Bunge North America has partnered with the Renewable Energy Group (REG) for the production of biodiesel and has taken a minority stake in the company.
Bunge North America, which supplies food ingredients and animal feed, did not disclose the financial details of the deal. The company said that it will supply raw material, risk management and logistics expertise critical to the growth and expansion of REG.
Headquartered in Ralston, Iowa, REG is the biodiesel industry leader of B100 sales and has produced and sold biodiesel for more than ten years through its predecessor companies.
Chairman and CEO Jeff Stroburg said: Producing high quality biodiesel is only the first step; getting biodiesel to our customers when and where they need it is a key factor in creating a successful distribution channel.
The biodiesel company intends to expand its production facilities, which will now be located at Bunge oilseed processing facilities. Bunge North America president and CEO Carl Hausmann said: Bunge’s involvement in REG provides us an opportunity to create a strategic alliance with a market leader in the fast growing biofuels industry. It also provides us with a good balance so that we can effectively serve the food, feed and fuel markets.