Chevron and Bunge North America announced the signing of definitive transaction agreements to create their previously announced JV. The new venture will create renewable feedstocks leveraging Bunge’s experience in oilseed processing and farmer relationships and Chevron’s experience in fuels manufacturing and marketing. The agreements are subject to customary closing conditions, including regulatory approval.

Bunge’s soybean processing plants in Destrehan, Louisiana and Cairo, Illinois will be contributed to the JV with Chevron contributing approximately $600 MM. Plans include approximately doubling the combined capacity of these facilities from 7,000 tpd by the end of 2024. The JV 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; 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 bpd 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.”