The newly established business is expected to work with food service and manufacturing customers in Europe, excluding UK and Ireland, to supply oils and ensure used cooling oil is 'efficiently collected'. Used oil will be used as a feedstock for renewable fuels.
Olleco CEO Joe Kenney said that the tie-up, which will be headquartered in Amsterdam, will increase Olleco's reach in Europe. "This is an exciting step for Olleco in Europe. The 50-50 joint venture will accelerate our expanding footprint allowing us to unlock a wider, professionalised service to the food industry that works to capture this valuable resource.
"We're delighted to partner with Bunge, a company that is agile, innovative and committed to the renewables space," he added.
Bunge is not disclosing how much will be invested in the 50-50 joint venture, a spokesperson for the group told FoodNavigator. The business will operate on a stand-alone basis however, we were told, it will “leverage both companies’ knowledge and resources”.
"We believe operating in a two-way model is efficient than each operating separately. The two businesses working together can best support our customer needs. Bunge is a leader in refined oils, and Olleco has experience in operating the two-way model. Together the businesses can develop a leading offering to best service customers through efficient distribution, competitive price and leading customer management," the spokesperson explained.
The venture is expected to benefit from Bunge's customer relationships, footprint and global expertise in vegetable oil production alongside Olleco's 'market leading' model in the supply, collection and conversion of cooking oils.
Bunge said the service will help address 'environmental and energy security challenges' in key European markets.
"We are pleased to partner with Olleco as we expand our portfolio of renewable feedstocks in Europe. Together, we share a commitment to sustainability and to finding innovative solutions to reduce carbon in our value chains," Bunge CEO Greg Heckman elaborated.
The companies are not detailing the quantity of oil they hope to divert from waste streams and use as biofuel feedstock ‘for now’.