Chevron Pursues Opportunities in Emerging Biofuels Sector
New Biofuels Business Unit Announced at Groundbreaking Ceremony for Texas Biodiesel Plant
SAN RAMON, Calif., May 31, 2006 -- Chevron Corporation (NYSE: CVX) said it has formed a biofuels business unit to advance technology and pursue commercial opportunities related to the production and distribution of ethanol and biodiesel in the United States.
Chevron will officially announce the business unit today in Galveston, Texas, where the company is participating in a groundbreaking ceremony to inaugurate construction of one of the first large-scale biodiesel plants in the U.S. Participating in the ceremony will be Senator Kay Bailey Hutchison; Lyda Ann Thomas, mayor of Galveston; Donald Paul, vice president and chief technology officer, Chevron Corporation; and William J. Berger, chairman of the board, Galveston Bay Biodiesel.
"Biofuels are a growing component of the world's energy base and will be an active part of Chevron's efforts to help diversify the world's energy supplies. Chevron's capabilities and experience in producing and distributing high-quality fuels make us ideally positioned to pursue opportunities in this sector as it expands," said Donald Paul.
The biofuels business unit will operate within Chevron Technology Ventures (CTV), a corporate subsidiary dedicated to identifying, developing and commercializing emerging energy technologies. Chevron will leverage its broad portfolio of existing technological capabilities and assets to the company's efforts in this area.
Mike Wirth, executive vice president, Downstream, said, "Chevron is already active in biofuels, with our marketing assets and experience blending ethanol in our gasoline. We are enthusiastic about the opportunity to further extend biofuels across Chevron's integrated operations."
In the United States, Chevron currently blends about 300 million gallons of ethanol per year for use in gasoline blends. In January, the company announced it is participating in an E85 demonstration project with the state of California, General Motors and Pacific Ethanol. The project will study performance, efficiency and environmental issues over a one-year period using California-formulated E85, a renewable fuel comprising 85 percent ethanol and 15 percent gasoline.
Earlier this month, Chevron announced its investment in Galveston Bay Biodiesel (GBB). This Houston-based company is constructing a biodiesel production and distribution facility in Galveston, scheduled for completion by the end of 2006. 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 biodiesel production in the U.S. which totaled 75 million gallons in 2005.
GBB will produce biodiesel from soybeans and other renewable feedstocks and is expected to have initial production of 20 million gallons per year. 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.
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.
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Some of the items discussed in this press release are forward-looking statements about Chevron's operations. These 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 press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: May 2006