CARINATA, an oilseed crop that is the newest crop in the portfolio of Australian-owned agribusiness Nuseed, has ticked off another important milestone, with Nuseed negotiating an agreement with a major European biofuel business to use the crop as a feedstock.
French biodiesel giant Saipol and Nuseed have agreed that Saipol will take Nuseed's Carinata crop as a feedstock for certified low carbon oil for renewable oils.
The by-product meal will also be used for livestock feed.
Carinata is a non-genetically modified oilseed cover crop that Nuseed has developed in South America.
It is a mustard-like crop with oil suitable to making jet fuel out of.
In early trials in Australia in 2018 there were yields of up to 3 tonnes a hectare, in line with mainstream oilseed crops like canola.
The oil is designed specifically for biofuel rather than human consumption but the meal is suitable for livestock.
Nuseed made the decision to add the crop to its portfolio after promising results in trials in Argentina.
The first phase of production will be conducted in South America, however there is the opportunity to expand to other regions if it is successful.
A big hook for the crop is its serious environmental credentials.
Carinata has achieved industry leading results in terms of reducing greenhouse gases (GHGs), as certified by industry watchdog Roundtable on Sustainable Materials.
Nuseed global commercial general manager Brent Javra said Carinata would be grown in a closed loop system similar to how Australian producers grow the company's high value Monola crop.
"This agreement enables Nuseed to manage annual contract production with growers for the specific volume, quality, and sustainable production needs of Saipol," Mr Javra said.
He said plans were already underway to ramp up carinata production in south America.
"Given the rapidly growing needs of the European renewable fuels industry, Nuseed plans to significantly scale-up production of carinata grain in Argentina over coming seasons, with longer term plans to develop the crop in additional South American markets and other parts of the world," he said.
Carinata is an autumn-sown oilseed crop that could fit into rotations in a similar place to canola.
Nuseed is wholly owned by Australian Stock Exchange-listed agribusiness Nufarm.