Nuseed and bp have signed a 10-year offtake and market development agreement 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 sustainable and scalable.
Under the agreement, bp or it affiliates will buy Nuseed Carinata oil to process or sell into growing markets for sustainable biofuels production.
Nuseed Group Executive Brent Zacharias said: “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.
“This agreement enables us to accelerate the expansion of Carinata production to increase biofuel feedstock sustainably, while supporting higher economic returns on Nuseed’s investment in the Carinata platform.”
Nuseed is currently increasing commercial production in Argentina and planning expansion in South America and the US.
Initial research and market development programmes are also underway in Europe and Australia, with bp planing to initially target the low carbon biofuel markets in Europe and North America.
Carol Howle, Executive Vice President, trading & shipping at bp added: “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.”