Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:
CVX), and Bunge North America, Inc., a subsidiary of Bunge Limited
(NYSE: BG), announced today a memorandum of understanding (MOU) of
a proposed 50/50 joint venture to help meet the demand for
renewable fuels and to develop lower carbon intensity
feedstocks.
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Upon finalization of the joint venture, Chevron and Bunge’s
partnership would establish a reliable supply chain from farmer to
fueling station for both companies. Bunge is expected to contribute
its soybean processing facilities in Destrehan, Louisiana, and
Cairo, Illinois, and Chevron is expected to contribute
approximately $600 million in cash to the joint venture. Through
the joint venture, the two companies anticipate approximately
doubling the combined capacity of the facilities from 7,000 tons
per day by the end of 2024. The joint venture would also pursue new
growth opportunities in lower carbon intensity feedstocks, as well
as consider feedstock pretreatment investments.
“As the world’s largest oilseed processor, we are pleased to
expand our partnership with an energy industry leader to increase
our participation in the development of next generation, renewable
fuels. Together, we share a commitment to sustainability and
reducing carbon in the energy value chain. This relationship with
Chevron would enable Bunge to better serve our farmer customers by
accessing demand in the growing renewable fuels sector,” said Greg
Heckman, Bunge CEO.
Under the proposed joint venture arrangement, Bunge will
continue to operate the facilities, leveraging its expertise in
oilseed processing and farmer relationships to manage origination
and marketing of meal and plant-based oil. Chevron would have
offtake rights to the oil to use as renewable feedstock to
manufacture diesel and jet fuel with lower lifecycle carbon
intensity, in addition to providing market knowledge and downstream
retail and commercial distribution channels.
“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,” said Mark Nelson, executive vice president of
Downstream & Chemicals for Chevron. “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 creation of the proposed joint venture is subject to the
negotiation of definitive agreements with customary closing
conditions, including regulatory approval.
About Chevron
Chevron is one of the world’s leading integrated energy
companies. We believe affordable, reliable and ever-cleaner energy
is essential to achieving a more prosperous and sustainable world.
Chevron produces crude oil and natural gas; manufactures
transportation fuels, lubricants, petrochemicals and additives; and
develops technologies that enhance our business and the industry.
To advance a lower-carbon future, we are focused on cost
efficiently lowering our carbon intensity, increasing renewables
and offsets in support of our business, and investing in low-carbon
technologies that enable commercial solutions. More information
about Chevron is available at www.chevron.com.
About Bunge Limited
Bunge (www.bunge.com, NYSE: BG) is a world leader in sourcing,
processing and supplying oilseed and grain products and
ingredients. Founded in 1818, Bunge’s expansive network feeds and
fuels a growing world, creating sustainable products and
opportunities for more than 70,000 farmers and the consumers they
serve across the globe. The company is headquartered in St. Louis,
Missouri and has almost 23,000 employees worldwide who stand behind
approximately 300 port terminals, oilseed processing plants, grain
facilities, and food and ingredient production and packaging
facilities around the world.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
FOR THE PURPOSE OF “SAFE HARBOR” PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains forward-looking statements relating
to Chevron’s operations that are based on management's current
expectations, estimates and projections about the petroleum,
chemicals and other energy-related industries. Words or phrases
such as “anticipates,” “expects,” “intends,” “plans,” “targets,”
“advances,” “commits,” “forecasts,” “projects,” “believes,”
“approaches,” “seeks,” “schedules,” “estimates,” “positions,”
“pursues,” “may,” “could,” “should,” “will,” “budgets,” “outlook,”
“trends,” “guidance,” “focus,” “on track,” “goals,” “objectives,”
“strategies,” “opportunities,” “poised,” “potential” and similar
expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
other factors, many of which are beyond the company’s control and
are difficult to predict. Therefore, actual outcomes and results
may differ materially from what is expressed or forecasted in such
forward-looking statements. The reader should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this news release. Unless legally required, Chevron
undertakes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Among the important factors that could cause actual results to
differ materially from those in the forward-looking statements are:
changing crude oil and natural gas prices and demand for our
products, and production curtailments due to market conditions;
crude oil production quotas or other actions that might be imposed
by the Organization of Petroleum Exporting Countries and other
producing countries; public health crises, such as pandemics
(including coronavirus (COVID-19)) and epidemics, and any related
government policies and actions; changing economic, regulatory and
political environments in the various countries in which the
company operates; general domestic and international economic and
political conditions; changing refining, marketing and chemicals
margins; the company’s ability to realize anticipated cost savings,
expenditure reductions and efficiencies associated with enterprise
transformation initiatives; actions of competitors or regulators;
timing of exploration expenses; timing of crude oil liftings; the
competitiveness of alternate-energy sources or product substitutes;
technological developments; the results of operations and financial
condition of the company’s suppliers, vendors, partners and equity
affiliates, particularly during extended periods of low prices for
crude oil and natural gas during the COVID-19 pandemic; the
inability or failure of the company’s joint-venture partners to
fund their share of operations and development activities; the
potential failure to achieve expected net production from existing
and future crude oil and natural gas development projects;
potential delays in the development, construction or start-up of
planned projects; the potential disruption or interruption of the
company’s operations due to war, accidents, political events, civil
unrest, severe weather, cyber threats, terrorist acts, or other
natural or human causes beyond the company’s control; the potential
liability for remedial actions or assessments under existing or
future environmental regulations and litigation; significant
operational, investment or product changes required by existing or
future environmental statutes and regulations, including
international agreements and national or regional legislation and
regulatory measures to limit or reduce greenhouse gas emissions;
the potential liability resulting from pending or future
litigation; the company's ability to achieve the anticipated
benefits from the acquisition of Noble Energy, Inc.; the company’s
future acquisitions or dispositions of assets or shares or the
delay or failure of such transactions to close based on required
closing conditions; the potential for gains and losses from asset
dispositions or impairments; government mandated sales,
divestitures, recapitalizations, industry-specific taxes, tariffs,
sanctions, changes in fiscal terms or restrictions on scope of
company operations; foreign currency movements compared with the
U.S. dollar; material reductions in corporate liquidity and access
to debt markets; the receipt of required Board authorizations to
pay future dividends; the effects of changed accounting rules under
generally accepted accounting principles promulgated by
rule-setting bodies; the company’s ability to identify and mitigate
the risks and hazards inherent in operating in the global energy
industry; and the factors set forth under the heading “Risk
Factors” on pages 18 through 23 of the company's 2020 Annual Report
on Form 10-K and in other subsequent filings with the U.S.
Securities and Exchange Commission. Other unpredictable or unknown
factors not discussed in this news release could also have material
adverse effects on forward-looking statements
Cautionary Statement Concerning Forward-Looking
Statements
This Bunge press release contains both historical and
forward-looking statements. All statements, other than statements
of historical fact are, or may be deemed to be, forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements are not based
on historical facts, but rather reflect our current expectations
and projections about our future results, performance, prospects
and opportunities. We have tried to identify these forward-looking
statements by using words including “may,” “will,” “should,”
“could,” “expect,” “anticipate,” “believe,” “plan,” “intend,”
“estimate,” “continue” and similar expressions. These
forward-looking statements are subject to a number of risks,
uncertainties and other factors that could cause our actual
results, performance, prospects or opportunities to differ
materially from those expressed in, or implied by, these
forward-looking statements. The following important factors, among
others, could cause actual results to differ from these
forward-looking statements: the negotiation and finalization of the
definitive documentation related to the joint venture; the ability
to achieve the expected targets of the joint venture and the
ability to realize the benefits we expect to derive from it; the
outcome and effects of the Board’s strategic review; our ability to
attract and retain executive management and key personnel; industry
conditions, including fluctuations in supply, demand and prices for
agricultural commodities and other raw materials and products used
in our business; fluctuations in energy and freight costs and
competitive developments in our industries; the effects of weather
conditions and the outbreak of crop and animal disease on our
business; global and regional agricultural, economic, financial and
commodities market, political, social and health conditions; the
outcome of pending regulatory and legal proceedings; our ability to
complete, integrate and benefit from acquisitions, dispositions,
joint ventures and strategic alliances; our ability to achieve the
efficiencies, savings and other benefits anticipated from our cost
reduction, margin improvement and other business optimization
initiatives; changes in government policies, laws and regulations
affecting our business, including agricultural and trade policies,
tax regulations and biofuels legislation; and other factors
affecting our business generally. The forward-looking statements
included in this release are made only as of the date of this
release, and except as otherwise required by federal securities
law, we do not have any obligation to publicly update or revise any
forward-looking statements to reflect subsequent events or
circumstances.
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version on businesswire.com: https://www.businesswire.com/news/home/20210902005208/en/
Investor Contacts: Roderick Green Chevron
invest@chevron.com
Ruth Ann Wisener Bunge Limited 636-292-3014
Ruthann.wisener@bunge.com
Media Contacts: Tyler Kruzich Chevron 925-549-8686
tkruzich@chevron.com
Bunge News Bureau Bunge Limited 636-292-3022 news@bunge.com
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