By Colin Kellaher

 

Chevron Corp. and Bunge Ltd. on Thursday unveiled plans to form a joint venture to help meet demand for renewable fuels and to develop lower carbon intensity feedstocks.

Under the proposed venture, St. Louis agribusiness giant Bunge would contribute its soybean processing plants in Destrehan, La., and Cairo, Ill., while Chevron would chip in around $600 million in cash, the companies said.

Bunge would continue to operate the plants, managing the origination and marketing of meal and plant-based oil, while San Ramon, Calif., energy giant Chevron would have offtake rights to the oil to use as renewable feedstock to make diesel and jet fuel with lower lifecycle carbon intensity.

The two companies said they expect to roughly double the combined capacity of the Bunge plants from the current 7,000 tons a day by the end of 2024.

Bunge and Chevron said creation of the venture is subject to the negotiation of definitive agreements, along with regulatory approval.

 

Write to Colin Kellaher at colin.kellaher@wsj.com

 

(END) Dow Jones Newswires

September 02, 2021 08:35 ET (12:35 GMT)

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