Corteva Announces Intent to Partner with bp to Develop Low Carbon Intensity Bio-Feedstock for Aviation Fuel Production
Corteva (NYSE: CTVA) and bp announced their intent to form a joint venture focused on producing crop-based biofuel feedstocks for sustainable aviation fuel (SAF). The partnership aims to deliver one million metric tons of biofuel feedstocks annually by mid-2030s. Corteva will contract farmers in North and South America, and Europe to grow mustard seed, sunflower, and canola feedstocks. The initiative aligns with EU's SAF mandate requiring 20% SAF by 2035 and 70% by 2050 at EU airports. The companies plan to finalize agreements in 2025 with operations starting later that year.
Corteva (NYSE: CTVA) e bp hanno annunciato la loro intenzione di formare una joint venture focalizzata sulla produzione di materie prime biofuel vegetali per il carburante per aviazione sostenibile (SAF). La partnership mira a fornire un milione di tonnellate metriche di materie prime biofuel ogni anno entro la metà del 2030. Corteva contratterà agricoltori in Nord e Sud America e in Europa per coltivare semi di senape, girasole e canola. L'iniziativa è in linea con il mandato SAF dell'UE che richiede il 20% di SAF entro il 2035 e il 70% entro il 2050 negli aeroporti dell'UE. Le aziende prevedono di finalizzare gli accordi nel 2025 con l'inizio delle operazioni più tardi nello stesso anno.
Corteva (NYSE: CTVA) y bp anunciaron su intención de formar una empresa conjunta centrada en la producción de materias primas de biocombustibles a base de cultivos para combustibles sostenibles de aviación (SAF). La asociación tiene como objetivo entregar un millón de toneladas métricas de materias primas de biocombustibles anualmente para mediados de la década de 2030. Corteva contratará a agricultores en América del Norte y del Sur, y en Europa para cultivar semillas de mostaza, girasol y canola. La iniciativa está alineada con el mandato de SAF de la UE que requiere un 20% de SAF para 2035 y un 70% para 2050 en los aeropuertos de la UE. Las empresas planean finalizar los acuerdos en 2025, comenzando operaciones más tarde ese mismo año.
Corteva (NYSE: CTVA)와 bp는 지속 가능한 항공 연료(SAF)를 위한 작물 기반 바이오 연료 원료를 생산하는 조인트 벤처를 구성할 의사를 발표했습니다. 이 파트너십은 2030년대 중반까지 매년 100만 미터 톤의 바이오 연료 원료를 제공하는 것을 목표로 하고 있습니다. Corteva는 북미, 남미 및 유럽에서 농부들과 계약하여 겨자씨, 해바라기, 유채 원료를 재배합니다. 이 이니셔티브는 2035년까지 SAF의 20%와 2050년까지 70%를 요구하는 EU의 SAF 의무와 일치합니다. 두 회사는 2025년까지 계약을 마무리하고 동일 연도 후반에 운영을 시작할 계획입니다.
Corteva (NYSE: CTVA) et bp ont annoncé leur intention de créer une coentreprise axée sur la production de matières premières de biocarburants agricoles pour le carburant d'aviation durable (SAF). Ce partenariat vise à livrer un million de tonnes métriques de matières premières de biocarburants chaque année d'ici le milieu des années 2030. Corteva s'engagera avec des agriculteurs en Amérique du Nord et du Sud, ainsi qu'en Europe, pour cultiver des graines de moutarde, de tournesol et de colza. Cette initiative est en accord avec le mandat SAF de l'UE, qui exige 20 % de SAF d'ici 2035 et 70 % d'ici 2050 dans les aéroports de l'UE. Les entreprises prévoient de finaliser les accords en 2025, avec un début des opérations plus tard dans l'année.
Corteva (NYSE: CTVA) und bp haben ihre Absicht angekündigt, ein Joint Venture zu gründen, das sich auf die Produktion von kultur-basierten Biokraftstoff-Rohstoffen für nachhaltigen Flugkraftstoff (SAF) konzentriert. Die Partnerschaft zielt darauf ab, bis zur Mitte der 2030er Jahre jährlich eine Million metrische Tonnen Biokraftstoff-Rohstoffe zu liefern. Corteva wird Landwirte in Nord- und Südamerika sowie Europa beauftragen, Senfsaat, Sonnenblumen und Raps anzubauen. Die Initiative steht im Einklang mit dem SAF-Mandat der EU, das bis 2035 20% SAF und bis 2050 70% an EU-Flughäfen verlangt. Die Unternehmen planen, die Verträge im Jahr 2025 abzuschließen, mit dem Start der Operationen später im selben Jahr.
- Creation of new revenue stream for farmers through biofuel feedstock production
- Strategic positioning to meet growing SAF demand driven by EU mandates
- Leveraging Corteva's global scale and farmer relationships for feedstock production
- Partnership with major energy company bp enhances market access and capabilities
- Long timeline to reach full production capacity (mid-2030s)
- Significant capital investment likely required for scale-up
- Regulatory dependent business model relying on government mandates
Insights
This strategic partnership positions Corteva to capitalize on the growing sustainable aviation fuel (SAF) market, driven by regulatory mandates in the EU requiring
The partnership leverages Corteva's agricultural expertise and farmer relationships to develop specialized crops for SAF production. This diversification into biofuel feedstocks aligns with global decarbonization trends and positions Corteva to benefit from both US and EU policy incentives. The timing is particularly strategic given the increasing regulatory pressure on aviation emissions and growing demand for sustainable fuel alternatives.
The introduction of dedicated biofuel crops creates a new market dynamic in agricultural commodities. By focusing on mustard seed, sunflower and canola, Corteva is targeting crops that can be integrated into existing rotation systems while offering farmers additional revenue opportunities. This approach minimizes disruption to food supply chains while establishing a parallel market for biofuel feedstocks.
The partnership with bp provides important downstream integration, ensuring stable demand and potentially more predictable pricing for these specialty crops. This vertical integration model could provide Corteva with competitive advantages in the emerging SAF feedstock market.
The JV envisaged by Corteva and bp would produce and deliver crop-based biofuel feedstocks to help meet the anticipated growth in demand for 'sustainable aviation fuel' (SAF).
A number of countries around the world have, or are in the process of implementing, mandates or tax incentives to promote the decarbonization of the aviation sector. In the EU a SAF mandate begins in 2025 that will require fuel uplift at EU airports to contain at least
To help meet this demand, Corteva and bp have executed a non-binding memorandum of understanding, with the intent of forming a JV that would aim to progressively scale up volume, reaching delivery of one million metric tons per year of biofuel feedstocks for SAF production by the mid-2030s.
Corteva plans to contract with farmers in
"This partnership is proof positive that agriculture can continue to be part of the solution to the world's decarbonization opportunities, including by leveraging Corteva's technology, global scale, and unique grower relationships. We are excited at the prospect of partnering with bp to help the European airline industry become more sustainable while giving farmers a new source of income," said Corteva Chief Strategy Officer, Brook Cunningham.
"We see great potential in a partnership with Corteva - together, we are well positioned to deliver value through leveraging Corteva's technology and grower relationships and bp's refining and trading capabilities," said Emma Delaney, executive vice president, customers & products, bp.
The two companies anticipate finalizing definitive agreements in 2025 with the target operational date for the JV later in the year.
About Corteva Agriscience
Corteva, Inc. (NYSE: CTVA) is a global pure-play agriculture company that combines industry-leading innovation, high-touch customer engagement and operational execution to profitably deliver solutions for the world's most pressing agriculture challenges. Corteva generates advantaged market preference through its unique distribution strategy, together with its balanced and globally diverse mix of seed, crop protection, and digital products and services. With some of the most recognized brands in agriculture and a technology pipeline well positioned to drive growth, the company is committed to maximizing productivity for farmers, while working with stakeholders throughout the food system as it fulfills its promise to enrich the lives of those who produce and those who consume, ensuring progress for generations to come. More information can be found at www.corteva.com.
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SOURCE Corteva, Inc.
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