Nufarm and Yield10 Bioscience have entered into a Memorandum of Understanding and License Agreement, securing a commercial licence for Omega-3 production using Camelina, marking a significant step towards sustainability in nutrient sourcing.
Nufarm and Yield10 Bioscience Strike Agreement on Omega-3 Camelina Assets
Woburn, MA and West Sacramento, CA – 17th July 2024:
Yield10 Bioscience, Inc., an agricultural bioscience firm, has announced a significant development in its business dealings with Nufarm Limited’s seed technologies platform, Nuseed Nutritional US Inc. The two companies have entered into a Memorandum of Understanding (MOU) and a License Agreement that revolutionises the partnership landscape concerning Omega-3 production in Camelina.
Under this new agreement, Nufarm will acquire a commercial licence to use Yield10’s intellectual property, materials, and know-how pertaining to Omega-3 production in Camelina, with a financial commitment up to USD $5 million. Both firms have also committed to negotiate exclusively for the sale of Yield10’s remaining assets to Nufarm, contingent upon shareholder approval.
Omega-3 fatty acids, commonly sourced from ocean-caught fish, are essential for human health, particularly the types eicosatetraenoic acid (EPA) and docosahexaenoic acid (DHA). Current sources, primarily fish oil from anchovies, face sustainability issues due to overfishing. Yield10’s Camelina technology is positioned as a viable, land-based alternative to alleviate such pressures.
Greg Hunt, CEO and Group Executive of Nufarm, commented on the strategic fitting of Yield10’s Camelina assets within Nufarm’s broader Value Beyond Yield® programme. He noted that while the initiative requires further investment for full commercialisation, it aligns with the company’s commitment to offering sustainable and innovative agricultural solutions.
From Yield10’s perspective, President and CEO Oliver Peoples expressed optimism about the deal. He highlighted the benefits of the initial payment in sustaining the company’s core biological assets and regulatory requirements. Moreover, the agreement is expected to provide Yield10 a financial pathway to secure the necessary shareholder endorsement for the asset sale, ensuring a smooth transition to Nufarm for ongoing Omega-3 commercialisation.
Both parties now face the task of drafting a formal purchase agreement, following which Yield10’s shareholders will be called to vote in a special meeting.
Nufarm, headquartered in Melbourne, Australia, is a century-old agricultural innovator listed on the Australian Securities Exchange. The company is distinguished for its work in crop protection, seed technology, and the production of plant-based Omega-3.
Yield10, based in Woburn, Massachusetts, employs advanced genetics to develop the oilseed Camelina sativa, aiming for large-scale production of sustainable seed products. These products include feedstock oils for renewable diesel, aviation biofuels, and Omega-3 oils for various commercial uses.
This agreement underscores the continuing evolution of the agricultural bioscience sector, with potential positive impacts on sustainable farming practices and the global supply of essential nutrients.