Bunge, CoverCress, Chevron Taking Us into the Future and into the Past

by Jim Lane (Biofuels Digest) ... When news arrived that Bunge and CoverCress signed commercial partnership to support the expansion of CCI’s CoverCress technology, a new winter oilseed crop, and that Bunge Ventures recently increased its stake in CCI through a Series C-1 round, we were suitably impressed.

Buried in the announce was the item that Chevron also acquired an ownership stake in CCI through the Series C-1 financing round that Bunge joined. That really got our attention, because Bunge and Chevron previously announced a JV to produce feedstock for renewable fuels, and many were wondering which exact direction the JV might take. Now we know a lot more.

The Bunge CCI deal

Under the commercial partnership between CCI and Bunge, CCI will supply CoverCress grain produced under contract with farmers to Bunge for processing. The strategic partnerships among Chevron, Bunge and CCI create a dedicated farm-to-fuel supply chain for the low carbon intensity oil feedstock produced from CoverCress grain.

The CoverCress backstory

CCI has converted field pennycress, a winter annual weed, into the CoverCress crop that fits into existing corn and soybean rotations. Adding a new, marketable crop into rotation on existing land during winter can provide farmers with additional revenue while also offering the ecosystem benefits of a cover crop; the CoverCress crop provides cover, decreases nitrogen losses, and improves overall soil health.

CoverCress seed allows corn and soybean farmers to add a new crop into their rotation on existing land during winter, while offering the ecosystem benefits of a cover crop, including improved soil health and carbon sequestration. It generates farm revenue as a whole grain feed ingredient, or when processed, as a low carbon intensity oil for renewable fuel production, and as a high-protein meal for animal feed. READ MORE

Excerpt from Biobased Diesel Daily: Chevron U.S.A. Inc. and Bunge North America Inc. announced May 2 the creation of Bunge Chevron Ag Renewables LLC, signaling the close of their previously announced transaction.

The new company will develop renewable fuel feedstocks leveraging Bunge’s expertise in oilseed processing and farmer relationships and Chevron’s expertise in fuels manufacturing and marketing.

The two companies first announced their intention to team up last September to establish a supply chain from farmer to fueling station. Bunge is expected to contribute its soybean processing facilities in Destrehan, Louisiana, and Cairo, Illinois, and Chevron is expected to contribute approximately $600 million in cash to the joint venture. Through the joint venture, the two companies anticipate approximately doubling the combined capacity of the facilities from 7,000 tons per day by the end of 2024. The joint venture would also pursue new growth opportunities in lower carbon intensity feedstocks, as well as consider feedstock pretreatment investments.

This February, the companies signed definitive transaction agreements on the partnership.

Since then, Chevron announced it would acquire North America’s largest biodiesel producer, Renewable Energy Group Inc., for $3.15 billion. Meanwhile, Bunge has partnered with CoverCress Inc. to commercialize the latter’s winter oilseed crop, a variety of pennycress trademarked “CoverCress.”

Chevron is targeting the production of 100,000 barrels per day of renewable diesel and sustainable aviation fuel by 2030. READ MORE