Leading US energy company Chevron and global agribusiness giant Bunge have finalised their oilseed feedstock venture.

As part of the Bunge Chevron Ag Renewables joint venture, the companies had started work on a new oilseed processing plant next to their existing processing facility on the Gulf Coast in Destrehan, Los Angeles, Bunge said on 4 March.

Due to its flexible design, Bunge said the plant could process soyabeans as well as soft seeds, including novel winter oilseed crops, such as winter canola and CoverCress.

Expected to become operational in 2026, the processing facility would help Bunge Chevron Ag Renewables meet increased market demand for renewable fuel feedstocks and would also produce meal products, Bunge said.

“This new facility is another step in our long-term strategy to improve our capabilities at scale for the renewable fuels market and to reduce the carbon intensity of our own and our customers’ value chains,” Bunge’s senior vice president, Renewable Fuels, Luciano Salvatierra said.

Bunge Chevron Ag Renewables’ focus is on developing renewable fuel feedstocks by combining Bunge’s expertise in oilseed processing and farmer relationships and Chevron’s expertise in renewable fuels production and marketing.

Under the joint venture agreement, Bunge would operate the joint venture’s processing plants in Destrehan and Cairo, Illinois, and Chevron has purchase rights for the oil to use as a feedstock to manufacture transportation fuels with lower lifecycle carbon intensity.

Chevron produces crude oil and natural gas, and manufactures transportation fuels, lubricants, petrochemicals and additives.

Bunge is a leading oilseed processor and producer and supplier of speciality plant-based oils, fats and protein. The company’s products are used in a wide range of applications, such as animal feed, cooking oils and flours, as well as bakery and confectionery, dairy fat alternatives, plant-based meat and infant nutrition.

Headquartered in St Louis, Missouri, the company’s global network of facilities spans six continents and includes grain elevators, oilseed processing plants and port terminals.