Nufarm expands partnership with BP, extends carinata offtake term to 2050

Photo: Nufarm

Nufarm Ltd. announced March 26 that it has expanded its strategic partnership with BP, reinforcing Nufarm’s ambition to scale sustainable biofuels and help meet growing demand for sustainable aviation fuel (SAF) and renewable diesel.

The updated agreement provides a long-term framework that supports the scalable growth of carinata to be used as a nonfood intermediate crop biofuel feedstock.

Nufarm announced an update to its carinata offtake agreement with BP, which was first announced in 2022, delivering the following benefits:

• The marketing and offtake term is extended to 2050.

• The deal will support the expansion of carinata-oil supply, which is underpinned by an established, capital-efficient value chain and proven partnerships spanning from growers to biofuel producers.

• A funding model based on the achievement of stated progress milestones, enabling investment in carinata-seed technology to deliver improved crop performance and varieties to growers.

• BP’s continued access to purchase oil from the Nufarm carinata production system.

The offtake agreement has been amended and extended to position carinata to grow at scale, with a disciplined, capital-light investment model and an acceptable level of capital commitment from Nufarm.

Nufarm carinata oil is a nonfood feedstock grown on existing farmland as part of diversified crop rotations and is independently certified and audited by the Roundtable on Sustainable Biomaterials.

SAF produced from carinata oil delivers considerable greenhouse-gas (GHG) savings when compared to the fossil equivalent on a lifecycle basis.

Since the initial agreement with BP in 2022, the program has expanded from Argentina to include Brazil, Paraguay and Uruguay, alongside a pilot in Australia, supported by Nufarm’s grower, channel and supply-chain network.

The program enables growers to participate in growing biofuels markets while delivering agronomic benefits through crop diversification and rotation.

“The agreement with BP supports the growth pathway for Nufarm carinata by anchoring long‑term demand with a global energy major,” said Nufarm CEO Rico Christensen. “Demand for biofuels is growing rapidly as hard-to-electrify industries including aviation and heavy transport look for abatement solutions. Demand is running well ahead of supply as government mandates are requiring industry to meet interim emissions targets by 2030 and net-zero targets by 2050.”

Christensen continued, saying, “Nufarm carinata is a proven feedstock solution for biofuel processors that is scaling globally on existing farmland as a dedicated nonfood intermediate crop. This creates opportunities for growers to generate additional value from their farming systems while delivering GHG savings for industry.”