Boston's Metabolix (NASDAQ: MBLX) said today that it plans to genetically engineer a new oilseed crop optimized for producing bioplastics.

Oilseeds are already the primary feedstock for biodiesel.

As part of this initiative, Metabolix has established a strategic research collaboration with oilseed experts at the Donald Danforth Plant Science Center, a not-for-profit research institute in St. Louis, Missouri.

The collaboration is supported by a 2-year, $1.14 million grant from the Missouri Life Sciences Trust Fund to the Danforth Center.

“This initiative aims to create another biobased route to economically produce bioplastics and biofuels in high yields directly in non food crops,” said Dr. Oliver Peoples, co-founder and Chief Scientific Officer of Metabolix.

Metabolix has already engineered enhanced switchgrass, and is also developing sugarcane crops to co-produce biobased and biodegradable plastic within the leaves and stems of the crops to more economically meet clean energy and bioplastic needs globally.

While potentially offering higher yields, critics of genetically engineered crops fear unknown and unintended consequences of introducing man-made plant life into nature.

In 2007, Metabolix announced the development and commercialization of its Mirel™ bioplastics, what it described as a sustainable and biodegradable alternative to petroleum based plastics (see Metabolix and ADM bioplastic fantastic).

Metabolix and Archer Daniels Midland (ADM) are commercializing Mirel through a joint venture called Telles.

The first commercial scale Mirel production plant is being constructed adjacent to ADM's corn mill in Clinton, Iowa.

The plant is expected to begin operations in late 2008 and is intended to produce up to 110 million pounds of Mirel annually.

Shares of Metabolix were trading essentially flat at $16.97 this morning. The company's 2007 high was almost $29.