Bayer and Neste Expand Winter Canola Supply Chain for Renewable Fuels

Bayer and Neste have finalised a commercial agreement to jointly scale newgold® winter canola as a dedicated feedstock for renewable diesel and sustainable aviation fuel (SAF) production in the Southern Great Plains of the United States.

The partnership aims to expand winter canola acreage and establish a reliable supply of lower-carbon-intensity oilseed feedstock as demand for renewable fuels continues to grow. The global biofuels market is projected to reach around 40 billion gallons by 2040, increasing the need for diversified and scalable feedstock sources.

Bayer plans to launch newgold® winter canola hybrids from 2027, featuring winter hardiness, TruFlex® herbicide tolerance and pod-shatter resistance. These characteristics are designed to improve crop resilience and harvesting efficiency for farmers in the region.

The partnership will also create value from the crop’s high-protein meal, which will be marketed to the animal feed industry. This provides an additional revenue stream for farmers while improving overall land-use efficiency.

For Neste, the agreement represents an opportunity to develop a new agricultural feedstock value chain in one of its key renewable fuel markets. The companies expect the collaboration to support the expansion of renewable fuel production while creating additional farm income and contributing to the decarbonisation of the transport sector.