Nuseed and bp enter into strategic agreement to accelerate market adoption of Nuseed Carinata as a sustainable low-carbon biofuel feedstock
01 Feb 2022
Nuseed Limited, a wholly-owned subsidiary of Nufarm Limited (Nufarm ASX:NUF), today announced that it has entered into a long-term strategic offtake and market development agreement with BP Products North America Inc. (‘bp’), an affiliate of BP p.l.c., that will see bp, or its affiliates, purchase Nuseed Carinata oil that it plans 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.
Nufarm CEO, Greg Hunt said “Nuseed Carinata is a great example of Nufarm’s approach to developing innovative solutions to support sustainable agriculture. This agreement between Nuseed and bp is validation of Nuseed Carinata’s potential as an advanced, non-food agricultural feedstock for biofuel production. As a leading global inputs provider to agriculture, Nufarm is well positioned to help drive and support the expansion of Nuseed’s Carinata platform.
“The agreement supports Nuseed’s Value Beyond Yield strategy and underpins the growth potential of the seed technologies platform. In the short term, the expansion of Nuseed Carinata is expected to be self-funding and the impact to Nufarm’s underlying earnings, while positive, is not anticipated to be material, but it has the potential to significantly increase its contribution to earnings as production ramps up in later years.”