Winter camelina production in the US state of Idaho. Photo: Yield10

NUFARM has announced an investment in development of camelina as an oilseed crop by acquiring key intellectual property and materials from US firm Yield10 Bioscience.

The ASX-listed crop protection and seed technology company will pay Yield10 up to US$5 million under the licence agreement, with Nufarm making an upfront payment of $3M to execute the contract.

Yield10 uses advanced genetics to develop the camelina sativa as a platform crop for large-scale production of seed products, including feedstock oils for renewable diesel and aviation biofuels, and omega-3 oils for pharmaceutical, nutraceutical and aquafeed applications.

Nufarm chief executive officer Greg Hunt said Yield10’s camelina platform fits strategically with Nufarm’s Omega-3 platform, providing eicosapentaenoic (EPA) and docosahexaenoic (DHA) acid profiles and herbicide-tolerance traits complementary to those in Nufarm’s omega-3 canola.

“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,” Mr Hunt said in a release to the ASX.

“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.”

Yield10 president and chief executive officer Oliver Peoples said the move was in the “best interest of our shareholders, business partners, and employees”.

In the release, Nufarm said the potential to grow camelina as a winter cover crop also expands the possible growing period and regions for plant-based omega-3.

Nufarm intends to continue the further development, regulatory approvals and commercialisation of Omega-3 camelina with a focus on the development of winter varieties that can be grown as a cover crop.

These means camelina has potentia to become a source of income to growers, and contribute to lower-carbon sustainability objectives.

Future deal flagged

Alongside the acquisition, the companies have also signed a Memorandum of Understanding to begin negotiations for Nufarm to purchase all of Yield10’s assets.

These would include omega-3 assets which would enable Nufarm to buy out its licence from Yield10, and the bioenergy sector, subject to an existing licence granted to a third party.

Nufarm said this move comes from an interest in the further development and application of Yield10’s winter camelina as a cover crop into the bioenergy sector, in combination with further improved stacks of herbicide, oil and meal-improvement traits.

Mr Peoples said the asset purchase would require approval from Yield10 shareholders.

“We anticipate collaborating closely with the Nufarm team to finalise the asset purchase agreement and complete the shareholder vote,” Mr Peoples said.

“We believe that this will ensure a smooth transition and enable Nufarm to expedite the commercialisation of plant-based omega-3 oils produced using camelina.”

Source: ASX, SEC