BP & CTVA Partner to Form Etlas JV for Biofuel Feedstock Supply

BP p.l.c. (BP) and Corteva, Inc. (CTVA) have launched a 50-50 joint venture, Etlas, to cultivate crops for extracting oils that will be refined into sustainable aviation fuel (SAF) and renewable diesel (RD).Following the announcement, BP’s share price rose 4.25% to $35.82 per barrel from $34.36.Combining Corteva’s expertise in seed technology and agricultural innovation with BP’s refining and fuel marketing capabilities, Etlas aims to scale the production of vegetable oils from crops like canola, mustard and sunflower for the production of low-carbon fuels and meet the rising global demand for SAF and RD.The strategy involves cultivating crops for the production of low-carbon fuels on existing farmland between food crop cycles and improving soil health while creating additional income opportunities for farmers without the need for additional land.The new JV expects supply to commence in 2027, serving both refinery co-processing operations and dedicated biofuel facilities, and targets production of 1 million metric tons of feedstock annually by the mid-2030s — enough to generate more than 800,000 tons of biofuel.Investors should note that this project has enabled BP and CTVA to align their business models with the current global shift toward cleaner fuel while generating additional future cash flow.BP carries a Zacks Rank #3 (Hold) at present while CTVA has a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Valero Energy Corporation VLO and Phillips 66 PSX are two other refining players that are involved in the production of biofuel, each carrying a Zacks Rank #3 at present.VLO produces renewable diesel mainly from used cooking oil, recycled animal fats and inedible corn oil. VLO has a production capacity of 1.2 billion gallons of renewable diesel annually and can produce up to 235 million gallons of neat SAF.PSX produces renewable fuels at its Rodeo Renewable Energy Complex from waste oils, fats, greases and vegetable oils. PSX has a daily production capacity of 50,000 barrels of renewable fuels.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Valero Energy Corporation (VLO): Free Stock Analysis Report Phillips 66 (PSX): Free Stock Analysis Report Corteva, Inc. (CTVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks