Bayer and Neste have signed a memorandum of understanding to jointly scale winter canola production in the US. The collaboration aims to develop a winter canola ecosystem in the Southern Great Plains to supply lower-carbon oilseed feedstocks for renewable fuels like sustainable aviation fuel and renewable diesel.
The partnership between Bayer and Neste aims to bolster the supply chain for renewable fuels by developing winter canola as a sustainable feedstock, potentially impacting the cost and availability of biofuels and contributing to decarbonization efforts in the transportation sector.
Bayer and Neste have entered into a memorandum of understanding (MOU) to jointly scale winter canola production in the United States, aiming to create a supply of lower-carbon oilseed feedstocks for renewable fuels. The collaboration will focus on developing a winter canola ecosystem in the Southern Great Plains, including product development and identifying partners to establish the value chain.
Renewable fuels are seen as crucial for decarbonizing the transportation and energy sectors, with global targets driving demand for biomass-based feedstocks. Neste, a major producer of sustainable aviation fuel and renewable diesel, is exploring novel vegetable oils from regenerative farming practices to diversify its raw material pool. Winter canola, when used as a rotational crop with regenerative agriculture, can improve soil health, sequester carbon, and offer farmers new income opportunities.
Bayer plans to introduce its hybrid TruFlex winter canola in the US in 2027, emphasizing its product stability and performance. This initiative supports the broader goal of reducing greenhouse gas emissions through the use of sustainable aviation fuel and renewable diesel, which offer significant life cycle emission reductions compared to fossil fuels.