Commercial agreement targets expansion of newgold® winter canola across the Southern Great Plains, supporting renewable diesel and sustainable aviation fuel supply
10 September 2026, Monheim, Germany: Bayer and Neste, a leading producer of renewable diesel and sustainable aviation fuel (SAF), have finalized a commercial agreement to jointly scale Bayer’s newgold® winter canola as a feedstock for the growing biofuels market.
The collaboration is intended to significantly expand winter canola acreage across the Southern Great Plains of the United States, increasing the region’s potential to supply lower-carbon-intensity feedstocks for renewable fuels.
Demand for biofuels, including renewable diesel and SAF, is projected to grow substantially in the coming years. Estimates from the U.S. Energy Information Administration and Bayer indicate that global biofuel demand could nearly triple to approximately 40 billion gallons by 2040, while McKinsey and Bayer estimates also point to significant long-term growth in renewable fuel markets.
In addition to its potential as an oilseed feedstock, winter canola could provide farmers with a new source of high-protein meal. The meal produced from the crop is expected to be marketed for animal feed, including applications in dairy and beef cattle, poultry and swine production.
“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,” he added.
Building a winter canola value chain
Bayer and Neste plan to establish a newgold® network involving additional partners across the agricultural and biofuels value chain. The network is expected to support the expansion of winter canola production while creating an additional market outlet for growers.
“Maximizing the contribution of novel types of raw materials to support growth in renewables requires open supply chain collaboration,” said Artturi Mikkola, Senior Vice President, Renewable Products Feedstock Sourcing and Trading at Neste.
“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,” Mikkola said.
According to Neste, winter canola represents a renewable raw material that could be scaled rapidly in the coming years, potentially contributing to the supply of feedstocks needed to meet rising biofuels demand.
New winter canola hybrids planned for 2027
Bayer plans to launch its newgold® winter canola hybrids in the fall of 2027. The hybrids are being developed with several traits aimed at supporting production in the Southern Great Plains, including winter hardiness, TruFlex® technology and pod-shatter resistance.
TruFlex®, Bayer’s second-generation Roundup Ready trait technology, is designed to provide growers with weed-management flexibility. Combined with winter hardiness and pod-shatter resistance, the new hybrids are expected to offer potential for competitive yields and higher oil content.
Sold under the newgold® seed brand, the TruFlex winter canola hybrids are intended to provide growers with an additional rotational crop option alongside wheat. Bayer says farmers will have flexibility in determining how the crop fits into their individual production systems.
Expanding the role of intermediate oilseed crops
The partnership forms part of Bayer’s broader focus on intermediate crops that can provide additional feedstock for the biofuels industry without relying exclusively on conventional oilseed crops.
Biofuels could play an important role in the transportation sector’s energy transition, particularly in areas where direct electrification can be challenging, including aviation, rail, heavy-duty equipment and marine transport.
Renewable fuels can be produced from a range of organic feedstocks, including corn, soybeans, canola and emerging intermediate oilseed crops such as winter canola.
Bayer recently highlighted its biofuels platform at its Investor Day in Huxley, Iowa, showcasing its portfolio of intermediate biofuel crops, including camelina, winter canola and CoverCress™.
The new agreement with Neste marks a further step toward developing a commercial value chain for winter canola in the Southern Great Plains, linking seed technology and farm production with growing demand for renewable fuel feedstocks.
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