MOSCOW (MRC) -- Nuseed and BP Products North America Inc., have entered into a long-term strategic offtake and market development agreement, that will see bp, or its affiliates, purchase Nuseed Carinata oil to process or sell into growing markets for the production of sustainable biofuels, said the company.
Nuseed Carinata is a non-food cover crop that can be used to produce low-carbon biofuel feedstock that is independently certified, sustainable and scalable. Increased global demand for biofuels is being driven by the need to access sustainable sources of energy to help achieve global GHG reduction targets.
"Sustainable biofuels have a vital role to play in decarbonizing transport, said Carol Howle, executive vice president, trading & shipping at bp. By working with Nuseed, we can use their sustainable feedstock to help decarbonize challenging transportation sectors such as aviation, supporting the production of sustainable aviation fuel and other biofuels."
The agreement is for an initial 10-year term and will see Nuseed continue to develop and expand its existing network of growers, channel and supply chain partners to deliver Carinata oil to bp or its affiliates, with key steps of crop production independently audited and certified. The Carinata oil will be processed by bp or affiliates through its bio refining footprint and also sold into growing markets for the production of sustainable biofuels, utilizing the global reach of bp’s trading and shipping team to accelerate market adoption of Nuseed Carinata as a sustainable biofuel feedstock.
Nuseed is currently increasing commercial production in Argentina and planning expansion programs in South America and the U.S. Initial research and market development programs are also underway in Europe and Australia. bp expects to initially target low-carbon biofuel markets in Europe and North America.
bp is already an active participant in the biofuels supply chain. bp produces renewable diesel from biomass-based feedstocks, including in the U.S. where it recently announced a project to expand renewable diesel production capability to an estimated 2.6 MMbpy in 2022. Globally, the bp group aims to more than double its bioenergy portfolio by 2025 – and to quadruple it by 2030 – compared to 2019.
As MRC reported before, bp and Lukoil want to quit their Iraqi energy projects due to the current investment environment, the country's oil minister said in July, 2021, as OPEC's second biggest producer faces an exodus of international oil companies that want to exit unattractive contracts. Lukoil wants to sell its stake in West Qurna 2 to Chinese companies.
We remind that Russian energy major Lukoil (Moscow) is studying several potential petrochemical projects in Russia and Bulgaria, with investment decisions expected to be made on two of them in 2021.
bp is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. bp’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, bpP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.