Bayer, Neste close commercial agreement to jointly scale newgold® winter canola for biofuels production

Bayer announced Sept. 9 that it has finalized a commercial agreement with Neste, a leading global producer of renewable diesel and sustainable aviation fuel (SAF), to jointly scale Bayer’s newgold® winter canola.

The collaboration will enable Bayer to significantly expand acres of winter canola in the Southern Great Plains of the U.S., strengthening the oilseed-supply potential of feedstocks with lower carbon intensity to meet the growing global demand for biofuels such as renewable diesel and SAF, which is estimated to increase almost threefold reaching approximately 40 billion gallons by 2040.

The high protein meal from the winter-canola grain will be sold into the feed market, offering additional feed sources for dairy and beef cattle, poultry and swine markets. 

“In times of geopolitical tensions, the need for more energy security and resilience while decarbonizing the transportation sector leads to growing demand for renewable fuel,” said Frank Terhorst, the head of strategy and sustainability for Bayer’s crop-science division. “This agreement further underscores Bayer’s commitment to help scale biofuels production. We see the Southern Great Plains as an untapped opportunity for winter canola. The launch of newgold® winter canola will provide farmers with a profitable rotational crop with wheat and improve land utilization, while offering the opportunity to participate in a growing biofuels market.”

Bayer and Neste are establishing a newgold® network with additional value-chain partners to support the expansion of winter canola and ensure an additional market for farmers.

“Maximizing the contribution of novel types of raw materials to support growth in renewables requires open supply-chain collaboration,” said Artturi Mikkola, a feedstock and trading executive with Neste. “By building robust value chains, we can turn agricultural innovations into scalable realities for growers and energy markets. Through the Bayer newgold® winter canola collaboration, we are establishing a value chain in one of Neste’s key markets and developing opportunities to increase farm yields and grower income. This renewable raw material can be scaled rapidly in the coming years, which can help meet increasing biofuels demand.”

Bayer aims to launch newgold® winter canola hybrids in the fall of 2027.

These hybrids offer farmers several benefits, including winter-hardiness, TruFlex®, Bayer’s second-generation Roundup Ready trait technology, and pod shatter-resistance technology.

Together, these advancements can deliver strong potential for yield performance and higher oil content.

TruFlex winter canola, sold under the newgold® seed brand, will be designed with the goal of acting as a new profit opportunity for the Southern Great Plains, giving growers the flexibility to decide how and where it fits best in their operation.

Biofuels can play a key role in helping the transportation sector in its energy transition since electrification may not be feasible in all transportation systems like aviation, rail, heavy-duty equipment or marine.

Biofuels can be produced from renewable organic materials like corn, soy, canola and other intermediate oilseed crops, such as winter canola.