Bayer and Neste Reach Commercial Agreement to Scale newgold Winter Canola for Biofuel Production
Bayer and Neste have finalized a commercial agreement aimed at accelerating the development and expansion of Bayer’s newgold® winter canola as a feedstock for the rapidly growing renewable fuels market. The collaboration brings together Bayer’s agricultural innovation and Neste’s expertise in renewable fuel production to establish a stronger supply chain for lower-carbon-intensity oilseed feedstocks in the United States.
The agreement is expected to support a significant expansion of winter canola acreage across the Southern Great Plains, an agricultural region that Bayer believes offers considerable potential for growing intermediate oilseed crops. By increasing winter canola production in the region, the companies aim to provide farmers with an additional crop option while helping strengthen the availability of renewable raw materials needed to produce fuels such as renewable diesel and sustainable aviation fuel (SAF).
Demand for renewable fuels is projected to increase substantially in the coming years. Industry estimates indicate that global demand for biofuels could nearly triple, reaching approximately 40 billion gallons by 2040. As governments, businesses and transportation operators work to reduce greenhouse gas emissions, renewable fuels are expected to play an increasingly important role in sectors where direct electrification can be challenging.
Winter canola could contribute to this transition by providing an additional source of renewable oil. At the same time, producing the crop can generate valuable high-protein meal that can be marketed as animal feed. The meal could provide an additional source of protein for dairy and beef cattle, poultry and swine producers, creating another potential revenue stream from winter canola production.
Expanding Winter Canola in the Southern Great Plains
For Bayer, the Southern Great Plains represents an important opportunity to expand winter canola production while providing growers with another rotational crop that can complement existing farming systems, particularly wheat.
Frank Terhorst, Head of Strategy and Sustainability for Bayer’s Crop Science division, said the agreement reflects the company’s focus on supporting the development of renewable fuel supply chains while helping farmers benefit from emerging markets.
According to Bayer, winter canola can offer farmers a potentially profitable rotational crop that improves the utilization of agricultural land. Integrating the crop into existing rotations could also provide growers with greater flexibility in managing their operations and accessing new markets.
The introduction of newgold® winter canola is therefore positioned not simply as a seed launch, but as part of a broader effort to establish a functioning agricultural value chain connecting growers with renewable fuel markets.
Bayer and Neste plan to establish a newgold® network involving additional partners throughout the value chain. The network is intended to support winter canola expansion, strengthen market access and provide farmers with an additional outlet for their production.
Building a Renewable Feedstock Value Chain
Neste sees collaboration across the agricultural and energy industries as an important element in scaling new feedstocks for renewable fuels. Developing a reliable supply chain requires coordination among seed developers, growers, agricultural businesses, processors and renewable fuel producers.
Artturi Mikkola, Senior Vice President of Renewable Products Feedstock Sourcing and Trading at Neste, emphasized the importance of open collaboration in developing new sources of renewable raw materials.
The partnership with Bayer will allow Neste to establish a value chain in one of its important markets while exploring opportunities to increase agricultural productivity and grower income. The companies believe winter canola has the potential to be scaled relatively quickly, creating additional feedstock availability as renewable fuel demand continues to rise.
The collaboration also illustrates the growing connection between agricultural innovation and the energy transition. Crop breeding and farming technologies can help create new feedstock opportunities, while renewable fuel producers can provide markets for agricultural commodities that may otherwise have limited outlets.
Newgold Hybrids Planned for Fall 2027
Bayer plans to launch its newgold® winter canola hybrids in fall 2027. The hybrids are being developed with a combination of traits intended to help farmers manage the specific challenges associated with winter canola production while supporting yield and oil-content potential.
The new hybrids will feature winter-hardiness, which is important for crops planted ahead of the winter season. They will also incorporate TruFlex®, Bayer’s second-generation Roundup Ready trait technology, as well as pod shatter resistance technology.
These characteristics are designed to give farmers greater flexibility and support crop performance throughout the growing season. Bayer expects the combination of traits to offer strong potential for yield performance and higher oil content, two characteristics that are particularly relevant when the crop is being developed as a feedstock for renewable fuels.
TruFlex winter canola will be marketed under the newgold® seed brand. Bayer intends for the product to provide Southern Great Plains growers with another potential source of farm income while allowing individual producers to determine how winter canola fits into their existing crop rotations and management systems.
Supporting the Transportation Energy Transition
The partnership comes as the transportation sector continues to explore multiple pathways for reducing emissions. While electrification is expanding across passenger vehicles and other applications, direct electric solutions are not equally practical for every transportation segment.
Aviation, long-haul trucking, rail, marine transportation and certain heavy-duty equipment applications can present significant challenges for full electrification because of energy-density, range, infrastructure and operational requirements. Renewable fuels can provide an alternative or complementary pathway for reducing the carbon intensity of these sectors.
Biofuels can be produced from renewable organic materials, including corn, soybeans, canola and other oilseed crops. Intermediate crops such as winter canola can potentially broaden the agricultural feedstock base while creating new opportunities for farmers.
Bayer recently highlighted its biofuels platform at an investor day in Huxley, Iowa, where the company presented its developing portfolio of intermediate biofuel crops. The portfolio includes camelina, winter canola and CoverCress™.
These crops are part of Bayer’s broader strategy to explore agricultural systems that can produce additional renewable feedstocks while improving the productivity and economic potential of farmland.
Connecting Farmers With the Renewable Fuels Economy
The Bayer-Neste agreement demonstrates how the renewable fuels market is increasingly influencing agricultural innovation. As demand for renewable diesel and sustainable aviation fuel grows, the availability of suitable feedstocks will become an increasingly important factor in expanding production.
For farmers in the Southern Great Plains, winter canola could provide an opportunity to participate in this emerging market without necessarily replacing their existing crops. Its potential role in rotations with wheat may allow growers to diversify production and make greater use of available farmland.
For Bayer, the initiative creates an opportunity to commercialize new agricultural technology while developing markets for crops specifically suited to renewable fuel applications. For Neste, the collaboration provides a pathway toward expanding its renewable feedstock portfolio and strengthening supply chains in the United States.
The planned 2027 launch of newgold® winter canola will be an important milestone in that effort. As the companies build their network of value-chain partners, the success of the initiative will depend on developing reliable production systems, strong grower participation and dependable markets for both canola oil and high-protein meal.
Ultimately, Bayer and Neste view winter canola as more than another oilseed crop. They see it as a potential link between agriculture and the global transition toward lower-carbon transportation fuels. By combining seed innovation, farming expertise and renewable fuel demand, the companies aim to create a scalable model that can benefit growers while contributing to the expanding supply of renewable feedstocks for the biofuels industry.
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