renewable fuels and products
Renewable fuels are important products that can help reduce the life cycle carbon intensity of transportation fuels while meeting the world’s growing energy needs.
We coprocess biofeedstock in our own facilities, partner with others for RNG and CNG, and have an equity stake in producing renewable base oil.
Some examples of our projects, partnerships, and investments include:
American Natural Gas LLC
Chevron and Mercuria signed a definitive agreement to form a joint venture to own and operate a network of 60 compressed natural gas stations across the United States.
Chevron and Brightmark LLC announced the formation of a joint venture, Brightmark RNG Holdings LLC, to develop projects across the United States to produce RNG. The joint venture will fund the construction of infrastructure and the commercial operation of dairy biomethane projects in multiple states, from which we will purchase RNG and market the volumes for use in vehicles operating on renewable compressed natural gas.
We announced a memorandum of understanding with Bunge North America Inc. of a proposed 50/50 joint venture to help us meet the demand for lower life cycle carbon intensity fuels and develop renewable feedstocks. Upon finalization of the joint venture, the partnership would establish a reliable supply chain from farmer to fueling station and double the current facility capacities from 7,000 tons per day by the end of 2024.
Chevron has partnered with CalBio and dairy farmers to form a joint venture company, CalBioGas LLC, which produces and markets biomethane as a fuel for heavy-duty trucks and buses. These efforts mitigate dairy methane emissions and reduce waste. In 2020, we announced the first renewable natural-gas production from dairy farms in the California Central Valley.
Clean Energy Fuels Corporation
Chevron has partnered with California natural gas retailer Clean Energy Fuels Corporation on Adopt-a-Port, an initiative that provides truck operators serving the ports of Los Angeles and Long Beach with RNG. Truck operators participating in the program agree to fuel up at the Clean Energy stations supplied by Chevron. Truck operators and their import and export customers are expected to reduce smog-forming NOx emissions by 98% through use of RNG instead of diesel, which will help local communities by reducing smog-forming NOx emissions by 98%, compared with diesel trucks.
We are co-processing biofeedstock at our El Segundo, California, refinery and recently produced our first SAF there. Next year, we expect to increase capacity to 10 thousand barrels per day (mbd) of renewable diesel. Sixty percent of our U.S. terminals are now capable of renewable or biodiesel distribution. Leveraging our existing refining system and other anticipated actions, we expect to have the capacity to produce roughly 100 mbd of renewable diesel and SAF by 2030. We expect all of our U.S. diesel sales to have renewable or biodiesel content by the end of the decade.
Getting to Zero Coalition
Chevron has joined more than 120 companies in the Getting to Zero Coalition, a partnership between the Global Maritime Forum, the Friends of Ocean Action, and the World Economic Forum. It brings together participants from across the shipping value chain to get commercially viable deep-sea zero-emissions vessels into operation by 2030 to support the International Maritime Organization’s ambition to reduce GHG emissions from shipping by at least 50% by 2050.
Chevron and Gevo announced a letter of intent to jointly invest in building and operating one or more new facilities that would process inedible corn to produce sustainable aviation fuel, which can lower the life cycle carbon intensity of fuels used in the aviation industry.
We continue to lead in the development of renewable base oil through our patented technology and majority ownership in Novvi, a California-based company that engages in the development, production, marketing, and distribution of high-performance base oils. Together, Chevron and Novvi leverage the complementary technologies of Chevron’s expertise in hydroprocessing and Novvi’s innovative use of renewable feedstocks to enable us to integrate this renewable base oil into our lubricant product lines. We’ve developed the first commercially viable renewable automotive engine oil—Havoline Pro-RS®—with life cycle emissions that are 35% lower than to those of conventional motor oil of equal viscosity. To date, we have a portfolio of patents, including some that target fuel economy, electric vehicle fluids, and equipment life extension, all using renewable base oil.
RNG and CNG
Renewable natural gas (RNG) and compressed natural gas (CNG) projects capture methane that is currently emitted to the atmosphere and turn it into a valuable fuel, with negative carbon intensity on a life cycle basis under the California Low Carbon Fuel Standard. Our primary focus is on lower life cycle carbon intensity gas from dairy feedstocks with farms that have the scale and proximity to natural gas pipelines to enable a commercial project. Chevron completes the value chain by getting the natural gas to customers. We expect to diversify our feed mix over time, likely to include wastewater and landfill gas. In renewable natural gas, we’re ahead of our plan to grow RNG production tenfold by 2025.