U.S. Grain Suppliers Gain Biorefinery Purchase Pledge
Barley, corn, and sorghum exporters face a guaranteed 1 million metric ton annual minimum tied to a planned UAE facility.
Updated on Nov. 6, 2026 in Agriculture
The U.S. Grains & BioProducts Council signed a memorandum of understanding with BioPower Energy on October 16, 2026, during Export Exchange 2026 in Seattle, Washington. BioPower Energy plans to build a biorefinery in the United Arab Emirates and intends to source 50% to 100% of its feedstock from U.S. suppliers.
Why it matters
The agreement points to growing demand for U.S. grains as industrial biofuel and bioproduct feedstock, not only as food and feed. For grain suppliers and agricultural exporters, a guaranteed minimum purchase commitment signals a potential new outlet for barley, corn, and sorghum volumes.
The memorandum guarantees an initial minimum of 1 million metric tons (39 million bushels) in annual purchases, with BioPower Energy intending to source 50% to 100% of its feedstock from U.S. suppliers. The U.S. Grains & BioProducts Council operates nine international offices and represents U.S. interests in 30 countries.
The players
U.S. Grains & BioProducts Council
A trade development organization that builds export markets for U.S. barley, corn, sorghum, and related products through nine international offices and representation in 30 countries.
BioPower Energy
A joint venture of Quazar Investment and Petron Scientech that plans to build, own, and operate an integrated biorefinery in the United Arab Emirates.
USDA Foreign Agricultural Service
The U.S. Department of Agriculture unit that supports American agricultural exports and trade policy, whose deputy administrator observed the signing.
The details
BioPower Energy is a joint venture of Quazar Investment and Petron Scientech, and it plans to build, own, and operate a fully integrated biorefinery in the United Arab Emirates. The memorandum of understanding signals intent to procure a large share of that facility's feedstock from American producers, with a guaranteed minimum volume that gives suppliers a baseline for planning. The Council develops export markets for U.S. barley, corn, sorghum, and related products, so this agreement is an example of its market-development work translated into a specific commercial commitment.
Timeline
October 16, 2026: memorandum of understanding signed during Export Exchange 2026 in Seattle, Washington.
Market Landscape
The agreement fits a pattern of U.S. grain groups pursuing bioproduct and industrial demand alongside traditional food and feed exports. It places U.S. feedstock inside a Gulf-region biorefinery project, a market the source describes only in terms of this single planned facility.
Grain suppliers and elevator operators should track whether the minimum purchase commitment converts into firm contracts and delivery schedules. Agricultural exporters may review how bioproduct feedstock demand compares with their existing food and feed channels.
The takeaway
The key operating insight is that bioproduct buyers are beginning to make volume commitments that agricultural suppliers can plan around. Operators should monitor whether the biorefinery moves from memorandum to construction and firm purchase contracts.
Further reading
Explore more reporting on Agriculture and how export deals reshape demand for farm commodities.
More information
Learn more about the council's work on the U.S. Grains & BioProducts Council programs information.
Source note: This article includes information reported by High Plains Journal.
