Bayer and Neste have finalized a commercial agreement to jointly scale Bayer’s newgold winter canola, targeting a major expansion of winter canola acreage across the Southern Great Plains of the United States as demand for renewable fuels accelerates.

 

The partnership is designed to strengthen supplies of lower-carbon-intensity oilseed feedstocks for renewable diesel and sustainable aviation fuel. Global demand for biofuels is estimated to nearly triple to approximately 40 billion gallons by 2040.

 

The deal also opens a new outlet for the high-protein meal left after oil extraction. The meal will be sold into livestock and poultry feed markets, including dairy and beef cattle, poultry and swine.

 

“In times of geopolitical tensions, the need for more energy security and resilience while decarbonizing the transportation sector leads to growing demand for renewable fuel. This agreement further underscores Bayer’s commitment to help scale biofuels production,” said Frank Terhorst, Head of Strategy and Sustainability for Bayer’s Crop Science division. 

 

“We see the Southern Great Plains as an untapped opportunity for winter canola. The launch of newgold winter canola will provide farmers with a profitable rotational crop with wheat and improve land utilization, while offering the opportunity to participate in a growing biofuels market.”

 

Bayer and Neste will build a newgold value-chain network with additional partners, aiming to accelerate winter canola adoption while giving farmers an additional market for their crop.

 

“Maximizing the contribution of novel types of raw materials to support growth in renewables requires open supply chain collaboration. By building robust value chains, we can turn agricultural innovations into scalable realities for growers and energy markets. 

 

"Through the Bayer newgold winter canola collaboration, we are establishing a value chain in one of Neste’s key markets and developing opportunities to increase farm yields and grower income. This renewable raw material can be scaled rapidly in the coming years, which can help meet increasing biofuels demand,” says Artturi Mikkola, Senior Vice President, Renewable Products Feedstock Sourcing and Trading at Neste.

 

Bayer plans to launch its newgold winter canola hybrids in fall 2027. The hybrids are being developed with winter-hardiness, TruFlex, Bayer’s second-generation Roundup Ready trait technology, and pod shatter resistance technology.

 

The company says the combination could deliver strong yield potential and higher oil content, while giving growers across the Southern Great Plains a new rotational and revenue opportunity alongside wheat.

 

TruFlex winter canola, marketed under the newgold seed brand, is being positioned as a flexible option that growers can integrate into their operations based on individual farm needs.

 

The agreement comes as biofuels gain importance in sectors where electrification remains difficult, including aviation, rail, heavy-duty equipment and marine transportation.

 

Biofuels can be produced from renewable organic feedstocks including corn, soy, canola and emerging intermediate oilseed crops such as winter canola.