Bunge Ltd and Chevron Corp have acquired a seeds business in Argentina as they seek improve access to scarce feedstock needed to meet growing renewable diesel demand.
The crop trader and the energy giant bought Chacraservicios, a company that focuses on Camelina Sativa — a cover crop that contains high levels of vegetable oils, key to the production of green diesel. Terms of the transaction weren’t disclosed.
The deal comes as crop traders and energy companies seek to source low carbon feedstock to meet the growing need to produce renewable diesel. As the world transitions to cleaner forms of energy, firms are searching for crops that yield more vegetable oil.
“Agricultural innovation is powering renewable fuels development around the world, and opportunities like this are helping Chevron expand our portfolio of affordable, reliable and lower carbon fuels,” said Natalie Merrill, senior vice president for business development at Chevron’s renewable energy group.
Chacraservicios, founded in 2003, was previously owned by Italy’s Adamant Group.
by Tarso Veloso, Bloomberg
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