Bayer is doubling down on biofuel feedstocks, announcing a long-term strategic alliance with bp to scale camelina as an intermediate oilseed crop aimed at supplying the fast-growing markets for sustainable aviation fuel (SAF), renewable diesel and biodiesel.
The partnership will see Bayer deploy its seed technology capabilities and farmer network alongside bp’s refining and fuel expertise, with commercialisation initially focused on North America. The goal is to help build a reliable supply of intermediate oilseeds into a market projected to approach 40 billion gallons by 2040.
For Bayer, however, the timing is not coincidental. After years of slow progress for crops like camelina, the company believes a shift in regulatory frameworks is finally creating the conditions needed for scale.
“Regulatory support for low-carbon fuels is stronger than ever, encouraging farmers to include new crops into their rotation,” a Bayer spokesperson told AgTechNavigator.
A new regulatory landscape reshaping crop choices
Bayer’s optimism reflects a broader global policy shift.
In the US, support for low-carbon fuels is largely incentive-driven, relying on tax credits such as the 45Z Clean Fuel Production Credit (despite fears it was on the chopping block), alongside state-level programmes like California’s Low Carbon Fuel Standard and federal initiatives such as the SAF Grand Challenge. These frameworks reward fuels based on lifecycle emissions reductions rather than imposing strict blending quotas.
By contrast, Europe has taken a more interventionist approach, with binding mandates under RED III, as well as sector-specific rules such as ReFuelEU Aviation and FuelEU Maritime, which effectively compel the use of low-carbon fuels through quotas and declining carbon intensity requirements.
Taken together, these policies are creating what Bayer sees as unprecedented momentum.
“These changes make us genuinely confident that camelina can become a significant global feedstock,” the spokesperson said. “Governments around the globe are implementing new biofuel policies and blend mandates combined with various incentives.”
From niche to scalable crop?
Camelina has long been touted as a promising biofuel feedstock, but has struggled to move beyond small-scale deployment.
Bayer argues that this time is different – not just because of policy, but because of improving market structures and technical advances.
The company has been building its position in the space through a combination of partnerships and acquisitions, including its 2025 purchase of camelina assets and its earlier majority stake in CoverCress, another oilseed designed for biofuel markets.
Other majors are leaning into biofuels. In January 2026 Corteva announced its dedicated joint venture with bp to scale biofuel feedstock production. BASF, however, has pulled back from direct exposure (it exited its bioenergy enzymes business in June 2024) and is focusing on enabling low‑carbon agriculture instead.
Alongside policy support, Bayer points to the emergence of integrated value chains as a critical enabler.
“Value chain partnerships are connecting feedstocks with unmet demand,” the spokesperson said. “Our collaboration with bp, for example, has created momentum, with clear demand from the aviation sector for sustainable fuel sources.”
The company also argues that advances in breeding and agronomy are reducing historical barriers to adoption.
“Recent breakthroughs in camelina breeding and farming technology have made it much easier for growers to achieve strong, consistent yields.”
Selling the economics to farmers
Ultimately, scaling camelina will depend on whether farmers see it as a viable commercial proposition rather than a sustainability experiment.
Bayer is positioning the crop as a flexible addition to existing systems rather than a replacement for core crops like corn or soy.
Camelina under the newgold™ brand is designed to function as an intermediate crop between main growing seasons; within existing rotations, supporting agronomic management; and on marginal or underutilised land, improving productivity
The company also emphasises commercial certainty.
“Farmers benefit from secure off-take agreements, meaning their harvests have a guaranteed market through our partnership with bp,” the spokesperson said.
This combination of market access and flexibility is intended to lower risk and make adoption more attractive.
“Camelina fits easily into current crop rotations and does not replace existing core crops… The economic incentives are designed to make camelina a reliable choice, not just a sustainable one.”
Avoiding the ‘food versus fuel’ backlash
One of the key criticisms historically levelled at biofuels is the potential competition with food production – a tension Bayer is keen to avoid.
Camelina is being positioned explicitly as an intermediate or rotational crop, grown between main food crops or on otherwise unused land.
“Camelina is designed as an intermediate or rotational crop, utilising land between main food crops rather than replacing them,” the spokesperson said.
The crop’s characteristics – winter hardiness, drought tolerance, and suitability for fallow or marginal land – are central to that argument.
Bayer also pointed to emerging certification schemes aimed at ensuring traceability of feedstocks back to farm level, as part of efforts to address sustainability concerns.
Evidence and unanswered questions
Still, questions remain over whether intermediate crops like camelina can scale without unintended consequences.
Asked about evidence that camelina does not negatively impact yields, soil health or farm operations, Bayer pointed to ongoing research and early field experience.
“The integration of intermediate crops into rotations adds additional living roots to the system which can improve soil structure and health, reduce erosion, and improve the resilience of the farming operation,” the spokesperson said.
At the same time, Bayer acknowledged that the evidence base is still developing.
“There is ongoing public and private research to understand the impacts… Based on our experience and research to date, we are beginning to generate an evidence base.”
A strategic bet on policy-driven agriculture
The alliance with bp ultimately underscores a broader shift in how ag majors are positioning themselves in the energy transition.
Rather than producing fuels directly, Bayer is focusing upstream – developing crops, seed systems and farmer networks that can feed into low-carbon fuel markets.
The success of that strategy, however, hinges heavily on policy continuity.
For now, Bayer is betting that regulatory momentum – combined with improving economics and partnerships – has finally aligned to take camelina from concept to scale.
“Intermediate crops such as camelina provide farmers with additional revenue streams without disrupting the cultivation of primary food crops,” the spokesperson said. “Bayer is committed to ensure that introduction of intermediate crops… has both positive benefits for the land and economic benefits for farmers.”
