Nufarm Ltd. has expanded its partnership with BP as it looks to scale the production of sustainable biofuels for the aviation and heavy transport sectors.
The updated agreement extends the marketing and offtake term for Nufarm’s Carinata crop until 2050, providing a long-term framework to meet the surging global demand for sustainable aviation fuel (SAF) and renewable diesel (RD).
The deal will support the expansion of Carinata oil supply, which is a non-food intermediate crop grown on existing farmland during off-seasons.
Because it is integrated into diversified crop rotations, it does not compete with food production.
When processed into fuel, Carinata oil delivers substantial greenhouse gas (GHG) savings compared to traditional fossil fuels.
The deal introduces a new funding model based on the achievement of specific milestones. This will enable targeted investment in seed technology to improve crop performance while maintaining what Nufarm describes as a disciplined, capital-light investment approach.
Since the initial 2022 agreement, the program has expanded from Argentina into Brazil, Paraguay, and Uruguay.
Nufarm has also launched a pilot program in Australia, leveraging its extensive local grower and supply chain networks.
Nufarm CEO Rico Christensen said the agreement supports the growth pathway for Nufarm Carinata as it anchors long-term demand with a global leader.
“Demand for biofuels is growing rapidly as hard-to-electrify industries, including aviation and heavy transport, look for abatement solutions,” Christensen said.
“Demand is running well ahead of supply as government mandates require industry to meet interim emissions targets by 2030 and net-zero targets by 2050.”
Beyond the environmental impact, the program offers Australian and international farmers a chance to generate additional value from their land.
By using Carinata as a rotation crop, farmers can diversify their income streams while benefiting from the agronomic advantages of crop rotation.
