Corteva Inc. and bp have formed a 50:50 joint venture named Etlas that will produce oil from intermediate crops such as canola, mustard and sunflower for use in sustainable aviation fuel (SAF) and renewable diesel (RD). The partnership will target the production of one million metric tonnes of feedstock per year by the mid‑2030s, a volume that could generate more than 800,000 tonnes of biofuel.
Etlas will source its feedstock from existing farmland during the off‑crop season, a strategy that preserves food‑production acreage and improves soil health. Initial feedstock supply is slated to begin in 2027, and the venture’s production plan aligns with projected global demand for SAF, which is expected to reach 10 million tonnes by 2030, and RD, projected to hit 35 million tonnes by the same year.
The venture leverages Corteva’s seed‑technology expertise to develop high‑yield, low‑water‑use crop varieties, while bp contributes its refining and marketing capabilities to deliver the finished fuels to commercial transportation markets. The collaboration offers farmers a new revenue stream and a way to diversify income without expanding land use, addressing both sustainability and profitability concerns.
Corteva is preparing to split into two independent public companies in the second half of 2026, a move that could reshape the governance of Etlas. Meanwhile, bp has recently recalibrated its renewable‑energy strategy, scaling back some renewable investments while maintaining biofuels as a key “transition growth engine.” The joint venture therefore represents a concrete commitment to the biofuel market amid broader strategic shifts.
"As the aviation industry looks for reliable, sustainable and cost‑competitive sources of SAF, it is clear farmers have a critical role to play," said Ignacio Conti, CEO of Etlas. "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," added Philipp Schoelzel, senior vice president of bp’s biofuels growth. Corteva’s executive vice president of the seed business, Judd O'Connor, noted that the partnership “continues to deliver on our mission to help fuel the world and support farmers.”
Corteva’s Q4 2025 earnings, scheduled for release on February 3 2026, will provide further insight into the company’s financial health as it moves toward the split. bp’s recent financial reports show a modest decline in renewable‑energy investment, but the company’s continued focus on biofuels signals a long‑term commitment to the sector.
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