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Bayer and Neste have finalized a commercial agreement to jointly scale Bayer's newgold winter canola, a move designed to expand the supply of lower-carbon-intensity oilseed feedstocks for renewable diesel and sustainable aviation fuel.
Under the collaboration, Bayer, headquartered in St. Louis, Missouri, intends to significantly expand winter canola acreage across the southern Great Plains. The two companies estimate that production could reach approximately 40 billion gallons by 2040, targeting the growing global demand for biofuels. The high-protein meal derived from winter canola grain will be sold into the feed market, providing an additional protein source for dairy and beef cattle, poultry, and swine.
'In times of geopolitical tensions, the need for more energy security and resilience while decarbonizing the transportation sector leads to growing demand for renewable fuel. This agreement further underscores Bayer's commitment to help scale biofuels production,' said Frank Terhorst, head of strategy and sustainability for Bayer's Crop Science division. He added: 'We see the southern Great Plains as an untapped opportunity for winter canola. The launch of newgold winter canola will provide farmers with a profitable rotational crop with wheat and improve land utilization, while offering the opportunity to participate in a growing biofuels market.'
Bayer and Neste are also building a newgold network with additional value chain partners to support the expansion of winter canola and ensure a reliable market for farmers.
'Maximizing the contribution of novel types of raw materials to support growth in renewables requires open supply chain collaboration. By building robust value chains, we can turn agricultural innovations into scalable realities for growers and energy markets,' said Artturi Mikkola, senior vice president of renewable products feedstock sourcing and trading at Neste. He added: 'Through the Bayer newgold winter canola collaboration, we are establishing a value chain in one of Neste's key markets and developing opportunities to increase farm yields and grower income. This renewable raw material can be scaled rapidly in the coming years, which can help meet increasing biofuels demand.'
Bayer plans to launch newgold winter canola hybrids in the fall of 2027. The hybrids deliver several agronomic benefits, including winter hardiness, TruFlex (Bayer's second-generation Roundup Ready trait technology), and pod shatter resistance. Together, these traits are designed to support improved yield performance and higher oil content. TruFlex winter canola, marketed under the newgold seed brand, is positioned to provide a profit opportunity for growers in the southern Great Plains, giving them flexibility to integrate the crop into their operations.
Biofuels are expected to play a key role in the energy transition of the transportation sector, particularly in segments such as aviation, rail, heavy-duty equipment, and marine transport, where electrification remains challenging. Biofuels can be produced from renewable organic materials including corn, soy, canola, and intermediate oilseed crops such as winter canola.
Bayer recently presented its biofuels platform at its investor day in Huxley, Iowa, highlighting an emerging portfolio of intermediate biofuel crops that includes camelina, winter canola, and CoverCress.
Source: hpj.com