CHICAGO — ADM and Syngenta Group have signed a memorandum of understanding to collaborate in scaling research and commercialization of low carbon-intensity next-generation oilseeds and improved varieties. The partnership is expected to help meet increasing demand for biofuels and other sustainably-sourced products, the companies said.
ADM brings to the partnership global scale and logistical expertise, including production and storage capabilities, a vast logistical network and relationships with growers and customers across a wide range of industries. Syngenta, meanwhile, has strong research and development capabilities that the companies believe will provide biotechnology support, seed treatments and biologicals that further reduce the carbon intensity of crops.
Camelina, a low carbon-intensity oilseed typically grown in the fallow period of a crop rotation, is one of the crops ADM and Syngenta are looking to scale in research and commercialization.
“This exciting MOU with Syngenta demonstrates how we are working with partners to bring the full value chain together to support new seed technologies,” said Greg Morris, president of ADM’s Ag Services & Oilseeds business. “It builds on our unique capabilities by creating a path to scale the processing of cover crops, a process we’ve already successfully piloted. We look forward to working with Syngenta to advance this work and continue to meet demand for sustainably sourced fuels and other products.”
Justin Wolfe, president of Syngenta Global Seeds, added, “Syngenta is excited to join forces with ADM to bring more sustainable and profitable solutions to farmers. Sustainability is a core enabler of our business strategy. We believe collaborations, such as this one, are important ways to drive quicker innovation that delivers higher yield potential while carrying a lower impact to our environment. Work will begin in North America.”
Global demand for biofuels — such as sustainable aviation fuel — is expected to grow by 35 billion liters per year, or 22%, over the 2022-27 period, according to the International Energy Association. Aviation fuels recently were featured in a new report called “The Future for Sustainable Aviation Fuels,” authored by Owen Wagner, Rabobank senior analyst, grains and oilseeds. Mr. Wagner said sustainable aviation fuel production capacity could potentially increase from 25 million gallons now to nearly 2.2 billion gallons by 2026.
“Farmers have always been stewards of the land,” said Alison Taylor, chief sustainability officer at ADM. “We’re already expanding our partnerships with farmers through our re:generations regen ag program; this MOU represents another pathway for us to help them drive value by positioning their businesses to meet global demand for sustainably-sourced products.”