Energy giant bp and global agriculture technology company Corteva announced the launch of Etlas, a new 50:50 joint venture aimed at producing seed-based feedstock for biofuels such as sustainable aviation fuel (SAF) and renewable diesel (RD).
According to the companies, the new platform aims to provide a reliable and scalable feedstock source as demand for biofuels is expected to grow rapidly over the next few years, with SAF demand anticipated to scale from approximately 1 million tonnes in 2024 to as much as 10 million tonnes by 2030, and for RD demand to double over the same period to 35 million tonnes.
The new platform will produce oil from crops such as sunflower, mustard and canola, to be used in the production of biofuels, combining Corteva’s expertise in seed technology to develop crops ideally suited to produce SAF and RD, and bp’s expertise in refining and marketing fuel for the commercial transportation market. Etlas will be led by Corteva’s Global Business Development Director, Ignacio Conti, as CEO, and Gaurav Sonar, Vice President of Novel Feedstocks at bp as Chair of the Board of Directors.
Conti said:
“As the aviation industry looks for reliable, sustainable and cost-competitive sources of SAF, it is clear farmers have a critical role to play. Etlas brings together global leaders in agriculture innovation and energy production to harness this demand by leveraging technological expertise and trusted relationships with farmers around the world to help scale production and boost supply while offering farmers new revenue streams.”
According to bp and Corteva, the new platform aims to begin supplying feedstock for biofuels in 2027, and to produce one million metric tonnes of feedstock per year by the mid-2030s, which could produce over 800 thousand tonnes of biofuel.
The companies added that the plants used to generate the feedstock will not compete for land with food crops, as the feedstock will be harvested from crops that are grown on existing cropland, between main food cropping seasons. The companies cited additional benefits from the use of such intermediate crops, including improved soil health, and additional revenue streams for farmers.
Philipp Schoelzel, Senior Vice President, Biofuels Growth at bp said:
“This capital light joint venture creates optionality in our biofuels value chain, strengthening our position and helping deliver attractive returns.”
Judd O’Connor, Executive Vice President of Corteva’s seed business unit added:
“By helping found Etlas, Corteva continues to deliver on two critical parts of our mission: to help fuel the world and to support farmers. Agriculture is part of the solution, and we are excited to see Etlas come to life.”
