ADM and Syngenta Group have signed a memorandum of understanding toward researching and commercializing low-carbon oilseeds. The partnership will work to meet an increased demand for biofuels and other sustainably-sourced products.
Demand for biofuels, or renewable fuel alternatives made from feedstocks such as vegetable and seed oils, is expected to grow by 22% between 2022 and 2027. ADM, an agricultural processing company, and Syngenta, an agricultural technology company, plan to significantly scale up production of low-carbon oilseeds through the new partnership.
Syngenta’s biotechnologies and seed treatments will help reduce the carbon intensity of crops, while ADM will contribute logistical support for growers and customers.
“Transforming agriculture will be fueled by innovation, but it must be achieved at scale,” said Daniel Vennard, Syngenta’s chief sustainability officer. “This cannot be done alone. The whole food and agriculture system needs to work in partnership with farmers at the center. Our collaboration with ADM is a perfect example of our continued commitment and we are excited to see what we will do together and how we can inspire the industry.”
The partnership will also include commercialization of low carbon-intensive oil seeds, such as Camelina, that are usually grown in a fallow period a crop rotation, in order to generate a greater supply. These efforts should work to address the expected supply crunch that biofuels may face in the coming years, according to the International Energy Agency.
Biofuels, such as sustainable aviation fuel (SAF) and green ethanol, present a solution for decarbonizing transportation methods that are further away from widespread electrification, including air and maritime transport. Maersk and Amazon recently agreed to a container shipping deal that uses biodiesel and green ethanol. Meanwhile, multiple airline companies have signed deals to purchase SAF in the coming years as it becomes more widely available.
These fuels may be key to decarbonizing hard-to-abate transportation sectors, but only if the agricultural resources are available to make the fuels. Further, the feedstocks required for fuel production must be sustainably sourced, or carbon emissions reductions may be offset by emissions caused in production.
ADM and Syngenta’s agreement marks continued effort within the sector to ensure that biofuel production increases significantly without escalating environmental impact.
