Governments recently have mandated increased biofuels production and use as they seek to diversify their energy sources to include more renewable fuels. Bunge supplies some of the raw materials used in biofuel production, produces sugar-based ethanol in Brazil and is a minority partner in select joint ventures that manufacture and market biodiesel and corn-based ethanol.

Biodiesel is produced from vegetable oils and animal fats, most commonly rapeseed (canola) oil and soybean oil. Biodiesel can be used in its pure form or blended with petroleum diesel to run engines, boilers and other diesel-powered equipment.

Biodiesel is used predominantly in Europe and Asia, but demand is growing in North and South America and elsewhere.

Ethyl alcohol, or ethanol, is made from corn and other grains, sugar and agricultural waste. Bioethanol is made from cellulosic biomass, the primary structural component in trees, grasses and other green plants.

In the U.S., ethanol made from corn is used mainly as a gasoline additive. In Brazil, most new cars run on gasoline, ethanol made from sugar or a mixture of both.