Strategic Investment Aims to Enhance Omega-3 Production and Bioenergy Applications
Nufarm, the ASX-listed crop protection and seed technology company, has made a significant investment in the development of camelina as an oilseed crop by acquiring key intellectual property and materials from US-based Yield10 Bioscience. This strategic move, costing up to US$5 million, includes an upfront payment of $3 million to Yield10.
Yield10 Bioscience is renowned for its advanced genetic techniques to develop camelina sativa as a platform crop for large-scale production of seed products. These products include feedstock oils for renewable diesel, aviation biofuels, and omega-3 oils for pharmaceutical, nutraceutical, and aquafeed applications.
Greg Hunt, Nufarm’s CEO, highlighted the strategic fit of Yield10’s camelina platform with Nufarm’s Omega-3 platform. This integration provides complementary eicosapentaenoic (EPA) and docosahexaenoic (DHA) acid profiles along with herbicide-tolerance traits.
“Yield10 camelina assets and know-how in both omega-3 and bioenergy sectors have a unique fit with Nufarm’s Value Beyond Yield and platform strategies,” said Mr. Hunt. “While the program still requires further development time and investment before achieving revenue, it offers a broadened portfolio of solutions for our customers both at the farm-gate and with end-use customers.”
Oliver Peoples, President and CEO of Yield10, expressed that this transaction is beneficial for their shareholders, business partners, and employees.
The potential for camelina to be grown as a winter cover crop extends its growing period and regions, offering farmers a new income source while supporting lower-carbon sustainability goals. Nufarm plans to continue developing, obtaining regulatory approvals, and commercializing Omega-3 camelina, focusing on winter varieties that can serve as cover crops.
Future Expansion
In addition to the acquisition, Nufarm and Yield10 have signed a Memorandum of Understanding to negotiate the purchase of all Yield10’s assets. This potential deal would include Yield10’s omega-3 assets and bioenergy sector, pending approval from Yield10 shareholders.
Mr. Peoples stated, “We anticipate collaborating closely with the Nufarm team to finalize the asset purchase agreement and complete the shareholder vote. We believe that this will ensure a smooth transition and enable Nufarm to expedite the commercialization of plant-based omega-3 oils produced using camelina.”
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