Corteva Announces A Collaboration With Bp On The Companies' Shared Intent To Form A Crop-Based Biofuel Feedstock Joint Venture; The JV Envisaged By Corteva And Bp Would Produce And Deliver Crop-Based Biofuel Feedstocks To Help Meet The Anticipated Growth In Demand For 'Sustainable Aviation Fuel'

Corteva Inc. (NYSE:CTVA) announced today a collaboration with bp (NYSE:BP, LSE: BP.L))) on the companies' shared intent to form a crop-based biofuel feedstock joint venture (JV).

The JV envisaged by Corteva and bp would produce and deliver crop-based biofuel feedstocks to help meet the anticipated growth in demand for 'sustainable aviation fuel' (SAF).

A number of countries around the world have, or are in the process of implementing, mandates or tax incentives to promote the decarbonization of the aviation sector. In the EU a SAF mandate begins in 2025 that will require fuel uplift at EU airports to contain at least 20% SAF by 2035 and 70% by 2050.

To help meet this demand, Corteva and bp have executed a non-binding memorandum of understanding, with the intent of forming a JV that would aim to progressively scale up volume, reaching delivery of one million metric tons per year of biofuel feedstocks for SAF production by the mid-2030s.

Corteva plans to contract with farmers in North and South America, and Europe, to grow proprietary Corteva mustard seed, sunflower and canola feedstocks well-suited for SAF production. These crops are integral to large scale agriculture around the world. The JV would aim to introduce new cropping systems to produce oil that meets EU RED III criteria, and qualifies for US Low Carbon Intensity policy incentives, while creating a new revenue stream for farmers.