An agreement to form a new renewable fuel joint venture has been signed between Bunge North America and Chevron USA, the companies announced.

As part of the joint venture, Bunge will contribute its soyabean processing plants in Destrehan, Louisiana, and Cairo, Illinois, to the joint venture, while Chevron will contribute US$600M in cash, according to the 22 February statement.

Plans included approximately doubling the combined capacity of the two facilities from 7,000 tonnes/day by the end of 2024, the companies said, while the joint venture could also explore opportunities in other renewable feedstocks, as well as in feedstock pre-treatment.

The joint venture, which was first announced last September, was subject to regulatory approval, the 22 February statement said.

“Partnering with Chevron… 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,” Bunge CEO Greg Heckman said.

Under the agreement, Bunge would operate the facilities while Chevron would have purchase rights for the oil for use as a renewable feedstock to manufacture transportation fuels with lower life-cycle carbon intensity, the companies said.

Chevron expected to create the capacity to produce 100,000 barrels/day of renewable diesel and sustainable aviation fuel by 2030, company executive vice president of downstream & chemicals Mark Nelson said.

“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,” he added.

California-headquartered Chevron produces crude oil and natural gas and also manufactures transportation fuels, lubricants, petrochemicals and additives.

A leading oilseed processor and producer and supplier of speciality plant-based oils and fats, Missouri-headquartered Bunge operates 300 facilities in more than 40 countries.