Nuseed agrees 10-year offtake agreement with bp for carinata oil

In Australia, Nuseed Limited has entered into a long-term strategic offtake and market development agreement with BP Products North America Inc. that will see bp, or its affiliates, purchase Nuseed Carinata oil that it plans to process or sell into growing markets for the production of sustainable 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 (T&S) team to accelerate market adoption of Nuseed Carinata as a sustainable biofuel feedstock.
Under the agreement, bp will make payments to Nuseed, some of which are subject to meeting agreed milestones, that will assist in underwriting the cost of expanding and developing the Nuseed Carinata platform. bp and affiliates will purchase oil supplied by Nuseed for processing and sale into end markets. Nuseed is currently increasing commercial production in Argentina and planning expansion programs in South America and the United States. 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.