Corteva Inc. (NYSE: CTVA) and bp (NYSE: BP, LSE: BP.L) have announced their intention to establish a joint venture (JV) focused on producing crop-based biofuel feedstocks to support the growing demand for sustainable aviation fuel (SAF).
The envisioned partnership aims to address the global push for aviation decarbonization, driven by mandates and incentives in various regions. In the European Union, for instance, a SAF mandate takes effect in 2025, requiring aviation fuel to include 20% SAF by 2035 and 70% by 2050.
To meet these ambitious goals, Corteva and bp have signed a non-binding memorandum of understanding to scale up production and delivery of biofuel feedstocks. The JV aims to produce one million metric tons annually of SAF feedstock by the mid-2030s.
Corteva plans to work with farmers across North and South America and Europe to grow proprietary mustard seed, sunflower, and canola varieties tailored for SAF production. These crops, integral to large-scale agriculture, are expected to meet EU RED III criteria and align with U.S. Low Carbon Intensity policy incentives, creating new revenue opportunities for farmers while advancing sustainable practices.
“This partnership demonstrates agriculture’s role in driving decarbonization globally. By leveraging Corteva’s technology, scale, and strong grower relationships, we’re thrilled to partner with bp to help make the European airline industry more sustainable and provide farmers with additional income opportunities,” said Brook Cunningham, Chief Strategy Officer at Corteva.
Emma Delaney, bp’s Executive Vice President for Customers & Products, added, “This collaboration combines Corteva’s innovative agricultural expertise with bp’s refining and trading capabilities to deliver significant value and advance sustainable aviation.”
The two companies plan to finalize definitive agreements in 2025, with operations targeted to commence later that year.
