Bayer and Neste sign to scale winter canola on the Southern Plains as a biofuel feedstock

Bayer and Neste, the renewable diesel and sustainable aviation fuel producer, have finalised a commercial agreement to jointly scale Bayer's newgold winter canola. The collaboration is to expand winter canola acreage significantly in the Southern Great Plains of the United States, strengthening the supply of lower-carbon-intensity oilseed feedstock for biofuels, whose demand the partners estimate will almost triple to about 40 billion gallons by 2040; the high-protein meal from the grain will go to the dairy, beef, poultry and swine feed markets.

'We see the Southern Great Plains as an untapped opportunity for winter canola,' said Frank Terhorst, head of strategy and sustainability for Bayer's Crop Science division, presenting the crop as a profitable rotation with wheat that improves land use and gives farmers a way into a growing biofuels market, at a time when geopolitical tension is raising demand for energy security and renewable fuel.

Bayer and Neste are building a newgold network with further value-chain partners to support the expansion and secure a market for growers. 'By building robust value chains, we can turn agricultural innovations into scalable realities for growers and energy markets,' said Artturi Mikkola, Neste's senior vice-president for renewable feedstock sourcing and trading, adding that the raw material can be scaled rapidly in the coming years.

Bayer aims to launch newgold winter canola hybrids in the autumn of 2027, offering winter hardiness, its second-generation TruFlex Roundup Ready trait and pod-shatter resistance, which together promise yield performance and higher oil content; growers are to decide how and where the crop fits their operations.

Biofuels, Bayer argues, matter where electrification is not feasible, aviation, rail, heavy equipment, shipping, and can be made from corn, soy, canola and intermediate oilseeds such as winter canola; the company presented its biofuels platform, including camelina, winter canola and CoverCress, at its recent investor day in Huxley, Iowa.

Source: AgriBusiness Global