Casterra receives new purchase order for castor seeds in Africa

Evogene Ltd. subsidiary Casterra Ag Ltd.—a provider of an integrated solution for industrial-scale cultivation of castor plants based on its elite castor-seed varieties developed for biobased industries including biofuels—announced June 25 the receipt of an additional purchase order valued at approximately $440,000 from an existing customer.

This order expands Israel-based Casterra’s operations into a new African country and, according to the company, solidifies its unique offering in the biofuel market.

“This additional order reflects the confidence in Casterra’s capabilities and in our castor-seed varieties, developed utilizing Evogene’s GeneRator AI tech engine and Casterra’s advanced breeding methods, and marks a significant step in our expansion into Africa,” said Casterra CEO Yoash Zohar. “We expect that our previously announced seed production, now totaling 900 tons, will more than support this order, which is expected to be completed by the fourth quarter of this year, as well as earlier purchase orders received last year. Casterra remains committed to being a world leader in castor-seed development and production and promoting sustainable biofuel production globally.”

Casterra said it anticipates that the remaining revenue from castor-seed orders received during 2023 and in 2024, which were not supplied to date—including the order announced June 25—will be approximately $8.4 million, reflecting a price adjustment due to late delivery of the order from 2023.

Based on the planned production this year, Casterra said it expects to recognize revenues in this amount in the second half of this year.

Casterra said the global biodiesel market size was estimated at $36.48 billion in 2022 and it is expected to hit around $79.12 billion by 2032, expanding at a notable compound annual growth rate of 8.1 percent from 2023 to 2032.

Biofuels offer significant advantages over conventional petrochemical fuels, presenting a renewable and biodegradable alternative with substantially lower negative environmental impact. 

“Castor oil emerges as a standout nonfossil oil candidate due to its carbon-neutral and other properties, making it compliant with tightening European regulatory standards,” Casterra stated.

Casterra’s high oil-yielding varieties have been developed with traits that make the castor plants grown suitable for large-scale farming on marginal soils in semi-arid conditions.

“Castor plants and the castor oil produced have the potential of becoming a major sustainable feedstock for the global biofuel industry—without competing with food crops over prime land,” the company stated.