Chevron and Weyerhaeuser Form Biofuels Joint Venture
Catchlight Energy LLC leverages world-class capabilities of both companies to develop renewable transportation fuels from nonfood sources
SAN RAMON, Calif., and FEDERAL WAY, Wash., Feb. 29, 2008 – Chevron Corporation (NYSE: CVX) and Weyerhaeuser Company (NYSE: WY) today announced the creation of a 50-50 joint venture company focused on developing the next generation of renewable transportation fuels from nonfood sources.
The joint venture, Catchlight Energy LLC, will research and develop technology for converting cellulose-based biomass into economical, low-carbon biofuels. The formation of Catchlight Energy is the first milestone of a biofuels alliance announced by Chevron and Weyerhaeuser in April 2007 and reflects the companies' shared view that nonfood biofuels will play an important role in diversifying the nation's energy supply.
"At Weyerhaeuser, we believe our timberlands hold solutions to important problems for people and the planet," said Miles Drake, senior vice president, Research and Development and chief technology officer for Weyerhaeuser. "Catchlight Energy represents an imaginative approach to releasing this potential as we work to develop a sustainable solution to the world's energy needs."
"Catchlight Energy brings together two leaders in their industries and leverages their strengths – from feedstocks to fuel manufacturing to marketing – to create a sustainable, economic, nonfood biofuels business at commercial scale," said Mike Wirth, executive vice president, Global Downstream for Chevron.
Michael Burnside of Chevron has been appointed chief executive officer of Catchlight. During his 33-year career with Chevron, Burnside has held a variety of positions in manufacturing, planning and analysis and finance, and has been involved with a number of joint ventures. W. Densmore Hunter of Weyerhaeuser has been named Catchlight's chief technology officer. Since joining Weyerhaeuser in 1980, Hunter has held key research, technology and manufacturing positions and currently leads the company's biofuels and bioproducts research and development efforts.
Both Chevron and Weyerhaeuser will contribute resources — including funding, background technology and employees — to Catchlight Energy. Catchlight's initial focus will be on developing and demonstrating novel technologies for converting cellulose and lignin from a variety of sources into biofuels.
Chevron and Weyerhaeuser already have separate research partnerships under way with universities, national laboratories and technology-based companies to advance the development of nonfood biofuels.
Chevron Corporation is one of the world's leading integrated energy companies with subsidiaries that conduct business across the globe. The company's success is driven by the ingenuity and commitment of approximately 59,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products and services; manufactures and sells petrochemical products; generates power and produces geothermal energy; and develops and commercializes the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.
Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2007, sales were $16.3 billion. It has offices or operations in 13 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate construction, development and related activities. Additional information about Weyerhaeuser's businesses, products and practices is available at http://www.weyerhaeuser.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this presentation are forward-looking statements about Chevron's and Weyerhaeuser's activities. Words such as "anticipates," "expects," "focused," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Chevron and Weyerhaeuser undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Published: February 2008