Chevron, Bunge Sign MoU To Form Joint Venture To Create Renewable Fuel Feedstock

(RTTNews) - Chevron U.S.A. Inc., a subsidiary of Chevron Corp. (CVX), and Bunge North America, Inc., a subsidiary of Bunge Limited (BG), said that they have signed a memorandum of understanding to form a 50/50 joint venture to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks.

Upon finalization of the joint venture, Chevron and Bunge's partnership would establish a reliable supply chain from farmer to fueling station for both companies.

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.

The two companies anticipate approximately doubling the combined capacity of the facilities from 7,000 tons per day by the end of 2024.

Under the proposed joint venture arrangement, Bunge will continue to operate the facilities, leveraging its expertise in oilseed processing and farmer relationships to manage origination and marketing of meal and plant-based oil.

Chevron would have offtake rights to the oil to use as renewable feedstock to manufacture diesel and jet fuel with lower lifecycle carbon intensity, in addition to providing market knowledge and downstream retail and commercial distribution channels.