Oil giant Chevron will invest $600 million (£433m) in two soybean processing facilities to secure future feedstock for renewable fuels.
Soybean oil is considered a major feedstock for the production of biodiesel.
Chevron has signed a memorandum of understanding with the oilseed trader Bunge to expand the capacity of two existing oilseed processing facilities in the US states of Louisiana and Illinois.
The two companies anticipate approximately doubling the combined capacity of the facilities from 7,000 tonnes of soybeans per day by the end of 2024.
Under the proposed venture arrangement, Chevron would have rights to the oil to use as renewable feedstock to manufacture diesel and jet fuel with “lower lifecycle carbon intensity”.
Mark Nelson, Executive Vice President of Downstream and Chemicals for Chevron, said: “Chevron’s proposed joint venture with Bunge positions us to expand into the renewable fuel feedstock value chain, which will advance our higher returns, lower carbon strategy.”