Feb 23, 2022

Bunge, Chevron Move Closer to Renewable Fuel JV

New venture will create renewable feedstocks by leveraging Bunge’s expertise in oilseed processing

Chevron U.S.A. Inc. and Bunge North America, Inc. have signed a definitive transaction agreements to create their previously announced joint venture.

The new venture 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.

Bunge’s soybean processing plants in Destrehan, LA, and Cairo, IL, will be contributed to the joint venture with Chevron contributing approximately $600 million in cash.

Plans include approximately doubling the combined capacity of these facilities from 7,000 tons 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,” said Greg Heckman, Bunge CEO.

“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 agreements, Bunge will operate the facilities and 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,” said Mark Nelson, executive vice president of Downstream & Chemicals for Chevron.

“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.”

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Marketwatch: Jul, 03

US Corn Price Idx: ZCPAUS.CM

open: 7.1488
high: 7.3886
low: 7.0173
close: 7.0525

US Soybean Price Idx: ZSPAUS.CM

open: 15.7324
high: 16.5525
low: 15.3323
close: 15.3637

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 9.0002
high: 9.0773
low: 8.5501
close: 8.6212

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 8.1033
high: 8.308
low: 7.749
close: 7.8078