Joint venture aims to create non-traditional oilseeds that could give farmers new cropping and low-carbon market opportunities.
Bunge and global plant genetics company GDM are joining forces to develop a new generation of oilseed crops aimed at the expanding renewable fuels market.
The companies have announced the creation of Enerseed, a strategic joint venture that will focus on developing and commercializing non-traditional oilseeds that can be used as feedstocks for biofuels.
For farmers, the venture could eventually mean additional cropping options and new opportunities to participate in value chains that place a premium on lower-carbon feedstocks.
Enerseed will combine GDM’s plant genetics, breeding, research and development, trait development and gene-editing capabilities with Bunge’s global oilseed processing network and access to food, feed and fuel markets.
The goal is to create an integrated supply chain that reaches from the development of new seed varieties through production, processing and ultimately the delivery of feedstocks to biofuel customers.
The first seed development projects are expected to begin in selected markets, with the potential to expand into additional regions as crops are developed and commercial opportunities emerge.
“Navigating today’s global landscape requires strategic focus and innovative solutions that address pressing challenges like energy security,” said Julio Garros, Bunge’s Chief Operating Officer.
Garros said the partnership represents another step in Bunge’s efforts to support decarbonization across global supply chains. He added that the companies see opportunities to create value for farmers producing low-carbon feedstocks as well as customers in the feed, food and fuel sectors.
New crops could offer agronomic benefits
Although Bunge and GDM did not identify the individual oilseed species that will make up the Enerseed portfolio, they said the joint venture will concentrate on promising non-traditional oilseeds.
The companies say those crops could provide several environmental and agronomic benefits, including improved soil health, reduced erosion, nitrogen fixation and lower water requirements.
The approach could be particularly interesting to farmers if the new crops fit into existing rotations or allow otherwise fallow periods to generate additional income.
According to the companies, the crops could help growers diversify production, enter new value chains and potentially access premium markets associated with lower-carbon feedstocks.
That farmer value proposition will ultimately depend on several factors, including where individual crops are adapted, their agronomic performance, contracting opportunities, processing infrastructure and the premiums available for low-carbon production.
Genetics meet biofuel market access
GDM CEO Ignacio Bartolome said the venture will allow the genetics company to apply its technology to new crops and markets beyond its traditional work supporting food production.
“At GDM, our purpose is to contribute to global food security through genetic innovation,” Bartolome said. “This joint venture allows us to extend that expertise into new crops and markets that can support the transition to more sustainable energy.”
GDM plans to contribute its global research platform, advanced breeding capabilities, trait development and gene-editing technologies to accelerate development of the new oilseed feedstocks.
Bunge, meanwhile, brings processing capacity and connections across agricultural commodity markets that could help move a successful crop from field-scale production into commercial fuel supply chains.
That connection between genetics and an established processor could be important. Developing a crop with desirable oil characteristics is only one part of creating a new biofuel feedstock market. Farmers also require reliable seed supplies, agronomic knowledge, buyers and an economically viable route to market.
Enerseed adopts open licensing model
Enerseed also plans to use an open licensing model rather than keeping all of its genetics and associated technology within the joint venture.
The model is intended to make intellectual property available to qualified partners and encourage collaboration among seed companies, universities, research institutions, technology developers and other participants.
The companies believe broader access to genetics, production practices and potential end uses could speed the development and commercialization of new low-carbon feedstocks.
For farmers, Enerseed remains an initiative to watch rather than an immediate cropping opportunity. The companies have not yet announced specific crop varieties, production regions, contracts or timelines for commercial-scale farmer production.
But if Enerseed succeeds in moving new oilseeds from research plots to commercial acres, it could give growers another way to connect crop production with the rapidly evolving renewable fuels market.