A partnership between Nuseed and BP to accelerate market adoption of Nuseed Carinata as a sustainable low-carbon biofuel feedstock
BP Products North America Inc. and Nuseed have agreed to a long-term strategic offtake and market development arrangement under which bp or its affiliates will 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.
The need to obtain sustainable sources of energy to assist reach global greenhouse gas (GHG) reduction targets is driving up global demand for biofuels.
“Sustainable biofuels have a vital role to play in decarbonizing transport. By working with Nuseed, we can use their sustainable feedstock to help decarbonize challenging transportation sectors such as aviation, supporting the production of sustainable aviation fuel (SAF) and other biofuels,”said Carol Howle, executive vice president, trading & shipping at bp.
“Nuseed Carinata is a proven, drop-in solution for biofuel processors that’s ready to scale globally on existing farmland between main food crops. Nuseed Carinata demonstrates how agriculture and energy companies can work together to meet the demand for biofuels that lower lifecycle carbon emissions. This agreement enables us to accelerate the expansion of Carinata production to increase biofuel feedstock sustainably while supporting higher economic returns on Nuseed’s investment in the Carinata platform,”Nuseed Group Executive Brent Zacharias said.
Nuseed will continue to build and extend its existing network of growers, channel, and supply chain partners to deliver Carinata oil to bp or its affiliates for an initial 10-year term, with essential phases of crop development being independently audited and certified. The Carinata oil will be processed and sold into growing markets for the production of sustainable biofuels by bp or its affiliates, leveraging the worldwide reach of bp’s Trading and Shipping (T&S) team to expedite market adoption of Nuseed Carinata as a sustainable biofuel feedstock.
Nuseed is now expanding its commercial production in Argentina and has plans to expand across South America and the United States. In Europe and Australia, preliminary market research and development activities are also ongoing. Initially, bp plans to focus on low-carbon biofuel markets in Europe and North America.
“The agreement between bp and Nuseed will assist with the rapid expansion of production, with bp standing as a committed buyer of feedstock and marketer of resulting fuels,”Mr. Zacharias said.
BP is already a key player in the biofuels supply chain. BP produces sustainable diesel from biomass-based feedstocks in several countries, including the United States, where it has announced a project to increase renewable diesel production capacity to 2.6 million barrels per year by 2022. In comparison to 2019, the bp group wants to more than increase its bioenergy portfolio by 2025, and quadruple it by 2030.