(Credit: Chevron)Grains merchant Bunge and oil major Chevron are acquiring the Argentina-based agricultural product company Chacraservicios to further develop renewable diesel. This acquisition aims to enhance the companies' renewable energy portfolio by adding a new oil source to meet the growing demand for lower-carbon renewable feedstocks.
Chacraservicios specializes in the cultivation of Camelina sativa, a high-oil-content crop. By acquiring Chacraservicios, Bunge and Chevron plan to strengthen their global supply chains and offer a sustainable solution to meet the increasing demand for renewable feedstocks. The financial terms of the transaction were disclosed.
Renewable diesel has gained attention due to its lower carbon emissions compared to regular diesel and biodiesel. According to the U.S. Department of Energy, renewable diesel emits approximately 4% less carbon dioxide than regular diesel for the same volume.
This environmental advantage makes it an attractive choice for logistics firms and companies seeking to reduce their supply chain pollution levels.
The production of renewable diesel relies on a steady supply of oils derived from crops. The recent reduction in the estimate of planted acres of soybeans, a significant source of vegetable oil, by the U.S. Department of Agriculture highlights the importance of diversifying oil sources. Bunge has been actively partnering with Chevron and seed maker Corteva to crush oilseeds for renewable diesel and develop biofuel feedstocks.
Bunge, known as the world's largest oilseed crusher, has been making strategic moves to secure a prominent role in the expanding renewable diesel industry. This acquisition aligns with their goal of expanding lower carbon-intensity feedstocks to meet the rising demand for renewable fuels. Bunge aims to provide Chacraservicios with crush tolling and management services, ensuring the efficient processing of Camelina sativa.
Chevron's Renewable Energy Group, a subsidiary of Chevron Corporation, also recognizes the importance of agricultural innovation in driving the development of renewable fuels. By collaborating with Bunge and Chacraservicios, Chevron aims to expand its portfolio of affordable, reliable, and lower-carbon fuels.
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