Mega partnership between Big Oil, Big Ag unveils new joint-venture name
Chevron U.S.A. Inc. and Bunge North America Inc. announced May 2 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.
The two companies first announced their intention to team up last September to establish a supply chain from farmer to fueling station. Bunge is expected to contribute its soybean processing facilities in Destrehan, Louisiana, and Cairo, Illinois, and Chevron is expected to contribute approximately $600 million in cash to the joint venture. Through the joint venture, the two companies anticipate approximately doubling the combined capacity of the facilities from 7,000 tons per day by the end of 2024. The joint venture would also pursue new growth opportunities in lower carbon intensity feedstocks, as well as consider feedstock pretreatment investments.
This February, the companies signed definitive transaction agreements on the partnership.
Since then, Chevron announced it would acquire North America’s largest biodiesel producer, Renewable Energy Group Inc., for $3.15 billion. Meanwhile, Bunge has partnered with CoverCress Inc. to commercialize the latter’s winter oilseed crop, a variety of pennycress trademarked “CoverCress.”
Chevron is targeting the production of 100,000 barrels per day of renewable diesel and sustainable aviation fuel by 2030.