Miller Magazine Issue: 147 March 2022

32 MILLER / march 2022 NEWS Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, and Bunge North America, Inc., a subsidiary of Bunge Limited, announced the signing of definitive transaction agreements to create their previously announced joint venture. The new venture will create renewable feedstocks lever- aging Bunge’s expertise in oilseed processing and farmer relationships and Chevron’s expertise in fuels manufactur- ing and marketing. The agreements are subject to custom- ary closing conditions, including regulatory approval. Bunge’s soybean processing plants in Destrehan, Louisi- ana and Cairo, Illinois will be contributed to the joint venture with Chevron contributing approximately $600 million in cash. Plans include approximately doubling the combined capacity of these facilities from 7,000 tons per day by the end of 2024. The joint venture may also explore opportunities in other re- newable 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 re- newable feedstock to manufacture transportation fuels with lower lifecycle carbon intensity. “Chevron expects to create the capacity to produce 100,000 barrels per day of renewable diesel and sustain- able 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 re- newable feedstocks in partnership with Bunge, we are posi- tioning ourselves to meet that goal and supply our transpor- tation customers with lower lifecycle carbon intensity fuels.” Bunge and Chevron to create joint venture