Bayer, bp Partner To Scale Camelina For Renewable Diesel And SAF Markets

Bayer and bp will jointly commercialize camelina in North America for biodiesel, renewable diesel and sustainable aviation fuel production.
Demand for biodiesel, renewable diesel and SAF is projected to nearly triple to 40 billion gallons by 2040.
Camelina can grow between crop seasons, in rotations, or on underused land, creating new farmer revenue without directly competing with food production.

North America is set to become the launch market for a new biofuels feedstock push, as Bayer and bp form a long-term strategic alliance to scale camelina for lower-carbon fuels.

Commercialization will take place under Bayer’s newgold brand. The crop is intended for use in biodiesel, renewable diesel and sustainable aviation fuel. For executives and investors tracking transport decarbonization, the partnership brings together two critical parts of the value chain: agricultural scale and fuel market access.

bp will contribute expertise in fuels and refining. Bayer will bring seed technology, crop breeding capabilities and access to its farmer customer base. The companies aim to create a more reliable market for intermediate oilseeds, at a time when demand for low-carbon liquid fuels is rising sharply.

The fuel market is the core driver. Demand for biodiesel, renewable diesel and sustainable aviation fuel is estimated to increase almost threefold to 40 billion gallons by 2040. That growth creates a feedstock challenge, especially as aviation, marine, rail and heavy-duty transport remain harder to electrify.

Camelina Offers Farmers A Flexible Revenue Crop

Camelina is being positioned as more than a fuel crop. Bayer and bp are framing it as an intermediate crop that can add value between main seasons, fit into rotations, or make idle and marginal acres more productive.

“This alliance will help us to connect the value chain necessary to bring camelina to market and provides our farmer customers greater market certainty as they consider camelina on their farm,” said Frank Terhorst, head of strategy and sustainability for Bayer’s Crop Science division. “We are utilizing our industry leading breeding program to enhance the crop, and its untapped potential globally to help meet the needs of this growing market. We see this as a win for our customers and their farms, as it creates potential new revenue streams, but also a win for the renewable fuels market.”

Frank Terhorst, head of strategy and sustainability for Bayer’s Crop Science division

Camelina’s appeal lies in its agronomic flexibility. The crop can grow in both spring and winter. Its winter hardiness, drought tolerance and pod shatter resistance make it useful across varied conditions. It also requires lower inputs than many conventional crops.

That profile matters for policy and ESG scrutiny. Biofuel growth has often raised concerns around land use, food competition and feedstock availability. Bayer and bp are seeking to address those concerns by focusing on land that is idle, fallow, underutilized, or available between traditional crop rotations.

Strategic Value For Renewable Fuel Markets

The alliance follows Bayer’s acquisition of camelina assets, announced in January 2025. Bayer is now ramping up production ahead of a full-scale launch. Testing of both long-season and short-season biotypes is underway.

The company has already introduced newgold camelina in the Northern Plains of the United States. It has also launched in Southern Saskatchewan and Southern Alberta in Canada. These regions offer a practical test case for scaling the crop across varied climates and farming systems.

For bp, the deal fits into a broader effort to secure lower-carbon feedstocks that can serve existing and future refining pathways.

Philipp Schoelzel, senior vice president biofuels growth at bp, said: “This collaboration represents bp at its best. Working with trusted partners with complementary capabilities to develop products customers want and need, while delivering value for our shareholders.”

The shareholder reference is important. Biofuels remain a capital-intensive growth market. Investors will be watching whether partnerships like this can reduce feedstock risk, improve supply certainty and support stronger margins across renewable fuel production.

What Executives And Investors Should Watch

The Bayer-bp alliance places farmers at the center of the renewable fuels economy. That is both a commercial opportunity and a governance test.

Growers could use camelina to create new income from acres that may otherwise sit idle. Refiners could gain access to a more diverse feedstock base. For airlines, logistics groups and industrial transport buyers, it may help expand the supply of lower-carbon fuels.

Yet scale will decide the outcome. The market will need reliable agronomy, farmer adoption, predictable offtake, and policy support for low-carbon fuel pathways. Certification and lifecycle emissions accounting will also be critical, especially for SAF buyers facing climate disclosure pressure.

The partnership reflects a wider shift in climate strategy. Decarbonizing transport will not come from one technology alone. Electrification, efficiency, hydrogen, renewable fuels and agricultural innovation will all compete for capital.

For now, Bayer and bp are betting that camelina can turn underused land and off-season windows into fuel market value. If the model works in North America, it could offer a template for expanding low-carbon feedstocks in other agricultural regions.