Chevron and Bunge North America, agribusiness and food ingredient company, finalized an agreement to create a new company that will develop renewable fuel feedstocks to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks, company announced on Monday.
Bunge will contribute its soybean processing facilities and Chevron is expected to contribute approximately $600 million in cash to the joint venture.
Bunge will continue to operate the facilities while Chevron will offtake rights to the oil to use as renewable feedstock to manufacture diesel and jet fuel with lower lifecycle carbon intensity.
With the joint venture, the companies expect to double the combined capacity of the facilities from 7,000 tons per day by the end of 2024.
The partnership will establish a reliable supply chain from farmer to fueling station for both companies.
'Together, we share a commitment to sustainability and reducing carbon in the energy value chain,' Greg Heckman, Bunge CEO said.
'Chevron’s proposed joint venture with Bunge positions us to expand into the renewable fuel feedstock value chain, which will advance our higher returns, lower carbon strategy,' said Mark Nelson, executive VP of Downstream and Chemicals for Chevron.
By Zeynep Beyza Kilic