Dive Brief:
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Bunge and Chevron's renewable subsidiary on Wednesday acquired Argentina-based Chacraservicios S.r.l. to expand their feedstocks and biofuels capabilities.
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The companies purchased the seed business from Italy biofuels maker Adamant Group, and terms of the deal were not disclosed. Chacraservicios is focused on the cultivation of Camelina Sativa, a cover crop with high oil content and environmental upside.
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The investment is part of an ongoing joint venture between leading oilseeds producer Bunge and energy giant Chevron to develop renewable fuels and lower carbon intensity feedstocks to meet growing demand.
Dive Insight:
As climate issues intensify, corporations and government agencies are working to reduce their reliance on fossil fuels and energy sources that produce greenhouse gas emissions. One potential option is Camelina Sativa, an ancient crop dating back to the Bronze Age.
The cover crop was widely grown and used in vegetable oil until the 1940s, and later replaced by high yield crops such as canola, rapeseed and soy, according to research at the National Library of Medicine. However, there has been renewed interest in the crop as an alternative fuel source due to its high oil content and ability to grow on marginal lands with minimum requirements.
Founded in 2003, Chacraservicios has focused on the research and cultivation of Camelina Sativa for nutritional and fuel purposes. In 2019, it was purchased by Adamant Group, an early-stage investor in the company.
As part of the recent acquisition, Bunge and Chevron plan to work with Chacraservicios on meal and oil processing innovations and offer support through tolling and management services.
“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,” Natalie Merrill, senior vice president for business development with Chevron Renewable Energy Group, said in a statement.
In 2021, Chevron and Bunge entered an equal joint venture in efforts to bolster their global supply chains from farmer to fueling station. The following year, Chevron acquired Renewable Energy Group for $3.15 billion.
