Casterra's Brazil Success Puts Castor Oil on the Biofuel Fast Track

REHOVOT, Israel – March 31, 2026 – By George Millen

A series of successful commercial field trials in Brazil by Casterra Ag Ltd. is positioning the humble castor bean as a powerful new contender in the global race for sustainable energy. The Israeli ag-tech company, a subsidiary of computational biology pioneer Evogene, announced that its high-yield castor seed varieties have proven economically viable for large-scale, mechanized farming, opening the door for castor oil to become a mainstream feedstock for the burgeoning biofuel industry.

For decades, castor oil has been a premium, niche product used in everything from cosmetics and pharmaceuticals to industrial lubricants and plastics. Its potential as a fuel source has been recognized, but high production costs and traditional, labor-intensive farming methods have kept it on the sidelines. Casterra's breakthrough in Brazil suggests that technological innovation may have finally overcome these hurdles, offering a scalable, non-food crop alternative to feedstocks like soy and corn.

The successful trials come at a critical time. Global demand for biofuels is surging, with the International Energy Agency (IEA) projecting consumption could more than double by 2030 under certain net-zero scenarios. Nations are increasingly implementing policies to decarbonize their transport sectors, creating immense pressure to find sustainable, reliable, and economically competitive fuel sources that do not compromise food security.

Brazil's Biofuel Ambitions Find a New Ally

Nowhere is this push more apparent than in Brazil, a global leader in renewable energy and the world's second-largest ethanol producer. The country is expected to account for 40% of the world's biofuel expansion through 2028, driven by ambitious government policies like the recently enacted "Fuel of the Future" law. This framework is designed to steadily increase the mandated blend of biofuels like ethanol and biodiesel into the national fuel supply.

However, Brazil's biofuel industry heavily relies on food crops, primarily sugarcane for ethanol and soybeans for biodiesel. This reliance creates a persistent tension between fuel production and food security, often referred to as the "food vs. fuel" debate. Casterra's success introduces a compelling alternative. Castor is a non-edible crop that can thrive on marginal, semi-arid lands unsuitable for most food cultivation, effectively sidestepping this central conflict.

The company's trials, conducted over 74 hectares in the state of Bahia, demonstrated that its proprietary seeds can deliver profitable yields even under challenging conditions. A significant portion of the trial area, 64 hectares, was rainfed and received only 382 mm of rainfall during the growing cycle, underscoring the crop's drought-resistant characteristics. By proving the viability of large-scale, mechanized harvesting, Casterra is charting a path to lower the farming costs of castor and make its oil price-competitive with established feedstocks.

"I am very satisfied with these results, which reaffirm Casterra's concept for developing economic castor farming," stated Mr. Yoash Zohar, the company's CTO. "These results are a milestone in positioning castor as a sustainable and scalable feedstock for the growing biofuel and bio-based industries."

Farming the Future in the Brazilian Cerrado

Historically, castor cultivation in Brazil has been the domain of small-scale producers using low-tech methods, resulting in low productivity. Casterra's model represents a paradigm shift, introducing advanced genetics and modern agronomy to a crop with untapped potential. The company's seeds are specifically designed for low-input, mechanized farming, which reduces labor costs and increases efficiency, making it an attractive proposition for commercial farmers.

The shift could bring significant economic benefits to rural areas in Brazil, particularly in regions with less fertile soil. By enabling profitable agriculture on marginal lands, this new model for castor farming could create new revenue streams for farmers and stimulate regional development without displacing existing food production. It aligns with a broader trend in agriculture where technology is being leveraged to maximize productivity while promoting sustainable land management.

Building on this momentum, Casterra has announced a two-pronged strategy for 2026. The first objective is commercial penetration, which will involve establishing a local subsidiary in Brazil and forging strategic partnerships with leading castor oil producers to build out the supply chain. The second is to expand its farming trials into different agricultural and climatic zones across several Brazilian states, further validating the robustness and adaptability of its castor varieties.

The Science Behind the Seed

The performance of Casterra's crop in the field is the direct result of sophisticated science in the lab. As a subsidiary of Evogene, the company has access to powerful genomic capabilities and generative AI technology. Evogene's ChemPass AI™ platform, while primarily focused on small molecule design for pharma and agriculture, reflects the parent company's deep expertise in computational biology.

This technological foundation allows Casterra to accelerate the development of elite castor seed varieties with desirable traits. Using advanced genomic analysis, researchers can identify the genetic markers associated with high oil yield, drought tolerance, disease resistance, and suitability for mechanical harvesting. This data-driven breeding process is significantly faster and more precise than traditional methods, enabling the company to develop seeds tailored for specific environments and farming systems.

This synergy between advanced genomics and practical agronomy is what differentiates Casterra's approach. It's not just about creating a better seed, but about developing an entire integrated farming system that ensures profitability for the farmer and a reliable supply for industry. This model, connecting high-tech R&D to tangible agricultural outcomes, exemplifies the future of sustainable agriculture.

Gauging the Green Credentials

The promise of castor oil extends beyond economics into its significant environmental benefits. A Life Cycle Analysis (LCA) conducted by Evogene revealed that biodiesel produced from its castor varieties could reduce greenhouse gas (GHG) emissions by a staggering 90% compared to conventional diesel in the U.S. and over 75% in Brazil. Notably, the study found that castor-based biodiesel offered 43% greater GHG savings than soybean-based biodiesel in the United States, a crucial advantage as industries face increasing pressure to report and reduce their carbon footprint.

Castor's sustainability profile is multifaceted. Its deep root system helps improve soil structure and fertility, while its natural pest resistance reduces the need for chemical pesticides. The crop's drought tolerance means it has a lower water footprint than many conventional crops, a critical factor in a world facing growing water scarcity. The ability to cultivate castor on non-arable land not only prevents deforestation but can help restore degraded soils.

As the global energy transition accelerates, these verifiable environmental credentials will become as important as a feedstock's price. With its successful Brazilian trials, Casterra has demonstrated that castor oil is not just a theoretical solution but a practical, scalable, and highly sustainable option ready to help fuel a cleaner future.