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Chevron and Bunge plan to produce renewable fuel raw materials in a joint venture

 Last Update: 2021-09-12
 Source: Internet
 Author: User

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Sinochem News reported on September 3, according to Axioms Energy, Chevron America, a subsidiary of Chevron Corporation, and Bunge North America, a subsidiary of Bunge, today announced that they have reached a memorandum of understanding (MOU).
, Proposed to establish a 50/50 joint venture to help meet the demand for renewable fuels and develop low-carbon-strength raw materials
.

After the joint venture is finalized, the partnership between Chevron and Bunge will establish a reliable supply chain from farmers to gas stations for the two companies
.

Bunge is expected to provide soybean processing facilities in Desterham, Louisiana and Cairo, Illinois, and Chevron is expected to provide approximately US$600 million in cash to the joint venture

Bunge CEO Greg Heckman said: “As the world’s largest oilseed processor, we are very pleased to expand our partnership with leaders in the energy industry and increase our participation in the development of next-generation renewable fuels
.

We are committed to The sustainability of the energy value chain and the reduction of carbon emissions

Under the proposed joint venture arrangement, Bunge will continue to operate these facilities, leveraging its expertise in oilseed processing and farmer relations to manage the origin and marketing of meals and vegetable oils
.

In addition to providing market knowledge, downstream retail and commercial distribution channels, Chevron will also obtain the right to purchase the oil as a renewable raw material for the production of diesel and aviation fuel with low life cycle carbon intensity

Mark Nelson, Executive Vice President of Chevron Downstream Chemicals, said: "Through our business cooperation with Bunge, we understand their strong corporate culture, their strategic desire to promote low-carbon fuel production, their commitment to capital discipline, and Promoting sustainable agriculture in the supply chain
.

The proposed joint venture between Chevron and Bunge allows us to expand into the renewable fuel feedstock value chain, which will advance our higher return, low-carbon strategy

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