USA- ADM, a global leader in nutrition and agricultural origination, and Syngenta Group, a leading agricultural technology company, have inked a memorandum of understanding to advance the research and commercialization of next-generation oilseeds and improved varieties with low carbon intensity. 

The aim is to meet the growing demand for biofuels and sustainably sourced products, as highlighted by the two companies.

ADM brings its extensive global scale and logistical expertise, encompassing production and storage capabilities, a comprehensive logistical network, and established relationships with growers and customers across various industries, to this partnership.

On the other hand, Syngenta boasts strong research and development capabilities, viewed as vital in providing biotechnology support, seed treatments, and biologicals that contribute to further reducing the carbon intensity of crops.

One of the targeted crops for scaling research and commercialization in this partnership is camelina, a low-carbon-intensity oilseed typically cultivated during the fallow period of a crop rotation.

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. 

Morris added that this partnership builds on the unique capabilities of both parties 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,” he added. 

Justin Wolfe, the president of Syngenta Global Seeds also expressed optimism about the partnership between the two companies and the potential profitability from the pact. 

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 on our environment. Work will begin in North America,” Wolfe added. 

The International Energy Association predicts a 22% growth in global demand for biofuels, including sustainable aviation fuel, amounting to 35 billion liters per year, during the 2022-2027 period. 

A recent report titled “The Future for Sustainable Aviation Fuels” by Owen Wagner, Rabobank senior analyst for grains and oilseeds, highlights the potential increase in sustainable aviation fuel production capacity from 25 million gallons to nearly 2.2 billion gallons by 2026.

This is a market that players like ADM and Syngenta are seeking to bank on with this memorandum. 

“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.”