ST. LOUIS, MISSOURI, US — Bunge Ltd. on Feb. 22 signed a definitive agreement with Chevron Corp. to create a 50/50 joint venture to help meet demand for renewable fuels and to develop lower carbon intensity feedstocks. Financial terms of the transaction, which was first announced in September 2021, were not disclosed.

Under terms of the agreement, St. Louis-based Bunge will contribute its soybean processing facilities in Destrehan, Louisiana, US, and Cairo, Illinois, US. Chevron, San Ramon, California, US, will contribute about $600 million in cash to the joint venture, which aims to establish a reliable supply chain from farmer to fueling station for both companies. The two companies anticipate approximately doubling the combined capacity of the facilities to 7,000 tons per day by the end of 2024.

The companies also said they may 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 Gregory A. Heckman, chief executive officer of Bunge. “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 agreement, Bunge will continue to operate the facilities. Chevron will have the purchase rights to the oil for use as renewable feedstock to manufacture diesel and jet fuel with lower lifecycle carbon intensity.

“Chevron expects to create the capacity to produce 100,000 barrels per day 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.”