Key Takeaways
- BP and Corteva formed Etlas, a 50:50 joint venture focused on biofuel feedstocks.
- Etlas will produce oil from crops such as canola, mustard, and sunflower.
- Initial feedstock supply is planned to begin in 2027.
- The venture targets one million metric tonnes of feedstock annually by the mid-2030s.
- The model provides new revenue opportunities for farmers without expanding cropland.
BP And Corteva Establish Etlas Joint Venture
BP and Corteva Inc. announced the launch of Etlas, a newly formed 50:50 joint venture focused on producing crop-based oils for use in biofuels, including sustainable aviation fuel (SAF) and renewable diesel (RD). The venture combines Corteva’s expertise in seed technology with BP’s experience in refining and fuel marketing for commercial transportation.
Etlas is designed to develop and scale crops suited for biofuel production, supporting growing global demand for lower-carbon fuels across aviation and ground transport.
BP-Focused Feedstock Strategy For Biofuels
Etlas plans to source feedstocks from crops such as canola, mustard, and sunflower grown on existing agricultural land. These crops will be planted between main food cropping seasons, allowing farmers to generate additional income during periods when land has traditionally been fallow or used only as cover.
According to the companies, this approach avoids creating new demand for farmland while offering potential soil health benefits. By leveraging existing cropland, the BP-backed venture aims to balance fuel production growth with agricultural sustainability.
Production Targets And Market Context
Etlas aims to produce approximately one million metric tonnes of feedstock per year by the mid-2030s. This volume could support the production of more than 800,000 tonnes of biofuel annually. Initial supply is scheduled to begin in 2027, with feedstocks used in co-processing at refineries and in dedicated biofuels facilities.
Industry estimates project global demand for SAF could reach up to 10 million tonnes by 2030, compared to about 1 million tonnes in 2024. Renewable diesel demand is expected to grow to as much as 35 million tonnes by 2030, up from roughly 17 million tonnes in 2024. Etlas is positioned to help meet this anticipated demand by providing a scalable and reliable feedstock supply, supporting BP’s broader biofuels strategy.
Leadership And Strategic Rationale
Executive Appointments And Partner Perspectives
Ignacio Conti, Global Business Development Director at Corteva, has been appointed Chief Executive Officer of Etlas. Gaurav Sonar, Vice President of Novel Feedstocks at BP, will serve as Chair of the Board of Directors.
Judd O’Connor, Executive Vice President of Corteva’s seed business unit, said the formation of Etlas aligns with Corteva’s mission to support farmers while contributing to global energy needs. He emphasized agriculture’s role in addressing fuel demand through innovation.
Philipp Schoelzel, Senior Vice President of Biofuels Growth at BP, described Etlas as a capital-light joint venture that strengthens BP’s biofuels value chain while offering flexibility and potential returns. He highlighted collaboration with Corteva as a way to respond to customer demand for lower-carbon fuels.
Ignacio Conti said Etlas reflects the growing role of farmers in supplying reliable and cost-competitive SAF feedstocks. He noted that the venture brings together agricultural innovation and energy expertise to scale production globally while creating new revenue streams for growers.
Outlook For BP And Etlas In Biofuels
With Etlas, BP expands its biofuels ecosystem by integrating upstream agricultural production with downstream fuel markets. The joint venture is intended to support long-term growth in SAF and renewable diesel by ensuring consistent access to feedstocks, while reinforcing partnerships with farmers and the agricultural sector.
Both companies stated that Etlas represents a strategic step toward meeting rising biofuel demand while aligning energy production with existing agricultural systems.
