Bayer and Neste, a producer of sustainable aviation fuel (SAF) and renewable diesel, have signed a memorandum of understanding (MOU) to jointly scale winter canola as a biomass-based feedstock for renewable products, such as biofuels.
Within the collaboration, the companies will develop a winter canola ecosystem in the Southern Great Plains of the U.S, including product development and additional collaborations to enable Bayer to enter this market, the companies say.
“Renewable fuels are playing an important role in the decarbonization of transportation and energy while global targets continue to shape biofuel markets and accelerate demand for biomass-based feedstocks going forward,” said Frank Terhorst, head of strategy and sustainability for Bayer’s Crop Science division. “We are committed to supporting farmers’ ability to deliver low-carbon feedstocks on demand, through investments in new crops like winter canola and advancements in sustainable cropping systems.”
Bayer aims to launch hybrid TruFlex winter canola in 2027; TruFlex hybrids include Roundup Ready and pod shatter resistance technology.
Leading up to launch, Bayer will work with Neste, the value chain, and farmers to introduce winter canola as a biomass-based feedstock that delivers fuel with lower carbon intensity than traditional fuel sources. Bayer and Neste expect to finalize a definitive agreement in 2025.
“This collaboration with Bayer strengthens our strategy to develop together with value chain partners regenerative agriculture concepts that can be scaled up and can play an important role in diversifying and growing the raw materials pool for all of our renewable products,” said Artturi Mikkola, senior vice president feedstock sourcing and trading at Neste. “We believe winter canola can bring environmental benefits to cropping systems and result in lower carbon intensity feedstocks that help replace fossil resources with renewable raw materials.”
