Takeaways

  • Extended Partnership Duration: Nufarm has expanded its strategic partnership with BP to extend the Carinata offtake agreement through 2050, providing long-term security for both parties and signaling confidence in the sustainable biofuels market.
  • Long-Term Revenue Visibility: The extended agreement provides Nufarm with predictable, milestone-based revenue streams spanning over two decades, improving financial planning and investor confidence.
  • Significant Emissions Reduction: Sustainable aviation fuel produced from Nufarm’s Carinata oil achieves approximately 84% reduction in lifecycle greenhouse gas emissions compared to conventional fossil jet fuel.
  • Non-Food Feedstock Advantage: Carinata is grown on existing farmland without competing with food production, addressing one of the primary criticisms of first-generation biofuels.
  • Multi-Country Geographic Presence: The program now operates across Argentina, Brazil, Paraguay, Uruguay, with an emerging pilot in Australia, demonstrating scalability across diverse agricultural regions.
  • Certification and Sustainability: All Nufarm Carinata is independently certified by the Roundtable of Sustainable Biomaterials, ensuring compliance with international sustainability standards.
  • Farmer Diversification: The program enables agricultural producers to participate in premium biofuel markets while diversifying their crop portfolios and reducing monoculture risks.
  • Dual-Purpose Fuel Production: The partnership supports both sustainable aviation fuel and renewable diesel applications, broadening the addressable market.
  • Milestone-Based Incentive Structure: The updated agreement incorporates performance-based funding tied to crop yield improvements, aligning incentives between Nufarm and BP.
  • Market Timing: The extension comes at a critical juncture as major airlines and governments mandate increased SAF blending percentages, creating structural demand growth.

The global aviation and transportation sectors face unprecedented pressure to reduce carbon emissions and transition to sustainable fuel sources. Driven by international climate agreements, corporate environmental targets, and emerging regulatory mandates, the sustainable aviation fuel (SAF) market is poised for dramatic growth over the next two decades. Within this context, ASX-listed Nufarm Limited’s (ASX:NUF) expanded partnership with British Petroleum represents a watershed moment for the commercial-scale production of advanced biofuels.

Announced in 2026, Nufarm’s extension of its strategic partnership with BP to scale sustainable biofuels through 2050 demonstrates the growing market validation of innovative agricultural solutions to energy security challenges. The partnership centers on Carinata, a non-food oilseed crop that produces oil suitable for conversion into sustainable aviation fuel and renewable diesel. This agreement—extending the Carinata offtake through 2050—provides both companies with unprecedented long-term visibility into a critical renewable energy feedstock.

The significance of this partnership extends beyond the commercial relationship between two multinational corporations. It represents a proof-of-concept for integrating agricultural innovation, environmental sustainability, and energy security at scale. For Nufarm, the extended agreement provides revenue visibility and market validation. For BP, it secures access to a certified, sustainable feedstock that helps meet increasingly stringent carbon reduction mandates. For agricultural producers across South America and Australia, it offers a mechanism to participate in premium biofuel markets while diversifying their crop portfolios.

This article provides a comprehensive analysis of the Nufarm-BP partnership extension, examining the strategic rationale, market dynamics, operational implementation, and implications for investors, agricultural producers, and the broader renewable energy sector.

The Strategic Partnership

Foundation and Evolution

The Nufarm-BP partnership emerged from converging market forces and strategic imperatives. BP, as one of the world’s largest integrated energy companies, faces mounting pressure to transition its business model toward lower-carbon energy solutions. The International Energy Agency estimates that meeting net-zero emissions targets by 2050 requires a dramatic expansion of sustainable aviation fuel production—from the current minimal market share to perhaps 80% of jet fuel consumption by 2050.

Nufarm, conversely, recognized an opportunity to leverage its agricultural expertise and global farming networks to develop sustainable feedstocks for energy applications. Rather than competing directly in traditional crop markets, Nufarm identified Carinata as a differentiated product that could command premium pricing while addressing critical sustainability requirements in the fuel sector.

The initial partnership, launched in 2022 with operations in Argentina, represented a pilot program to validate the commercial and agronomic model. The 2026 extension to 2050 reflects the successful execution of this pilot, demonstrating that:

  • Carinata can be grown profitably across diverse agricultural regions
  • Supply chain infrastructure can be established to collect, process, and transport the feedstock
  • BP’s technical requirements can be met consistently
  • Environmental and sustainability certifications can be obtained and maintained

Partnership Scope and Objectives

The expanded partnership encompasses several interconnected objectives:

Long-term Feedstock Security: BP secures guaranteed access to independently certified Carinata oil through 2050, de-risking its sustainable fuel supply chain and providing the predictability required for major capital investments in processing capacity.

Revenue Predictability for Nufarm: The extended offtake agreement provides Nufarm with multi-decade visibility into demand for its primary product, enabling long-term strategic planning, capital investments, and shareholder communications.

Farmer Participation: The program creates economic incentives for agricultural producers to adopt Carinata as a complementary crop, diversifying farm economics and enabling participation in premium biofuel markets.

Sustainability Validation: Through the partnership, both companies demonstrate commitment to environmental stewardship, supporting their respective ESG objectives and regulatory compliance strategies.

Technology Development: The milestone-based funding structure creates incentives to continuously improve crop performance, yield, and oil content through agronomic research and plant breeding.

Strategic Rationale for Each Party

Nufarm’s Perspective: - Leverage existing farmer relationships and distribution networks to expand beyond traditional crop nutrition and seed markets - Create a proprietary, defensible market position in sustainable feedstocks - Diversify revenue streams and reduce exposure to volatility in commodity agricultural markets - Support customer relationships with significant, long-term contracts that enhance business stability

BP’s Perspective: - Secure access to a sustainable feedstock that meets ASTM and international sustainability standards - Reduce supply chain risk by establishing long-term relationships with producers in diverse geographic regions - Support regulatory compliance as governments mandate minimum SAF blending percentages - Position the company as a leader in sustainable energy transition

Competitive Advantage

The Nufarm-BP partnership creates several competitive advantages:

First-Mover Benefits: Carinata is an emerging feedstock in many regions, and Nufarm’s early establishment of supply chains creates barriers to entry for competitors.

Multi-Region Presence: Operating across Argentina, Brazil, Paraguay, Uruguay, and Australia provides diversification benefits and reduces geographic concentration risk compared to competitors dependent on single-country supply.

Integrated Value Chain: Nufarm’s position bridging agricultural production and energy company demands provides a unique perspective on optimizing the entire value chain.

Sustainability Certification: Independent RSB certification provides third-party validation that differentiates Nufarm’s product from uncertified competitors and meets stringent buyer requirements.

Understanding BP’s Biofuels Strategy

Company Context

British Petroleum (BP) is one of the world’s largest integrated energy companies, with operations spanning upstream oil and gas exploration, downstream refining and marketing, and increasingly, renewable energy and biofuels. The company operates across numerous countries and maintains significant assets in conventional hydrocarbon resources, but has committed to transitioning toward low-carbon energy solutions.

Energy Transition Imperative

BP’s pivot toward biofuels and sustainable energy reflects multiple market pressures:

Regulatory Requirements: Governments worldwide have implemented or proposed mandates requiring minimum percentages of sustainable fuels in transportation. The European Union’s Sustainable Aviation Fuels Directive, for example, requires increasingly higher SAF blending percentages.

Investor Expectations: Major institutional investors, particularly those managing environmental, social, and governance (ESG) mandates, increasingly pressure large energy companies to decarbonize business portfolios and demonstrate credible transition strategies.

Demand-Side Requirements: Major airlines including Lufthansa, United, and others have committed to purchasing specified volumes of SAF, creating structural demand that did not previously exist.

Long-Term Business Viability: Fossil fuel-dependent business models face structural uncertainty due to climate policies, shifting consumer preferences, and technological displacement. Diversification toward sustainable fuels represents a hedge against regulatory and market risks.

Biofuels Strategy

Within BP’s broader energy transition strategy, biofuels represent one of several transition vectors:

Advanced Biofuels Focus: BP prioritizes advanced biofuels derived from non-food feedstocks and waste materials, rather than first-generation biofuels based on food crops. This positioning reflects regulatory preferences and sustainability concerns.

Supply Chain Development: Rather than attempting to produce feedstocks internally, BP partners with agricultural companies and producers to secure sustainably-sourced materials. This approach leverages specialized expertise and avoids capital-intensive agricultural operations.

Refining Asset Utilization: BP can convert biofuel feedstocks using existing refining infrastructure, particularly through co-processing with conventional crude oil. This utilization of stranded assets makes biofuels economically attractive.

Geographic Diversification: By partnering with producers across multiple countries, BP reduces concentration risk and secures feedstocks appropriate to different geographic markets.

SAF Production and Applications

BP’s sustainable aviation fuel initiatives focus on:

Technical Production: Converting Carinata oil and other feedstocks into SAF meeting ASTM D7566 specifications and other international standards. The conversion typically occurs at existing refining facilities using hydroprocessing technology.

Market Access: Selling SAF to major airlines under contract, with pricing typically linked to conventional jet fuel prices plus a sustainability premium.

Blending Ratios: Currently, SAF can be blended with conventional jet fuel at ratios up to 50% (with some aircraft certified for higher blending ratios). Expanding the addressable market requires increasing these blending ratios and eventually achieving drop-in replacement status.

Geographic Expansion Strategy

Market Selection Criteria

Nufarm’s geographic expansion reflects strategic selection based on multiple criteria:

Agricultural Suitability: Regions with climate, soils, and growing seasons suitable for Carinata cultivation.

Farmer Base: Existing relationships with agricultural producers who can adopt new crops with technical support.

Infrastructure: Existing grain handling, logistics, and processing infrastructure that can accommodate new feedstocks.

Policy Environment: Favorable regulatory conditions including SAF mandates, biofuel incentives, or sustainability initiatives.

Market Access: Proximity to refining capacity and shipping infrastructure enabling efficient feedstock delivery.

Economic Viability: Local farm economics supporting economically viable Carinata cultivation at scales necessary to justify infrastructure investment.

Strategic Positioning

The five-country portfolio (Argentina, Brazil, Paraguay, Uruguay, Australia) provides:

Geographic Diversification: Climate and crop variability across regions reduce production risk concentrated in single markets.

Seasonal Complementarity: Southern Hemisphere locations enable year-round supply to BP’s global operations.

Scaling Flexibility: Multiple regions allow gradual expansion of supply volumes without overwhelming single-country infrastructure.

Competitive Positioning: Establishes Nufarm as a primary global supplier of Carinata feedstock, creating barriers to competitor entry.

Argentina’s Role in the Program

Program Foundation

Argentina serves as the foundational market for the Nufarm-BP partnership, with the program’s initial launch in 2022. Argentina’s selection reflects:

Agricultural Excellence: Argentina possesses world-class agricultural capabilities with established infrastructure for crop production, storage, and export logistics.

Farmer Relationships: Nufarm maintains long-established relationships with Argentine agricultural producers, providing a ready network for new crop adoption.

Growing Season Fit: Argentina’s winter cropping season aligns perfectly with Carinata’s seasonal requirements, enabling adoption without displacing established summer crops.

Export Infrastructure: Established grain export infrastructure and international shipping capabilities facilitate feedstock delivery to BP’s global refining network.

Regional Characteristics

Argentina’s agricultural regions suitable for Carinata cultivation include:

Buenos Aires Province: Traditional agricultural region with established infrastructure and farmer familiarity with crop innovation.

Entre Ríos Province: Fertile region with appropriate climate and existing crop infrastructure.

Córdoba Province: Major agricultural region with diverse crops and established supply chains.

Santa Fe Province: Significant agricultural producer with infrastructure suitable for feedstock processing.

Production Scale and Trajectory

Initial production in Argentina (2022-2024) established pilot-scale operations across several hundred hectares. Current projections suggest expansion to:

Near-term (2026-2030): 10,000-20,000 hectares under cultivation, producing 5,000-10,000 tonnes of Carinata seed annually.

Medium-term (2030-2035): Potential expansion to 30,000-50,000 hectares with corresponding production volumes.

Long-term (2035-2050): Significant production scale supporting multi-region feedstock consolidation and processing.

Grower Engagement

Nufarm’s strategy in Argentina includes:

Demonstration Programs: Operating demonstration plots showcasing Carinata yield potential and agronomic management to prospective growers.

Technical Support: Providing agronomic advice, seed supply, and management guidance throughout the production cycle.

Pricing Support: Offering contractual pricing arrangements providing revenue predictability beyond commodity crop markets.

Community Engagement: Building awareness and support within farming communities for the sustainability benefits of the program.

Brazil’s Expansion Opportunity

Market Opportunity

Brazil represents the largest expansion opportunity within the Nufarm-BP program, reflecting the country’s agricultural capabilities and expanding policy support for renewable fuels.

Brazil’s rationale for Carinata expansion includes:

Agricultural Scale: Brazil operates the world’s largest agricultural sector by some measures, with diverse crops and extensive growing regions.

Climate Diversity: Brazil’s diverse climate zones enable cultivation across multiple regions with varying seasons.

Biofuel Expertise: Brazil possesses world-leading capabilities in biofuel production and distribution, particularly with sugarcane ethanol, supporting regulatory and infrastructure understanding.

Policy Support: Brazilian government policy increasingly emphasizes biofuel production and low-carbon agriculture.

Existing Nufarm Operations: Nufarm maintains significant operations in Brazil across seed and crop nutrition products, providing infrastructure for expansion.

Regional Characteristics

Potential Carinata cultivation regions in Brazil include:

Southern Region (Rio Grande do Sul, Paraná, Santa Catarina): Traditional crop production regions with appropriate winter-crop climate, existing infrastructure, and farmer experience with crop rotation.

Central-West Region (Mato Grosso do Sul, Goiás): Significant crop production with potential for winter crop adoption in existing rotation systems.

São Paulo State: Agricultural region with infrastructure and farmer relationships.

Minas Gerais: Emerging agricultural region with expanding production capabilities.

Agronomic Suitability

Brazil’s Southern Region provides particularly suitable conditions for Carinata:

Climate: Cool-season conditions enable winter Carinata cultivation between summer crop seasons.

Soils: Diverse soil types suitable for Carinata cultivation, with established management practices for similar crops (canola, mustard).

Growing Season: Autumn planting and spring harvest align with existing crop calendars.

Market Access: Proximity to processing infrastructure and export logistics supporting feedstock delivery.

Production Potential

Brazil’s production potential significantly exceeds that of Argentina:

Near-term (2026-2030): 20,000-40,000 hectares under cultivation, producing 10,000-20,000 tonnes of seed annually.

Medium-term (2030-2035): Potential expansion to 60,000-100,000 hectares with corresponding production volumes.

Long-term potential: Brazil could become the primary source of Carinata feedstock, potentially supporting 20-30% of global SAF production capacity.

Challenge Mitigation

Expansion in Brazil faces several challenges:

Land Competition: Pressure on agricultural land from soybean, corn, and other high-value crops requires demonstrating superior economics for Carinata.

Farmer Education: Introducing a new crop to farmers unfamiliar with Carinata requires comprehensive training and support.

Infrastructure Development: Building seed collection, storage, and processing infrastructure requires significant capital investment.

Supply Chain Coordination: Coordinating production across thousands of small-to-medium farms requires robust organizational capabilities.

Nufarm’s strategy addresses these challenges through direct farmer engagement, technical support, and infrastructure investment.

Paraguay and Uruguay Markets

Paraguay Market Characteristics

Paraguay represents an emerging opportunity for Carinata cultivation, characterized by:

Agricultural Foundation: Paraguay possesses significant agricultural capabilities, particularly in soybean production, providing farmer familiarity with modern agricultural practices.

Climate Suitability: Subtropical climate in northern regions and temperate climate in southern regions enables Carinata cultivation, particularly in cooler southern areas.

Land Availability: Abundant agricultural land availability, particularly for winter crop cultivation, reduces competition for existing crops.

Nufarm Presence: Existing Nufarm operations support expansion of the Carinata program.

Geographic Position: Central South America location provides logistics advantages for regional feedstock consolidation.

Uruguay Market Characteristics

Uruguay offers particular advantages for Carinata expansion:

Climate Optimization: Temperate climate with strong winter season provides ideal growing conditions for winter-crop Carinata.

Agricultural Excellence: Uruguay possesses advanced agricultural capabilities and high farmer sophistication, supporting adoption of new crops.

Policy Support: Uruguay’s government emphasizes sustainability and has implemented favorable policies for renewable energy development.

Small-Scale Efficiency: Smaller agricultural land area compared to Argentina and Brazil enables complete program coverage within limited geographic region.

Export Infrastructure: Well-developed export logistics supporting feedstock delivery to international markets.

Farmer Base: Established relationships between Nufarm and Uruguayan agricultural producers.

Combined Regional Production

Paraguay and Uruguay combined represent:

Near-term (2026-2030): 5,000-10,000 hectares under cultivation, producing 2,500-5,000 tonnes of seed annually.

Medium-term (2030-2035): Expansion to 15,000-25,000 hectares with corresponding production growth.

Role: These markets serve complementary roles to Argentina and Brazil, providing regional feedstock consolidation points and supply diversification.

Operational Coordination

Nufarm coordinates operations across Paraguay and Uruguay through:

Regional Centers: Establishing regional processing and coordination centers for feedstock collection.

Farmer Networks: Organizing farmer groups to facilitate communication, training, and coordinated production.

Supply Consolidation: Coordinating feedstock flows to regional consolidation points for shipment to processing facilities.

Australia Pilot Program

Strategic Rationale

Australia represents a strategic long-term opportunity for Carinata cultivation, justified by:

Geographic Base: Nufarm’s headquarters location in Australia, with extensive existing operations and farmer relationships.

Climate Diversity: Australia’s diverse climates enable Carinata cultivation in cooler temperate regions.

Winter-Crop Alignment: Australia’s Southern regions have strong winter crop production tradition, providing appropriate growing conditions.

Policy Support: Australian government renewable fuel initiatives support biofuel development.

Market Access: Proximity to Asia-Pacific aviation markets and potential for regional SAF processing.

Supply Security: Enabling BP to source feedstock from geographically proximate supplier, reducing logistics costs.

Geographic Scope

The Australian pilot focuses on:

Southern Regions: Victoria, South Australia, and southern New South Wales provide appropriate climate and infrastructure.

Existing Agricultural Regions: Focusing on established cropping zones rather than remote or marginal land.

Farmer Networks: Leveraging existing relationships with Australian agricultural producers.

Pilot Program Characteristics

The initial Australian pilot includes:

Demonstration Scale: Several thousand hectares of demonstration plantings across multiple regions to validate agronomy and economics.

Farmer Participation: Engaging progressive farmers willing to trial new crops and provide feedback on management requirements.

Technical Research: Conducting agronomic research to optimize cultivar selection, planting times, and management practices specific to Australian conditions.

Infrastructure Development: Establishing initial processing and logistics infrastructure to demonstrate feedstock supply chain feasibility.

Expansion Pathway

Successful pilot completion could support:

Near-term (2026-2030): Potential expansion to 5,000-10,000 hectares across Southern Australian regions.

Medium-term (2030-2035): Scaling to 20,000-30,000 hectares if economics and agronomy prove favorable.

Long-term: Potentially supporting 15-20% of Nufarm’s total Carinata feedstock supply from Australian regions.

Challenges and Opportunities

Challenges: - Limited existing infrastructure for specialty crop processing - Farmer familiarity with Carinata limited compared to traditional crops - Weather variability in some regions - Logistics costs for feedstock export

Opportunities: - Premium positioning for locally-sourced sustainable fuels - Potential for processing facility development creating regional employment - Integration with existing Australian agricultural innovations - Support for Australian agricultural sector modernization

FAQs

1. What is Carinata and why is it important for sustainable fuels?

Carinata (Brassica carinata) is an oilseed crop in the mustard family that produces oil suitable for conversion into sustainable aviation fuel and renewable diesel. It is important because: - It is a non-food crop that doesn’t compete with food production - It grows on existing farmland without requiring land clearing or deforestation - Oil yields approximately 550-950 kg per hectare - It provides 80%+ lifecycle emissions reduction when converted to fuel - It integrates into existing agricultural systems as a rotation crop

2. Why did Nufarm and BP extend their partnership to 2050?

The extension to 2050 reflects several factors: - Successful pilot demonstration of Carinata production and supply chain viability - Regulatory mandates creating structural demand for SAF through 2050 - Both parties’ commitment to net-zero carbon targets requiring long-term feedstock security - Economic viability of partnership at larger scales - Confidence in market growth supporting sustained demand

3. How much does Carinata reduce greenhouse gas emissions compared to fossil jet fuel?

SAF produced from Carinata oil achieves approximately 60-84% reduction in lifecycle greenhouse gas emissions compared to conventional fossil jet fuel. The specific reduction depends on: - Production methodology and efficiency - Land-use practices and carbon sequestration - Processing and conversion efficiency - Transportation and logistics - Co-product utilization

These reductions are verified through independent lifecycle assessment and third-party certification.

4. How many countries participate in the Nufarm-BP Carinata program?

The partnership currently includes: - Argentina (original program launched 2022) - Brazil (expanding operations) - Paraguay (growing production) - Uruguay (emerging opportunity) - Australia (pilot program)

These five countries provide geographic diversification and access to diverse agricultural regions and climates.

5. What does RSB (Roundtable of Sustainable Biomaterials) certification mean for Carinata?

RSB certification is an independent third-party verification confirming that: - Carinata production meets rigorous environmental sustainability standards - No deforestation or land-use change occurs - Labor practices meet international standards - Lifecycle GHG reduction meets minimum 50% threshold - Continuous monitoring and compliance verification occur

This certification is increasingly required by major buyers and regulators.

6. How much more expensive is SAF from Carinata compared to conventional jet fuel?

Current SAF price premiums are approximately 20-50% above conventional jet fuel, depending on: - Feedstock costs (Carinata oil prices) - Processing and conversion costs - Scale of operations - Government subsidies and tax credits - Sustainability premiums

These premiums are expected to narrow as production scales and technology improves, potentially approaching cost parity by 2035.

7. Can farmers grow Carinata on land currently used for other crops?

Yes, Carinata is designed to integrate into existing agricultural systems: - It is a winter crop in Southern Hemisphere regions, fitting between summer crop seasons - It grows on land already under cultivation without requiring new agricultural land - It provides crop rotation benefits, breaking pest and disease cycles - It can be part of two-crop-per-year systems in some regions - No deforestation or land-use conversion is required

8. What are the main risks to the Nufarm-BP partnership?

Key risks include: - Agricultural production risk: Poor yields from weather, pests, or disease - Supply chain risk: Infrastructure disruptions or logistics failures - Market risk: Demand reduction if SAF mandates are delayed or reduced - Competitive risk: Emergence of lower-cost feedstocks - Regulatory risk: Changes in sustainability standards or policy support - Counterparty risk: BP’s financial or operational challenges affecting contract performance - Price risk: Commodity oil price volatility affecting feedstock economics

9. How does renewable diesel from Carinata differ from sustainable aviation fuel?

Renewable diesel and SAF are produced through similar processes but serve different applications: - SAF: Specialized fuel meeting ASTM D7566 specifications for aircraft use, with specific performance characteristics for aircraft engines - Renewable Diesel: Fuel meeting ASTM D975 specifications for terrestrial transportation, particularly heavy-duty vehicles - Production: Both use hydroprocessing conversion, with slight differences in processing parameters - Markets: SAF markets driven by aviation mandates; renewable diesel markets driven by transportation fuel mandates - Volumes: Renewable diesel market is substantially larger than SAF market

10. How does Nufarm profit from the partnership?

Nufarm profits through multiple channels: - Feedstock sales: Direct sales of Carinata oil to BP based on contracted volumes and pricing - Service revenues: Agronomic support, seed supply, and technical services to farmers - Processing margins: If Nufarm develops extraction and refining facilities - Co-product sales: Sales of protein meal and other residues from oil extraction - Premium pricing: Higher profit margins on specialty feedstock vs. commodity crops

At full scale, annual partnership revenues could reach $100-180 million with operating margins of 20-40%.

11. What is the timeline for scaling Carinata production to meaningful volumes?

Projected timeline: - 2026-2030: Scale-up phase, reaching 15,000-25,000 hectares under cultivation - 2030-2035: Growth phase, expansion to 40,000-60,000 hectares - 2035-2050: Mature operations, potentially 60,000-100,000 hectares globally

At full scale, Carinata could supply feedstock supporting 10-20% of global SAF production.

12. How does climate change affect Carinata cultivation in different regions?

Climate impacts vary by region: - Positive impacts: Lengthening growing seasons in some cooler regions could expand cultivation areas - Negative impacts: Increased drought risk in some regions (Australia, Argentina) could reduce yields or viability - Adaptation: Breeding for drought tolerance and heat resistance could mitigate climate impacts - Mitigation: Geographic diversification across regions with different climate vulnerabilities reduces concentration risk

13. What regulatory requirements do farmers need to meet to participate?

Participating farmers must: - Follow sustainable agriculture practices (no deforestation, no land-use change) - Maintain detailed production records for traceability - Participate in quality assurance protocols - Comply with food safety and pesticide residue standards - Support third-party audits for RSB certification - Provide feedback on crop performance and challenges

These requirements ensure certification compliance while supporting continuous improvement.

14. Can SAF fully replace conventional jet fuel, or will fossil jet fuel remain necessary?

SAF can technically fully replace conventional jet fuel: - Current aircraft are certified for up to 50% SAF blending, with some certified for higher ratios - Over time, aircraft will be certified for higher SAF blending percentages - By 2050, most aircraft will likely be capable of 100% SAF operation - However, full replacement depends on SAF production scaling to match jet fuel consumption - A mix of SAF and conventional fuel likely characterizes 2030-2040 transition period

15. How does the Nufarm-BP partnership compare to competitors developing sustainable fuels?

Nufarm’s competitive advantages include: - First-mover advantage: Early establishment of Carinata supply chains - Multi-region presence: Geographic diversification reducing supply risk - Farmer networks: Existing relationships facilitating adoption - BP partnership: Exclusive offtake with major energy company providing scale and credibility - Sustainability certification: Independent verification of environmental credentials

Competitive threats include: - Alternative feedstocks (algae, waste-based) that could displace Carinata - Other companies developing competing supply chains - Emerging technologies that reduce feedstock dependence

Conclusion

The extension of Nufarm’s strategic partnership with BP through 2050 represents a pivotal moment in the commercialization of advanced biofuels. By securing long-term offtake agreements for Carinata oil and establishing multi-country supply infrastructure, both companies are signaling confidence in the sustainable fuels market and their ability to capture value within it.

For Nufarm, the partnership offers multiple benefits: long-term revenue visibility supporting major capital investments, participation in high-growth sustainable fuels markets, and positioning as a global leader in advanced biofuel feedstocks. The extended timeline through 2050 aligns with net-zero carbon targets and provides confidence to investors and stakeholders that the partnership is built for sustained success.

For BP, the partnership provides essential feedstock security for its energy transition strategy, enabling the company to transition from fossil fuel dependence toward sustainable energy solutions. Long-term offtake agreements with established suppliers reduce execution risk and support major capital investments in processing capacity.

For agricultural producers across Argentina, Brazil, Paraguay, Uruguay, and Australia, the partnership creates opportunities for profitable crop diversification, participation in premium markets, and alignment with global sustainability objectives.

The partnership’s success will ultimately depend on: - Agronomic execution: Consistent achievement of projected Carinata yields across diverse regions - Supply chain efficiency: Developing cost-effective infrastructure for feedstock collection and processing - Regulatory stability: Maintaining government support for sustainable aviation fuel through mandates and incentives - Market development: Driving SAF adoption across the aviation industry at volumes supporting partnership expansion - Technology progress: Continuous improvement in feedstock yields, processing efficiency, and sustainability performance - Farmer adoption: Successfully engaging thousands of agricultural producers to embrace new crops - Competitive positioning: Maintaining Carinata’s cost and environmental advantages relative to competing feedstocks

While challenges remain—including agricultural production variability, supply chain complexity, regulatory uncertainty, and competitive threats—the fundamental drivers supporting the partnership are compelling. Regulatory mandates, corporate sustainability commitments, technology maturation, and cost reduction trajectories all point toward meaningful SAF market growth through 2050.

The Nufarm-BP partnership extension to 2050 exemplifies how private-sector initiatives can support global climate objectives while generating commercial returns. As the sustainable aviation fuel market develops, partnerships like this one will be essential for scaling advanced biofuel production to meaningful volumes and supporting the aviation sector’s decarbonization pathway.