Corteva unveils new hybrid seed to produce renewable fuels
Indianapolis-based Corteva Agriscience (NYSE: CTVA) is collaborating with agribusiness company Bunge Ltd. (NYSE: BG) and Chevron Corp. (NYSE: CVX) to produce renewable fuels from canola crops. They unveiled a proprietary winter canola hybrid, developed by Corteva, that can be grown as a cover crop, after soybeans are harvested.
The partners say it can also be planted after a cotton crop, so they intend to market the new seed to farmers in the southern U.S.
They say the crop creates a new revenue stream for farmers.
“We’re pleased to work with Bunge and Chevron to bring a new option in the southern U.S. that will deliver solutions for farmers to increase productivity and sustainability on their acres, as well as contribute to the need for renewable and less carbon-intensive fuel options,” said Corteva Agriscience CEO Chuck Magro.
Bunge Chevron Ag Renewables, which is a joint venture between Bunge and Chevron, plans to contract with farmers to purchase the harvested winter canola crop and use the oil to produce renewable fuel.
“Rotational cover crops play a key role in our strategy to continue to develop next generation lower carbon feedstocks. This is another step in our commitment to creating clear paths to support the decarbonization of the industry,” said Greg Heckman, Bunge CEO.
The partners say in addition to providing farmers an opportunity for new income opportunity, adding winter canola to a rotation provides a cover crop which can enhance soil health.
A pilot program is expected to be conducted in the 2022-23 growing season.