In the United States (US), Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, one of the world’s largest integrated energy companies, and Bunge North America, Inc., a subsidiary of Bunge Ltd have announced the signing of definitive transaction agreements to create their previously announced feedstock joint venture.
The new joint venture, first announced in September 2021, will create renewable feedstocks leveraging Bunge’s expertise in oilseed processing and farmer relationships and Chevron’s expertise in fuels manufacturing and marketing.
The agreements are subject to customary closing conditions, including regulatory approval.
Double processing capacity
Bunge’s soybean processing plants in Destrehan, Louisiana (LA), and Cairo, Illinois (IL), will be contributed to the joint venture with Chevron contributing approximately US$600 million in cash.
Plans include approximately doubling the combined capacity of these facilities from 7 000 tonnes per day by the end of 2024. The joint venture may also explore opportunities in other renewable feedstocks, as well as in feedstock pretreatment.
Partnering with Chevron, a global leader in energy, is a significant step forward in building the capability to make changes at scale to help reduce carbon in our own and our customers’ value chains. I am confident that our shared networks, global footprint, and expertise is the right partnership to build a successful long-term and low-cost enterprise that will help meet the demand for next-generation, renewable fuels, said Greg Heckman, Bunge CEO.
Chevron targeting 100 000 barrels per day capacity
Under the agreements, Bunge will operate the facilities; Chevron will have purchase rights for the oil to use as a renewable feedstock to manufacture transportation fuels with lower lifecycle carbon intensity.
Chevron expects to create the capacity to produce 100 000 barrels per day of renewable diesel and sustainable aviation fuel by 2030. By taking this first step in securing a predictable supply of renewable feedstocks in partnership with Bunge, we are positioning ourselves to meet that goal and supply our transportation customers with lower lifecycle carbon intensity fuels, said Mark Nelson, EVP of Downstream & Chemicals for Chevron.
