SANW - S&W Seed surges after forming biofuels JV with Shell

S&W Seed ( NASDAQ: SANW ) +14.3% in Tuesday's following news it entered into a joint venture with Shell's ( NYSE: SHEL ) Equilon Enterprises to develop novel plant genetics for oil seed cover crops as feedstocks for biofuel production.

The companies said the JV, which would be named Vision Bioenergy Oilseeds, plans to develop Camelina and other oilseed species to extract oil and meal for future processing into animal feed, biofuels and other bioproducts.

S&W ( SANW ) will contribute its expertise in seed research, technology, production and processing to the JV, including its seed processing and research facilities in Nampa, Idaho.

Biofuels such as those made from Camelina oil are seen as a potentially effective way to help decarbonize customers in hard-to-abate sectors such as aviation, marine and heavy-duty road transport.

The JV expects to carry out initial grain production in late 2023.

Shell ( SHEL ) said recently it plans to keep spending flat in its renewables business this year after reaching an all-time high in 2022 .

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