Chevron Invests in Large-Scale Texas Biodiesel Facility
Plant will Produce Clean-Burning Fuel From Soybeans and Other Renewable Resources
SAN RAMON, Calif., May 11, 2006 -- Chevron Corporation (NYSE: CVX) today announced it has invested through a subsidiary in a Texas-based company that is building one of the first large-scale biodiesel plants in the United States. The facility will have the potential to produce 100 million gallons per year of this clean-burning renewable fuel – an amount that would more than double the current production volume of biodiesel in the United States.
Chevron, through its subsidiary, Chevron Technology Ventures LLC (CTV), has taken an equity position in Galveston Bay Biodiesel LP (GBB). The Houston-based company is constructing a biodiesel production and distribution facility in Galveston, Texas, scheduled for completion by the end of 2006.
GBB will produce biodiesel from soybeans and other renewable feedstocks. GBB has the option to sell pure biodiesel or biodiesel blended with off-road or on-road diesel into marine, commercial, trucking and industrial markets in the Galveston and Houston metropolitan areas.
"This investment is another example of how Chevron takes a proactive, practical approach toward the development of emerging new energy sources," said Don Paul, vice president and chief technology officer, Chevron Corporation. "We believe biofuels are a component of the diversification of the fuel supply to meet future energy demand."
GBB will have initial production of 20 million gallons per year, representing almost a 27 percent increase in total U.S. biodiesel production of 75 million gallons in 2005. The facility has the capability to expand operations to produce 100 million gallons of fuel per year.
"The biodiesel industry in North America is at an early stage of development, typified by small operations producing small quantities of fuel. This is an opportunity to engage in one of the first large-scale biodiesel production operations, providing renewable fuel to industry in Galveston, Houston and surrounding areas," said Dana Flanders, president of CTV.
CTV holds a 22 percent interest in GBB. Other investors are Contango Capital Biofuels Partners LP, Galveston Bay Biodiesel Management LLC, Sultex LLC, Mobius Risk Group LLC, and Beaver Creek Fund, Ltd.
About Chevron's Commitment to Emerging Energy Technologies
Chevron is investing across the energy spectrum to develop energy sources for future generations by expanding the capabilities of today's alternative and renewable energy technologies. Since 2000, Chevron Corporation through its various subsidiaries has invested more than $1 billion in renewable energy projects and in delivering energy efficiency solutions. Focus areas include geothermal, hydrogen, biofuels, advanced batteries, as well as wind and solar technologies. Chevron is the largest renewable energy producer among global oil and gas companies, producing 1,152 megawatts of renewable energy, primarily from geothermal operations in Indonesia and the Philippines.
About Chevron Technology Ventures
Chevron Technology Ventures LLC, a subsidiary of Chevron Corporation, identifies, develops and commercializes emerging technologies and new energy systems including hydrogen-related technologies, advanced energy storage technologies, renewable energy and nanotechnology.
Chevron is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing, and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.
Updated: May 2006