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 met脿 del 2030. Corteva contratter脿 agricoltori in Nord e Sud America e in Europa per coltivare semi di senape, girasole e canola. L'iniziativa 猫 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 pi霉 tardi nello stesso anno.
Corteva (NYSE: CTVA) y bp anunciaron su intenci贸n de formar una empresa conjunta centrada en la producci贸n de materias primas de biocombustibles a base de cultivos para combustibles sostenibles de aviaci贸n (SAF). La asociaci贸n tiene como objetivo entregar un mill贸n de toneladas m茅tricas de materias primas de biocombustibles anualmente para mediados de la d茅cada de 2030. Corteva contratar谩 a agricultores en Am茅rica del Norte y del Sur, y en Europa para cultivar semillas de mostaza, girasol y canola. La iniciativa est谩 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 m谩s tarde ese mismo a帽o.
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Corteva (NYSE: CTVA) et bp ont annonc茅 leur intention de cr茅er une coentreprise ax茅e sur la production de mati猫res premi猫res de biocarburants agricoles pour le carburant d'aviation durable (SAF). Ce partenariat vise 脿 livrer un million de tonnes m茅triques de mati猫res premi猫res de biocarburants chaque ann茅e d'ici le milieu des ann茅es 2030. Corteva s'engagera avec des agriculteurs en Am茅rique 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 a茅roports de l'UE. Les entreprises pr茅voient de finaliser les accords en 2025, avec un d茅but des op茅rations plus tard dans l'ann茅e.
Corteva (NYSE: CTVA) und bp haben ihre Absicht angek眉ndigt, ein Joint Venture zu gr眉nden, das sich auf die Produktion von kultur-basierten Biokraftstoff-Rohstoffen f眉r nachhaltigen Flugkraftstoff (SAF) konzentriert. Die Partnerschaft zielt darauf ab, bis zur Mitte der 2030er Jahre j盲hrlich eine Million metrische Tonnen Biokraftstoff-Rohstoffe zu liefern. Corteva wird Landwirte in Nord- und S眉damerika 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-Flugh盲fen verlangt. Die Unternehmen planen, die Vertr盲ge im Jahr 2025 abzuschlie脽en, mit dem Start der Operationen sp盲ter 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聽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聽.
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This release contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and may be identified by their use of words like "plans," "expects," "will," "anticipates," "believes," "intends," or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company's expectations related to regulatory approvals, product development, product offerings and product, financial or sustainability performance are forward-looking statements. The company disclaims and does not undertake any obligation to update or revise any forward-looking statement, except as required by applicable law. A detailed discussion of some of the significant risks and uncertainties which may cause results and events to differ materially from such forward-looking statements or other estimates is included in the "Risk Factors" section of the company's Annual Report on Form 10-K, and as modified by subsequent reports on Form 10-Q and Current Reports on Form 8-K.
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FAQ
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