Nufarm Limited (ASX:NUF) has strengthened its strategic partnership with bp, extending a long-term offtake agreement for its Carinata biofuel feedstock to 2050 as it looks to scale production and meet rising demand for sustainable aviation fuel (SAF) and renewable diesel (RD).
The updated agreement builds on the original 2022 deal and establishes a longer-term framework to support the expansion of Carinata, a non-food oilseed crop used as a biofuel feedstock.
Under the revised terms, bp will retain access to purchase oil from Nufarm’s Carinata Production System, while the extended marketing and offtake period is expected to underpin supply growth through to mid-century.
The agreement also introduces a milestone-based funding model, designed to support continued investment in Carinata seed technology. This is aimed at improving crop performance and developing new varieties for growers, while maintaining a disciplined, capital-light approach for Nufarm.
Nufarm said the deal supports expansion of Carinata oil supply through an established value chain spanning growers, supply channels and biofuel producers, with a focus on capital efficiency and scalable growth.
“The agreement with bp supports the growth pathway for Nufarm Carinata by anchoring long‑term demand with a global energy major," Nufarm CEO Rico Christensen said.
“Demand for biofuels is growing rapidly as hard to electrify industries including aviation and heavy transport look for abatement solutions. Demand is running well ahead of supply as government mandates are requiring industry to meet interim emissions targets by 2030 and net zero targets by 2050."
About Carinata
Carinata is grown as a non-food crop on existing farmland, typically as part of crop rotation systems, providing growers with diversification benefits while contributing to biofuel markets.
The crop is independently certified by the Roundtable of Sustainable Biomaterials (RSB), and fuel derived from Carinata oil is expected to deliver significant lifecycle greenhouse gas emissions reductions compared to fossil fuel alternatives.
Since entering the original agreement with bp, Nufarm has expanded its Carinata program beyond Argentina into Brazil, Paraguay and Uruguay, alongside a pilot program in Australia supported by its existing grower and supply chain network.
The company said the expanded partnership positions Carinata for further scale as global demand for lower-emission fuels continues to grow.