Chevron, Bunge Plan Venture to Create Renewable Fuel Feedstocks
September 02 2021 - 8:50AM
Dow Jones News
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)
Copyright (c) 2021 Dow Jones & Company, Inc.
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