BP p.l.c. and Corteva Inc. have created a 50:50 joint venture, Etlas, to produce oil from crops such as canola, mustard and sunflower for use in sustainable aviation fuel (SAF) and renewable diesel (RD). The partnership combines Corteva’s seed‑technology expertise with BP’s refining and marketing capabilities, creating a capital‑light pathway that can scale to meet the projected 10‑million‑tonne SAF demand and 35‑million‑tonne RD demand by 2030.
Etlas plans to supply one million metric tonnes of feedstock per year by the mid‑2030s, enough to generate over 800,000 tonnes of biofuel. Initial production will begin in 2027, with crops grown on existing cropland during off‑season periods to avoid land‑use competition. This approach aligns with EU RED III criteria and US Low Carbon Intensity incentives, positioning the venture to meet regulatory mandates while protecting farmers’ land use.
Corteva’s CEO, Judd O’Connor, said the partnership “continues to deliver on two critical parts of our mission: to help fuel the world and to support farmers.” BP’s senior vice president of biofuels growth, Philipp Schoelzel, added that the joint venture “creates optionality in our biofuels value chain, strengthening our position and helping deliver attractive returns.” Etlas CEO Ignacio Conti highlighted the farmer benefit, noting that the venture “brings together global leaders in agriculture innovation and energy production to harness this demand while offering farmers new revenue streams.”
The venture is a strategic pivot for both companies. For BP, it expands its low‑carbon portfolio and provides a new source of feedstock that can be integrated into existing refining operations, reducing reliance on imported oil and aligning with its net‑zero targets. For Corteva, the partnership offers a new revenue stream as the company prepares to spin off its seeds business in 2026 and focus on crop protection. The joint venture also positions Corteva to leverage its seed‑technology platform to secure long‑term contracts with farmers, creating a stable supply chain for the growing SAF and RD markets.
The market reaction to the announcement was muted, with investors focusing on the long‑term strategic fit rather than short‑term financial metrics. The partnership is expected to generate significant value as the aviation and transportation sectors accelerate their decarbonization plans, and it provides a scalable, low‑capital model that can be replicated across regions.
The joint venture’s success will hinge on several factors: the ability to secure consistent crop yields, the scalability of the oil extraction process, and the alignment of regulatory incentives with production timelines. If Etlas can deliver on its feedstock targets, it will help BP and Corteva capture a share of the rapidly expanding SAF and RD markets, while also supporting farmers with additional income streams and improved soil health practices.
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