Repsol and Bunge have announced a collaboration focused on producing renewable fuels in Europe using intermediate oilseed crops such as camelina and safflower. These crops will serve as feedstock for hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF), with claimed emissions reductions of up to 90% compared to traditional diesel.

While this development is primarily aimed at decarbonizing the energy and transport sectors, it has implications for the food industry, particularly industrial bakeries that rely heavily on vegetable oils in both products and processes.

Key Considerations for Industrial Bakers:

1. Vegetable Oil Market Dynamics Bunge is a major global supplier of edible oils. Diversifying into non-food crops for energy could influence the supply, demand, and price dynamics of food-grade oils. This shift may drive broader changes in oilseed crop cultivation, impacting availability or prompting investment in more sustainable oil alternatives.

   
   

2. Supply Chain Sustainability The crops being used and being grown on fallow land, are designed to enhance biodiversity and soil health. This aligns with sustainability goals increasingly important to large-scale food producers. Incorporating such practices could bolster corporate responsibility reporting and compliance with European sustainability frameworks (e.g., the EU’s Farm to Fork Strategy).

   
   

3. Energy Source Transition As energy-intensive operations, bakeries stand to benefit from renewable fuel innovations. Cleaner alternatives to conventional diesel could play a role in decarbonizing logistics and production, aligning with net-zero targets many industrial food businesses are now adopting.

   
   

4. Regulatory and Brand Impact As the EU and other governments push for carbon neutrality, partnerships like this one may set new standards or influence future regulations across sectors, including food. Being proactive in adapting to these shifts may protect brand reputation and market access.

   
   

Although the immediate application of this initiative lies outside the food industry, its ripple effects, on raw material sourcing, energy use and sustainability strategy are relevant to industrial bakers.

Monitoring developments in biofuel feedstocks and partnerships involving major agri-processors like Bunge will be important for strategic planning in the sector.