Bayer and Neste are set to expand rapeseed cultivation in the US for biofuel production

Bayer and Neste have signed a commercial agreement to jointly expand newgold winter canola production in the Southern Great Plains of the US. The oilseed is expected to be used as a feedstock for renewable diesel and sustainable aviation fuel (SAF).

The companies plan to significantly increase winter canola acreage and create an additional feedstock base for the biofuels industry. According to estimates cited by the companies, global demand for renewable diesel and SAF could nearly triple by 2040 to approximately 40 bln gallons.

For US farmers, winter canola is being positioned as an additional rotational crop with wheat. Bayer plans to launch newgold hybrids in the fall of 2027. The hybrids are expected to offer winter hardiness, pod shatter resistance, and strong yield and oil content potential.

Bayer and Neste are also establishing a network of supply-chain partners to support the purchase and processing of additional canola volumes. In addition to oil for biofuel production, processing the seed will produce high-protein canola meal for the feed sector.

The expansion of winter canola production is part of efforts to develop new biofuel feedstocks in the US. Bayer is also working with other intermediate oilseed crops, including camelina and CoverCress, aiming to increase the use of agricultural land for renewable fuel feedstock production.

Tags: Neste, rapeseed, USA, biofuel, Bayer, SAF, aviation fuel