Global seed company Nuseed and British multinational oil and gas company BP have agreed a 10-year offtake deal to promote the use of carinata oil as a biofuel feedstock, Nuseed announced on 1 February.
As part of the agreement, BP will purchase Nuseed’s carinata oil and process or sell it into growing markets to supply sustainable biofuels.
Nuseed carinata is a non-food cover crop that can be used to produce low-carbon biofuel feedstock that is independently certified, sustainable and scalable, according to the company.
“Sustainable biofuels have a vital role to play in decarbonising transport,” BP executive vice president (trading & shipping) Carol Howle said.
“By working with Nuseed, we can use their sustainable feedstock to help decarbonise challenging transportation sectors such as aviation, supporting the production of sustainable aviation fuel (SAF) and other biofuels.”
Initially set up for a 10-year term, the agreement would involve Nuseed continuing with the expansion of its network of growers and supply chain partners to deliver carinata oil to BP or its affiliates, Nufarm said.
A subsidiary of Australian agricultural chemical firm Nufarm, Nuseed added carinata to its global portfolio in November 2019, following a successful pilot project in Argentina.
Nuseed was currently increasing commercial production in Argentina and planning expansion programs in South America and the USA, the company said, with initial research and market development programmes also underway in Europe and Australia.
BP expects to initially target low-carbon biofuel markets in Europe and North America, according to the statement. The company produces renewable diesel from biomass-based feedstocks, including in the USA, where it recently announced a project to expand total annual renewable diesel production to an estimated 2.6M barrels this year.
