ST. LOUIS, MISSOURI, US – Chevron USA, Inc., a subsidiary of Chevron Corp. and Bunge North America, Inc., a subsidiary of Bunge Ltd., announced on May 3 the creation of Bunge Chevron Ag Renewables LLC, signaling the close of their previously announced transaction.
The new company will develop renewable fuel feedstocks leveraging Bunge’s expertise in oilseed processing and farmer relationships and Chevron’s expertise in fuels manufacturing and marketing.
Under terms of the agreement, St. Louis-based Bunge will contribute its soybean processing facilities in Destrehan, Louisiana, US, and Cairo, Illinois, US. Chevron, San Ramon, California, US, will contribute about $600 million in cash to the joint venture, which aims to establish a reliable supply chain from farmer to fueling station for both companies. The two companies anticipate approximately doubling the combined capacity of the facilities to 7,000 tons per day by the end of 2024.
“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,” Gregory A. Heckman, chief executive officer of Bunge, said when the deal was first announced last year. “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.”
Under the agreement, Bunge will continue to operate the facilities. Chevron will have the purchase rights to the oil for use as renewable feedstock to manufacture diesel and jet fuel with lower lifecycle carbon intensity.