry leading renewable fuel producers, such as: POET, Abengoa Bioenergy, and Terrabon. AGCO will also be working as well with industrial experts who have focus on bio-fuels and energy crops such as Idaho National Laboratory, The Samuel Roberts Noble Foundation, Texas A&M University, Oklahoma State University, Iowa State University, and the energy crop company, Ceres, Inc.