Nuseed and bp Products North America Inc, have entered into a long-term strategic offtake and market development agreement, that will see bp, or its affiliates, purchase Nuseed Carinata oil to process or sell into growing markets for the production of 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.
Increased global demand for biofuels is being driven by the need to access sustainable sources of energy to help achieve global greenhouse gas (GHG) reduction targets.
The agreement is for an initial 10-year term and will see Nuseed continue to develop and expand its existing network of growers, channel and supply chain partners to deliver Carinata oil to bp or its affiliates, with key steps of crop production independently audited and certified. The Carinata oil will be processed by bp or affiliates through its bio refining footprint and also sold into growing markets for the production of sustainable biofuels.
“Nuseed Carinata is a proven, drop-in solution for biofuel processors that’s ready to scale globally on existing farmland between main food crops. Nuseed Carinata demonstrates how agriculture and energy companies can work together to meet demand for biofuels that lower lifecycle carbon emissions.”
Brent Zacharias, Nuseed group executive.
Nuseed is currently increasing commercial production in Argentina and planning expansion programs in South America and the United States. Initial research and market development programs are also underway in Europe and Australia. bp expects to initially target low-carbon biofuel markets in Europe and North America.
Already an active participant in the biofuels supply chain, the bp group aims to more than double its bioenergy portfolio globally by 2025 – and to quadruple it by 2030 – compared to 2019.
“Sustainable biofuels have a vital role to play in decarbonising transport. 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.”
Carol Howle, executive vice president, trading & shipping at bp
For more information on bp’s strategic agreement with Nuseed Carinata please click here.