Bayer and Neste - one of the world’s leading producers of sustainable fuels - have finalised an agreement to jointly scale Bayer’s 'newgold' winter canola as a feedstock to produce biofuels.
The companies said that the agreement will allow Bayer to significantly expand its winter canola acreage in the US’ Southern Great Plains, increasing the production of oil which can be used as a feedstock for renewable diesel and sustainable aviation fuel.
Biofuels have a key role to play supporting the transport sector’s energy transition. These fuels can be produced from renewable crops such as corn, soy, canola and other oil seed crops.
“In times of geopolitical tensions, the need for more energy security and resilience while decarbonising the transportation sector leads to a 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.
Bayer adds that the high protein meal from the winter canola grain, will be sold to the animal feed market, for dairy and beef cattle, poultry and pigs.
The launch of the newgold winter canola offers farmers a profitable rotational crop with wheat and a way to improve land utilisation as well as a way to participate in the growing biofuels market, Bayer said.
Bayer and Neste will also establish a newgold network which will include additional “value chain partners to support the expansion of winter canola and ensure an additional market for farmers.”
Artturi Mikkola, senior vice president of renewable products feedstock sourcing and trading at Neste 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.”
In a separate development Eni and Petronas have reached an agreement to evaluate the development of innovative high-performance bio-gasoline, based on Eni’s Ecofining process technology. The partners signed their collaboration agreement during the 2026 Formula 1 Italian Grandprix.
The partners say that the aim of their agreement is to “assess the technical, market, and sustainability profiles as well as the performance levels of new bio-gasolines from renewable raw materials, that can be used in motorsport competitions and subsequently applied to the development of commercial products.” The agreement will see Eni contribute its experience in sustainable energy solutions and in the production of commercially available biofuels from renewable feedstock. Petronas will contribute is expertise in fuel technology, from fossil-based fuels to high-performance sustainable fuels for combustion engines.
Petronas is set to bring onstream, during 2028, a joint venture biorefinery located in Pengerang, Johor, Malaysia. The Pengerang Biorefinery is expected to process up to 650 000 tpa of renewable feedstock to produce sustainable aviation fuel, hydrotreated vegetable oil (HVO) diesel, and bio-naphtha.
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