Corteva, BP To Form JV To Develop Low Carbon Intensity Bio-Feedstock For Aviation Fuel Production

(RTTNews) - Agriculture company Corteva, Inc. (CTVA) announced Monday a collaboration with bp plc (BP, BP.L) on the companies' shared intent to form a crop-based biofuel feedstock joint venture (JV) to develop low carbon intensity bio-feedstock for aviation fuel production.

This will help meet the anticipated growth in demand for 'sustainable aviation fuel' (SAF).

In the EU a SAF mandate begins in 2025 that will require fuel uplift at EU airports to contain at least 20% SAF by 2035 and 70% by 2050.

The Corteva and bp JV would aim to progressively scale up volume, reaching delivery of one million metric tons per year of biofuel feedstocks for SAF production by the mid-2030s.

Corteva plans to contract with farmers in North and South America, and Europe, to grow proprietary Corteva mustard seed, sunflower and canola feedstocks well-suited for SAF production.

The JV would aim to introduce new cropping systems to produce oil that meets EU RED III criteria, and qualifies for US Low Carbon Intensity policy incentives, while creating a new revenue stream for farmers.

The two companies anticipate finalizing definitive agreements in 2025 with the target operational date for the JV later in the year.