Bayer and Neste form partnership for biofuels

Bayer and Neste have signed a memorandum of understanding to expand production of winter canola as a raw material for renewable products such as biofuels. The goal is to facilitate Bayer’s entry into this market. A definitive agreement is expected to be finalized by 2025.

Bayer plans to launch TruFlex hybrid canola in 2027. The product integrates Roundup Ready technology and resistance to pod shattering, characteristics that promote greater stability and performance.

Winter canola will be used as an alternative for crop rotation, contributing to carbon sequestration in the soil and improving soil health, such as increasing organic matter and water retention capacity.

Frank Terhorst, Head of Strategy and Sustainability at Bayer’s Crop Science division, highlighted the role of renewable fuels in decarbonizing the transportation and energy sectors. He stressed that the growing demand for biofuel feedstocks creates opportunities for new investments.

Jennifer Ozimkiewicz, head of soybean and biofuels strategy for the same division, said TruFlex canola represents a profitable option for farmers, with potential sustainability benefits such as increased biodiversity, soil health and reduced pressure from pests, diseases and weeds.

The partnership with Neste, a producer of sustainable aviation fuel and renewable diesel, seeks to diversify renewable raw materials and develop regenerative agriculture concepts.

According to Artturi Mikkola, senior vice president of raw material sourcing and marketing at Neste, winter canola can reduce the carbon intensity of raw materials and replace fossil resources with renewable sources.