INDIANAPOLIS, Nov. 18,
2024 /PRNewswire/ -- Corteva Inc. (NYSE: CTVA)
announced today a collaboration with bp (NYSE: BP, LSE: BP.L) on
the companies' shared intent to form a crop-based biofuel feedstock
joint venture (JV).
The JV envisaged by Corteva and bp would produce and deliver
crop-based biofuel feedstocks to help meet the anticipated growth
in demand for 'sustainable aviation fuel' (SAF).
A number of countries around the world have, or are in the
process of implementing, mandates or tax incentives to promote the
decarbonization of the aviation sector. In the EU a SAF mandate
begins in 2025 that will require fuel uplift at EU airports to
contain at least 20% SAF by 2035 and 70% by 2050.
To help meet this demand, Corteva and bp have executed a
non-binding memorandum of understanding, with the intent of forming
a JV that would aim to progressively scale up volume, reaching
delivery of one million metric tons per year of biofuel
feedstocks for SAF production by the mid-2030s.
Corteva plans to contract with farmers in North and South America, and Europe, to grow proprietary Corteva mustard
seed, sunflower and canola feedstocks well-suited for SAF
production. These crops are integral to large scale agriculture
around the world. The JV would aim to introduce new cropping
systems to produce oil that meets EU RED III criteria, and
qualifies for US Low Carbon Intensity policy incentives, while
creating a new revenue stream for farmers.
"This partnership is proof positive that agriculture can
continue to be part of the solution to the world's decarbonization
opportunities, including by leveraging Corteva's technology, global
scale, and unique grower relationships. We are excited at the
prospect of partnering with bp to help the European airline
industry become more sustainable while giving farmers a new source
of income," said Corteva Chief Strategy Officer, Brook Cunningham.
"We see great potential in a partnership with Corteva -
together, we are well positioned to deliver value through
leveraging Corteva's technology and grower relationships and bp's
refining and trading capabilities," said Emma Delaney, executive vice president,
customers & products, bp.
The two companies anticipate finalizing definitive agreements in
2025 with the target operational date for the JV later in the
year.
About Corteva Agriscience
Corteva, Inc. (NYSE: CTVA) is a global pure-play agriculture
company that combines industry-leading innovation, high-touch
customer engagement and operational execution to profitably deliver
solutions for the world's most pressing agriculture challenges.
Corteva generates advantaged market preference through its unique
distribution strategy, together with its balanced and globally
diverse mix of seed, crop protection, and digital products and
services. With some of the most recognized brands in agriculture
and a technology pipeline well positioned to drive growth, the
company is committed to maximizing productivity for farmers, while
working with stakeholders throughout the food system as it fulfills
its promise to enrich the lives of those who produce and those who
consume, ensuring progress for generations to come. More
information can be found at www.corteva.com.
Cautionary Statement on Forward-Looking Statements
This release contains certain estimates and forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended, which are intended to be covered by the
safe harbor provisions for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995, and may be
identified by their use of words like "plans," "expects," "will,"
"anticipates," "believes," "intends," or other words of similar
meaning. All statements that address expectations or projections
about the future, including statements about the company's
expectations related to regulatory approvals, product development,
product offerings and product, financial or sustainability
performance are forward-looking statements. The company disclaims
and does not undertake any obligation to update or revise any
forward-looking statement, except as required by applicable law. A
detailed discussion of some of the significant risks and
uncertainties which may cause results and events to differ
materially from such forward-looking statements or other estimates
is included in the "Risk Factors" section of the company's Annual
Report on Form 10-K, and as modified by subsequent reports on Form
10-Q and Current Reports on Form 8-K.
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SOURCE Corteva, Inc.