Bayer has joined forces with Neste, a leading producer of renewable diesel and sustainable aviation fuel, to jointly scale Bayer’s newgold® winter canola for biofuels production.
The collaboration will enable Bayer to significantly expand acres of winter canola in the Southern Great Plains of the US, strengthening the oilseed supply potential of lower-carbon-intensity feedstocks to meet the growing global demand for biofuels such as renewable diesel and sustainable aviation fuel, which is estimated to increase almost threefold reaching approximately 40 billion gallons by 2040.1,2 The high protein meal from the winter canola grain will be sold into the feed market, offering additional feed sources for dairy and beef cattle, poultry and swine markets.
“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. “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 establishing a newgold® network with additional value chain partners, to support the expansion of winter canola and ensure an additional market for farmers.