Corteva and bp Launch Biofuel Feedstock Joint Venture Etlas™

Rhea-AI Summary

Etlas is a new 50:50 joint venture between Corteva (NYSE: CTVA) and bp (NYSE: BP) to produce crop-based oil feedstocks for sustainable aviation fuel (SAF) and renewable diesel (RD). Etlas will use canola, mustard and sunflower grown on existing cropland between main food seasons and aims to begin initial supply in 2027 for co-processing and dedicated biofuels plants. The venture targets 1 million metric tonnes of feedstock per year by the mid-2030s, which could yield over 800,000 tonnes of biofuel. Ignacio Conti will be CEO and Gaurav Sonar will chair the board. Etlas is described as a capital-light JV designed to scale feedstock supply to meet growing SAF and RD demand.

Market context: leading estimates project SAF demand rising toward ~10 million tonnes by 2030s and RD demand toward ~35 million tonnes by 2030s, positioning Etlas as a supplier option.

Positive

• 50:50 joint venture between Corteva and bp
• Target of 1 million metric tonnes feedstock per year by mid-2030s
• Potential to produce over 800,000 tonnes of biofuel from feedstock target
• Initial feedstock supply scheduled to begin in 2027

Negative

• None.

Key Figures

Joint venture split 50:50 Ownership structure of Etlas between Corteva and bp

Feedstock target 1 million metric tonnes per year Etlas feedstock output goal by mid-2030s

Biofuel output potential Over 800 thousand tonnes Biofuel that Etlas feedstock could produce annually

SAF demand 2030 10 million tonnes Leading industry estimate of global SAF demand by 2030

SAF demand 2024 1 million tonnes Estimated global SAF demand in 2024

RD demand 2030 35 million tonnes Leading industry estimate of global RD demand by 2030

RD demand 2024 17 million tonnes Estimated global RD demand in 2024

Pre-news share price $34.36 BP price before Etlas joint venture announcement

Market Reality Check

$33.67 Last Close

Volume Volume 15,900,614 is 1.92x the 20-day average of 8,288,990 shares before this news. high

Technical Trading above 200-day MA at 32.77, with pre-news price at 34.36.

Peers on Argus

Before this partnership news, BP was down 4.87%. Peers were mixed: PBR (-2.12%), TTE (-2.95%), EQNR (-3.74%) were also lower, while SU rose 0.69% and SNPTY was flat, pointing to both sector pressure and BP-specific underperformance.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 24	Asset divestiture	Neutral	-0.8%	Stonepeak to acquire majority stake in Castrol; BP keeps 35% interest.

Pattern Detected

Limited recent history in the feedstock/biofuels area; the one prior event was a Castrol divestiture that saw a mild negative reaction.

Recent Company History

Over the past months, BP has balanced portfolio moves and capital returns. A Dec 24, 2025 deal saw Stonepeak acquire a majority interest in Castrol at an enterprise value of about $10.1 billion, with BP retaining a 35% stake and completion targeted by end of 2026. Alongside low-carbon and biofuels initiatives highlighted in prior filings, the new Etlas™ joint venture extends BP’s activity in biofuels feedstocks alongside its traditional energy operations.

Market Pulse Summary

This announcement outlines BP’s move, via Etlas™, into large-scale crop-based feedstocks for sustainable aviation fuel and renewable diesel, targeting up to 1 million metric tonnes of feedstock annually by the mid‑2030s. It complements recent corporate actions, including the Castrol stake sale and ongoing low-carbon energy initiatives. Investors may focus on milestones such as initial 2027 supply, evolving demand for SAF and RD, and how this venture fits alongside capital returns and portfolio reshaping highlighted in recent filings.

Key Terms

biofuel feedstocks technical

"to produce and deliver biofuel feedstocks to global markets"

Biofuel feedstocks are the plant, animal or waste materials—such as corn, sugarcane, vegetable oils, forestry residues or algae—that are processed into liquid or gaseous fuels. They matter to investors because feedstock type, cost, availability and sustainability shape a biofuel producer’s profit margins, supply risk and exposure to regulation and public scrutiny; think of feedstocks as the ingredients in a recipe that determine both price and quality of the final product.

sustainable aviation fuel (SAF) technical

"for use in the production of biofuels like sustainable (or synthetic) aviation fuel (SAF)"

Sustainable aviation fuel (SAF) is a drop-in replacement for conventional jet fuel made from non-petroleum sources such as waste oils, plant residues, or specially grown crops and manufactured to work with existing aircraft and fueling systems. It matters to investors because airlines and regulators are pushing to cut aviation’s carbon footprint, creating long-term demand, supply-chain opportunities, and regulatory risks for companies that produce, supply, or fail to adopt SAF—think of it as cleaner fuel that can reshape future revenue and cost structures.

renewable diesel (RD) technical

"biofuels like sustainable (or synthetic) aviation fuel (SAF) and renewable diesel (RD)"

Renewable diesel (RD) is a low-carbon liquid fuel that behaves and burns like conventional diesel but is made from renewable sources such as vegetable oils, animal fats or waste cooking oil. For investors, RD matters because it can command higher prices, qualify for regulatory credits or mandates, and drive demand for producers and refineries that can supply it—much like converting recycled materials into a premium, in-demand product.

co-processing technical

"Initial supply is scheduled to begin in 2027 for use in co-processing at refineries"

Co-processing is the practice of using waste materials or by-products as inputs—such as fuel or raw material—in an industrial production process instead of throwing them away. For investors it matters because it can lower operating costs, reduce waste-disposal liabilities, and affect regulatory and environmental risk; think of it like a factory reusing scraps to cut bills and avoid fines, which can boost margins and protect reputation.

AI-generated analysis. Not financial advice.

Partnership will leverage Corteva technology and bp integrated downstream capabilities to produce and deliver biofuel feedstocks to global markets

Ignacio Conti to be CEO, Gaurav Sonar to be Chair of the Board of Directors

INDIANAPOLIS and LONDON, Jan. 7, 2026 /PRNewswire/ -- Corteva Inc. (NYSE: CTVA) and bp (NYSE: BP, LSE: BP.L) today announced the launch of Etlas, their new 50:50 joint venture that will produce oil from crops – including canola, mustard and sunflower – for use in the production of biofuels like sustainable (or synthetic) aviation fuel (SAF) and renewable diesel (RD). Etlas will harness both Corteva's century-long expertise in seed technology to develop crops ideally suited to produce SAF and RD as well as bp's expertise in refining and marketing fuel for the commercial transportation market.

Etlas aims to produce one million metric tonnes of feedstock per year by the mid-2030s, which could produce over 800 thousand tonnes of biofuel. Initial supply is scheduled to begin in 2027 for use in co-processing at refineries as well as at dedicated biofuels plants.

Leading industry estimates have global demand for SAF growing to as much as 10 million tonnes by 2030¹ -- from about 1 million tonnes in 2024, while global demand for RD could rise to as much as 35 million tonnes by 2030² from approximately 17 million tonnes in 2024. Etlas is designed to provide a reliable, scalable supply of feedstock to help meet this expected demand. 

The feedstock Etlas uses will be harvested from crops that are grown on existing cropland, between main food cropping seasons.  Such intermediate crops can help improve soil health while providing farmers with a new revenue stream. As they use existing cropland during times when it has previously been unproductive like a fallow or cover period, they also do not lead to additional demand for land.  

Judd O'Connor, executive vice president of Corteva's seed business unit added: "By helping found Etlas, Corteva continues to deliver on two critical parts of our mission: to help fuel the world and to support farmers. Agriculture is part of the solution, and we are excited to see Etlas come to life."  

Philipp Schoelzel, senior vice president, biofuels growth, bp added: "This capital light joint venture creates optionality in our biofuels value chain, strengthening our position and helping deliver attractive returns. We're excited to collaborate with Corteva to deliver what our customers want."

Ignacio Conti, Global Business Development Director at Corteva will be the new Etlas Chief Executive Officer and Gaurav Sonar, vice president, Novel Feedstocks at bp will become its Chair of the Board of Directors.

"As the aviation industry looks for reliable, sustainable and cost-competitive sources of SAF, it is clear farmers have a critical role to play," said Etlas CEO, Ignacio Conti. "Etlas brings together global leaders in agriculture innovation and energy production to harness this demand by leveraging technological expertise and trusted relationships with farmers around the world to help scale production and boost supply while offering farmers new revenue streams."

About Corteva

Corteva, Inc. (NYSE: CTVA) is a global pure-play agriculture company that combines industry-leading innovation, high-touch customer engagement and operational execution to profitably deliver solutions for the world's most pressing agriculture challenges. Corteva generates advantaged market preference through its unique distribution strategy, together with its balanced and globally diverse mix of seed, crop protection, and digital products and services. With some of the most recognized brands in agriculture and a technology pipeline well positioned to drive growth, the company is committed to maximizing productivity for farmers, while working with stakeholders throughout the food system as it fulfills its promise to enrich the lives of those who produce and those who consume, ensuring progress for generations to come. More information can be found at  www.corteva.com.

About bp

For more information, please visit www.bp.com 

Cautionary Statement on Forward-Looking Statements
This release contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and may be identified by their use of words like "estimates," "expects," "will," "aims," "believes," "intends," or other words of similar meaning. All statements that address expectations or projections about the future, including statements about the company's expectations related to regulatory approvals, product development, product offerings and product, financial or sustainability performance are forward-looking statements. No obligation to update or revise any forward-looking statement, except as required by applicable law, is hereby undertaken and any such obligation is specifically disclaimed. A detailed discussion of some of the significant risks and uncertainties which may cause results and events to differ materially from such forward-looking statements or other estimates is included in the "Risk Factors" section of Corteva's Annual Report on Form 10-K, and as modified by subsequent reports on Form 10-Q and Current Reports on Form 8-K.

¹ Financing Sustainable Aviation Fuels: Case Studies and Implications for Investment | World Economic Forum
² IEA Renewable Energy Progress Tracker – Accelerated Scenario (42.7 billion litres converted to tonnes)

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SOURCE Corteva Agriscience

FAQ

What is Etlas and who owns it (stock symbols)?

Etlas is a 50:50 joint venture between Corteva (NYSE: CTVA) and bp (NYSE: BP) to produce crop-based feedstocks for SAF and RD.

What production target did Etlas announce and by when?

Etlas aims to produce 1 million metric tonnes per year of feedstock by the mid-2030s.

When will Etlas start supplying feedstock for biofuels?

Initial supply is scheduled to begin in 2027 for co-processing at refineries and at dedicated biofuels plants.

Which crops will Etlas use for feedstock production?

Etlas will produce oil from crops including canola, mustard and sunflower grown on existing cropland between main food cropping seasons.

Who will lead Etlas after launch?

Ignacio Conti will serve as Etlas CEO and Gaurav Sonar will be Chair of the Board of Directors.

How much biofuel could Etlas' feedstock target produce?

The stated feedstock target could produce over 800,000 tonnes of biofuel annually.

How does Etlas position against projected SAF and RD demand?

Etlas is designed to supply feedstock amid estimates of SAF demand growing toward ~10 million tonnes and RD toward ~35 million tonnes by the 2030s.