Calgene Inc. of Davis, Calif., has reached an agreement withMobil Oil Corp. under which it will become the exclusivesupplier of vegetable oil-based environmental awarenesslubricants (EAL), the company said Tuesday.

Calgene Chemical, a unit of Calgene, will produce Mobil'sproprietary lubricants and supply the formulated product toMobil. EAL products are similar to petrochemical-basedlubricants, but are fully biodegradable, and the companyexpects annual demand for its biodegradable products willexceed 20 million pounds by 1995.

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