- Nufarm (NUF) signs a purchase agreement for its carinata oil with BP Products North America through the formers wholly-owned subsidiary, Nuseed
- The 10-year agreement will reportedly allow Nuseed to accelerate the expansion its Nuseed Carinata sustainable production program
- The agreement will see BP or its affiliates, purchase Nuseed carinata oil it plans to process or sell into growing markets for biofuel production
- Nuseed carinata is a non-food cover crop that can be used to produce low-carbon biofuel
- Nufarm last traded at $4.45 on January 31
Nufarm (NUF) has signed a purchase agreement for its carinata oil with BP Products North America.
The deal is through the Australian company’s wholly-owned subsidiary, Nuseed Limited.
The agreement will see BP or its affiliates, purchase Nuseed carinata oil that it plans to process or sell into growing markets for the production of sustainable biofuels.
Nuseed carinata is a non-food cover crop that can be used to produce low-carbon biofuel
feedstock that is independently certified, sustainable and scalable.
Nufarm made the deal amid an increase in global demand for biofuels, driven by the need to access sources of energy.
“Nuseed Carinata is a great example of Nufarm’s approach to developing innovative solutions to support sustainable agriculture,” CEO Greg Hunt said.
“This agreement between Nuseed and bp is validation of Nuseed Carinata’s potential as an advanced, non-food agricultural feedstock for biofuel production. As a leading global inputs provider to agriculture, Nufarm is well positioned to help drive and support the expansion of Nuseed’s Carinata platform.”
Nuseed’s Carinata is a “proven, drop-in solution for biofuel processors that’s ready to scale globally on existing farmland between main food crops,” according to the company.
The arrangement is for a 10-year period, and Nuseed will continue to build and extend its existing network of farmers, channel, and supply chain partners to deliver Carinata oil to BP or its affiliates, with essential crop production phases independently validated and approved.
The Carinata oil will be processed by BP or its affiliates and sold into developing markets for the manufacture of sustainable biofuels, leveraging BP’s Trading and Shipping team’s worldwide reach to expedite market acceptance of Nuseed Carinata as a sustainable biofuel feedstock.
Nufarm last traded at $4.45 on January 31.