Neste and Bayer to collaborate on developing novel vegetable oils from regenerative agriculture concepts
Neste Corporation, Press Release, 8 January 2025 at 3 p.m. (EET)
Neste and Bayer, a global enterprise with core competencies in the life science fields of health care and agriculture, have signed a memorandum of understanding aimed at developing a winter canola ecosystem in the U.S, including identifying partners and developing the value chain together, and scaling winter canola production as a raw material for renewable products.
While having a strong focus on waste and residue raw materials, Neste continues to actively explore and develop other types of renewable raw materials, such as novel vegetable oils produced by regenerative farming practices. Regenerative farming practices aim to trap carbon in healthier soils, promote biodiversity and reduce emissions from agriculture, while increasing farm productivity.
Neste is working together with value chain partners in several regions globally, collaborations varying from smaller field trials studying sustainability benefits of selected concepts to more mature projects using different regenerative agriculture practices. The aim is to identify the most promising concepts that can be scaled up and can play an important role in diversifying and growing Neste’s raw materials pool for renewable products.
“This collaboration with Bayer aligns with Neste’s efforts to develop regenerative agriculture concepts,” says Artturi Mikkola, Senior Vice President, Feedstock Sourcing & Trading at Neste. “Used as a new alternative rotational crop, winter canola fits well to our novel vegetable oil concepts. Winter canola not only has the potential to result in lower carbon intensity raw material, but can also bring additional environmental benefits to cropping systems and provide farmers with new income opportunities.”
“Renewable fuels are playing an important role in the decarbonization of transportation and energy while global targets continue to shape biofuel markets and accelerate demand for biomass-based feedstocks going forward,” said Frank Terhorst, Head of Strategy & Sustainability for Bayer’s Crop Science Division. “We are committed to supporting farmers’ ability to deliver low-carbon feedstocks on demand, through investments in new crops like winter canola and advancement in sustainable cropping systems.”
Winter canola, used as a rotational crop in combination with regenerative agriculture practices, can improve soil health and sequester carbon, contributing to more sustainable farming. The resulting lower carbon intensity raw material can then be used to produce renewable fuels like sustainable aviation fuel and renewable diesel, that can significantly reduce greenhouse gas emissions over the life cycle compared to fossil fuels.
Neste Corporation
Hanna Maula
Senior Vice President, Communications, Sustainability and Public Affairs
Further information: Please contact Neste's media service, tel. +358 800 94025 / media@neste.com (weekdays from 8.30 a.m. to 4.00 p.m. EET). Please subscribe to Neste’s releases at https://www.neste.com/media/subscribe.
Neste in brief
Neste (NESTE, Nasdaq Helsinki) uses science and innovative technology to transform waste and other resources into renewable fuels and circular raw materials. The company creates solutions for mitigating climate change and accelerating a shift to a circular economy. Being the world’s leading producer of sustainable aviation fuel (SAF) and renewable diesel and a forerunner in developing renewable and circular feedstock solutions for polymers and chemicals, the company aims to help its customers to reduce their greenhouse gas emissions by at least 20 million tons annually by 2030.
The company’s ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe. Neste is committed to reaching carbon-neutral production by 2035, and will reduce the carbon emission intensity of sold products by 50% by 2040. Neste has also set high standards for biodiversity, human rights and the supply chain. The company has consistently been included in the CDP and the DJSI lists of the world’s most sustainable companies. In 2023, Neste's revenue stood at EUR 22.9 billion. Read more: neste.com
About Bayer
Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. In line with its mission, “Health for all, Hunger for none,” the company’s products and services are designed to help people and the planet thrive by supporting efforts to master the major challenges presented by a growing and aging global population. Bayer is committed to driving sustainable development and generating a positive impact with its businesses. At the same time, the Group aims to increase its earning power and create value through innovation and growth. The Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2023, the Group employed around 100,000 people and had sales of 47.6 billion euros. R&D expenses before special items amounted to 5.8 billion euros. For more information, go to www.bayer.com.
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