Sourcing Renewables - September 3, 2021
Chevron Joins Renewable Fuel Development Project
Chevron announced Sept. 2 a new project to increase the development of renewable fuels and lower carbon intensity feedstocks.
The energy company completed a memorandum of understanding with Bunge North America for a proposed 50/50 joint venture that would establish a reliable supply chain between farmers and fueling stations. Bunge would provide soybean processing facilities in Louisiana and Illinois, while Chevron would contribute approximately $600 million in funding.
Bunge’s facilities would manage the origination and marketing of meal and plant-based oil, while Chevron would have offtake rights to use the oil as renewable feedstock to manufacture diesel and jet fuel.
The two companies expect that the joint venture could double the combined capacity of Bunge’s facility from 7,000 tons per day by the end of 2024.
“Through our commercial work with Bunge, we have come to appreciate their strong company culture, their strategic desire to advance the production of lower carbon fuels, their commitment to capital discipline and promotion of sustainable agriculture in their supply chains,” Mark Nelson, executive vice president of Downstream & Chemicals for Chevron, said in a statement. “Chevron’s proposed joint venture with Bunge positions us to expand into the renewable fuel feedstock value chain, which will advance our higher returns, lower carbon strategy.”
The venture is now subject to negotiation and regulatory approval.
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