Agribusiness Bunge North America Inc. will team up with Chevron Corp. subsidiary Chevron U.S.A. in a new renewable fuel feedstocks joint venture after definitive transaction agreements were recently signed, Bunge announced in a release this week.

“Partnering with Chevron, a global leader in energy, 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,” the chief executive officer of Bunge, Greg Heckman, said in a release. “I am confident that our shared networks, global footprint and expertise is the right partnership to build a successful long-term and low-cost enterprise that will help meet the demand for the next generation, renewable fuels.”

Two soybean processing plants owned and operated by Bunge in Louisiana and Illinois will produce 7,000 tn/day of oil for the venture by the end of 2024. In turn, Chevron U.S.A. has committed to investing $600 million to support the business.

“Chevron expects to make 100,000 barrels per day of renewable diesel and sustainable aviation fuel by 2030,” said Mark Nelson, executive vice president of Downstream & Chemicals for Chevron, in a statement. “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 and supply our transportation customers with lower lifecycle carbon intensity fuels.”

The transaction is subject to regulatory approval and other customary conditions.