Bunge, Chevron acquire Argentina's Chacraservicios to meet renewable diesel demand
(Reuters) - Grains merchant Bunge and oil major Chevron said on Wednesday they have acquired Argentina-based agricultural product company Chacraservicios, as the companies look to expand their renewable energy footprint.
Chacraservicios, which is focused on the cultivation of Camelina sativa, a crop with high oil content, will contribute to Bunge and Chevron's global supply chains by adding a new oil source to meet the growing demand for lower carbon renewable feedstocks, the companies said.
Financial details of the transaction were not disclosed.
Renewable diesel emits lesser emissions by roughly 4.2% for carbon dioxide from the same volume of regular diesel, according to the U.S. Department of Energy, when compared with both biodiesel and regular diesel. That makes it attractive to logistics firms and other companies seeking to lower their supply chain pollution levels.
Expanding production of renewable diesel depends on increasing the supply of oils made from crops. The U.S. Department of Agriculture on Friday cut its estimate of how many acres of soybeans, a key source of vegetable oil, had been planted.
Bunge has in the past two years entered partnerships with Chevron to crush oilseeds for renewable diesel, and with seedmaker Corteva to tailor crops for biofuel feedstocks.
Bunge, the world's biggest oilseed crusher, last month agreed to acquire Viterra in a deal that would help it secure a larger role in the expanding renewable diesel industry.
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