Long-term offtake deal strengthens commercial pathway for non-food Carinata crop
In a decisive advancement for the global clean energy transition, Nufarm Limited has announced a strengthened and extended strategic collaboration with energy major bp, reinforcing a long-term commitment to scaling sustainable biofuels production through its Carinata production system — a non-food crop designed to serve as a next-generation feedstock for Sustainable Aviation Fuel (SAF) and Renewable Diesel (RD).
The revised agreement, originally initiated in 2022, extends the marketing and offtake framework through 2050, establishing one of the most durable commercial partnerships in the emerging biofuels sector and providing a foundational platform for large-scale expansion of Carinata oil supply.
At the center of this expanded partnership lies a shared ambition: to unlock a scalable, commercially viable pathway for low-carbon fuels capable of decarbonizing sectors where electrification remains technically or economically constrained — most notably aviation and heavy transport.
Carinata, a non-food intermediate oilseed crop grown within diversified agricultural rotations, is positioned as a critical bridge between traditional farming systems and the rapidly evolving renewable fuels economy. Cultivated on existing farmland, it offers growers an additional revenue stream while contributing agronomic benefits through crop diversification and soil health enhancement.
The updated framework introduces a milestone-based funding model designed to support targeted investment in Carinata seed technology, enabling continued improvements in crop performance, yield efficiency, and agronomic resilience. This capital-efficient structure allows for disciplined expansion while maintaining a controlled investment profile aligned with long-term market demand.
Under the revised agreement, bp retains continued access to purchase Carinata-derived oil from Nufarm’s integrated production system, ensuring a stable offtake channel for scaled biofuel conversion into SAF and renewable diesel pathways.
Nufarm emphasized that the partnership is underpinned by an established global value chain spanning growers, agronomic networks, supply chain partners, and biofuel processors across multiple geographies. Since the program’s inception, Carinata cultivation has expanded beyond Argentina into Brazil, Paraguay, and Uruguay, with additional pilot activity underway in Australia — reflecting growing international adoption of non-food biofuel feedstock solutions.
The Carinata oil supply chain is independently certified and audited under the Roundtable on Sustainable Biomaterials (RSB), reinforcing its compliance with internationally recognized sustainability standards. Lifecycle assessments indicate substantial greenhouse gas reductions compared to conventional fossil-based aviation fuels, strengthening its role in global decarbonization strategies.
Commenting on the announcement, Rico Christensen highlighted the significance of anchoring long-term demand with a global energy partner, noting that demand for biofuels continues to accelerate as industries such as aviation and heavy transport seek viable emissions abatement solutions in line with tightening regulatory targets toward 2030 and net-zero commitments by 2050.
He emphasized that market demand is currently outpacing supply, driven by government mandates and corporate decarbonization commitments, positioning Carinata as a strategically important solution within a rapidly expanding global biofuels ecosystem.
As the energy transition accelerates, the strengthened Nufarm–bp collaboration signals a broader shift toward agricultural integration within clean energy systems — where farmland becomes not only a source of food production, but also a foundational contributor to global decarbonization infrastructure.
With its extended horizon to 2050, the partnership stands as a long-term commitment to scaling sustainable fuel supply chains, transforming agricultural landscapes into engines of climate-aligned innovation and industrial resilience.
