Nuseed and BP Products North America Inc., have entered into a long-term strategic offtake and market development agreement that will see bp, or its affiliates, purchase Nuseed Carinata oil 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.
Increased global demand for biofuels is being driven by the need to access sustainable sources of energy to help achieve global greenhouse gas (GHG) reduction targets.
The agreement is for an initial 10-year term and will see Nuseed continue to develop and expand its existing network of growers, channel and supply chain partners to deliver Carinata oil to bp or its affiliates, with key steps of crop production independently audited and certified. The Carinata oil will be processed by bp or affiliates through its bio refining footprint and also sold into growing markets for the production of sustainable biofuels, utilizing the global reach of bp’s Trading and Shipping (T&S) team to accelerate market adoption of Nuseed Carinata as a sustainable biofuel feedstock.
Nuseed is currently increasing commercial production in Argentina and planning expansion programs in South America and the United States. Initial research and market development programs are also underway in Europe and Australia. bp expects to initially target low-carbon biofuel markets in Europe and North America.
bp is already an active participant in the biofuels supply chain. bp produces renewable diesel from biomass-based feedstocks, including in the United States where it recently announced a project to expand renewable diesel production capability to an estimated 2.6 million barrels a year in 2022. Globally, the bp group aims to more than double its bioenergy portfolio by 2025 and to quadruple it by 2030 compared to 2019.