Bayer and Neste close commercial agreement to jointly scale newgold® winter canola for biofuels production
Commitment aims to support the growth of winter canola in the Southern Great Plains of the U.S., as a feedstock for renewable diesel and sustainable aviation fuel
Monheim, Germany/St. Louis, USA, September 9, 2026 – Bayer and Neste, the world’s leading producer of renewable diesel and sustainable aviation fuel, have finalized a commercial agreement to jointly scale Bayer’s newgold® winter canola.
The collaboration will enable Bayer to significantly expand acres of winter canola in the Southern Great Plains of the US, strengthening the oilseed supply potential of lower-carbon-intensity feedstocks to meet the growing global demand for biofuels such as renewable diesel and sustainable aviation fuel, which is estimated to increase almost threefold reaching approximately 40 billion gallons by 2040.1,2 The high protein meal from the winter canola grain will be sold into the feed market, offering additional feed sources for dairy and beef cattle, poultry and swine markets.
“In times of geopolitical tensions, the need for more energy security and resilience while decarbonizing the transportation sector leads to growing demand for renewable fuel. This agreement further underscores Bayer’s commitment to help scale biofuels production,” said Frank Terhorst, Head of Strategy and Sustainability for Bayer’s Crop Science division. “We see the Southern Great Plains as an untapped opportunity for winter canola. The launch of newgold® winter canola will provide farmers with a profitable rotational crop with wheat and improve land utilization, while offering the opportunity to participate in a growing biofuels market.”
Bayer and Neste are establishing a newgold® network with additional value chain partners, to support the expansion of winter canola and ensure an additional market for farmers.
“Maximizing the contribution of novel types of raw materials to support growth in renewables requires open supply chain collaboration. By building robust value chains, we can turn agricultural innovations into scalable realities for growers and energy markets. Through the Bayer newgold® winter canola collaboration, we are establishing a value chain in one of Neste’s key markets and developing opportunities to increase farm yields and grower income. This renewable raw material can be scaled rapidly in the coming years, which can help meet increasing biofuels demand,” says Artturi Mikkola, Senior Vice President, Renewable Products Feedstock Sourcing and Trading at Neste.
Bayer aims to launch newgold® winter canola hybrids in the fall of 2027. These hybrids offer farmers several benefits, including winter-hardiness, TruFlex®, Bayer’s second-generation Roundup Ready trait technology, and pod shatter resistance technology. Together, these advancements can deliver strong potential for yield performance and higher oil content. TruFlex winter canola, sold under the newgold® seed brand, will be designed with the goal of acting as a new profit opportunity for the Southern Great Plains, giving growers the flexibility to decide how and where it fits best in their operation.
Biofuels can play a key role in helping the transportation sector in its energy transition since electrification may not be feasible in all transportation systems like aviation, rail, heavy duty equipment or marine. Biofuels can be produced from renewable organic materials like corn, soy, canola and other intermediate oilseed crops, such as winter canola. Bayer recently presented its biofuels platform at its investor day in Huxley, IA, where it highlighted its emergent, but leading portfolio of intermediate biofuel crops, including camelina, winter canola and CoverCress™.
Notes
1 U.S. Energy Information Administration and Bayer internal estimates
2 McKinsey and Bayer internal estimates.
About Bayer
Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. In line with its mission, “Health for all, Hunger for none,” the company’s products and services are designed to help people and the planet thrive by supporting efforts to master the major challenges presented by a growing and aging global population. Bayer is committed to driving sustainable development and generating a positive impact with its businesses. At the same time, the Group aims to increase its earning power and create value through innovation and growth. The Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2025, the Group employed around 88,000 people and had sales of 45.6 billion euros. R&D expenses amounted to 5.8 billion euros. For more information, go to www.bayer.com.
About Neste
Neste (NESTE, Nasdaq Helsinki) is the world's leading producer of renewable diesel and sustainable aviation fuel (SAF), with production on three continents. The company’s renewables production capacity is expected to reach 6.8 million tons annually in 2027. Neste also produces high-quality oil products at its Porvoo refinery in Finland. The company has a network of nearly 1,000 fuel stations with expanding service offering, such as EV charging, in Finland and in the Baltics. Neste’s strategy focuses on growth in renewable fuels, which help its customers to reduce their greenhouse gas emissions. Neste is included in many international indices for its sustainability performance. In 2025, Neste's revenue stood at EUR 19.0 billion. Read more: neste.com. Please subscribe to Neste’s releases at https://www.neste.com/media/subscribe.
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