Bayer and Neste Partner to Scale Winter Canola Cultivation for SAF and Renewable Fuel Production
Why It MattersThe deal signals growing agricultural-industrial collaboration to secure low-carbon feedstock supply chains as global biofuel and SAF demand is projected to nearly triple by 2040.
Bayer has agreed to collaborate with Neste to expand winter oilseed crop planting in the United States for commercial biofuel production, including sustainable aviation fuel. The partnership centers on Bayer's winter canola hybrid seed brand "newgold," developed for higher oil content and low-carbon intensity markets, and targeted at the Southern Great Plains region, which Bayer describes as untapped for scaling winter canola. Bayer plans to launch newgold in fall 2027.
Under the agreement, Bayer will expand its acreage of winter canola feedstocks producing low-carbon intensity oil for alternative fuel blends in transportation, while Neste provides access to global biofuel supply chain infrastructure. Neste's renewable diesel and SAF production spans three continents, and the company expects renewables production capacity to reach 6.8 million tons annually by 2027. The newgold seed is designed to be planted between existing crop rotations and on underutilized acres during off-season or fallow periods, giving farmers an additional revenue stream.
The U.S. Canola Association has reported that canola seed yields approximately 45% oil when crushed, compared to 18% for soybeans, one of the most common biodiesel feedstocks. SAF currently accounts for less than 1% of total jet fuel use worldwide, while global aviation consumes nearly 100 billion gallons of jet fuel annually. Data cited by Bayer from the U.S. Energy Information Administration and internal figures estimate that global biofuel demand will nearly triple, reaching roughly 40 billion gallons by 2040.
Frank Terhorst, head of strategy and sustainability for Bayer's crop science division, said growing energy security needs amid geopolitical tensions are driving demand for renewable fuel. Artturi Mikkola, senior vice president of renewable products feedstock sourcing and trading at Neste, said open supply chain collaboration is needed to scale novel raw materials, adding that building robust value chains can turn agricultural innovations into scalable realities for growers and energy markets.
