renewable energyincreasing renewables and offsets

Affordable, reliable, ever-cleaner energy is essential to achieving a more prosperous and sustainable world. We are investing in renewable fuels, products and power to reduce the carbon intensity of our operations and make energy and global supply chains more sustainable. We are increasing the use of renewables in a number of our products, with the goal to reduce lifecycle emissions, in an effort to help our customers achieve their lower-carbon goals. We will actively work with customers around the world to achieve their own lower-carbon goals by providing verified, high-quality offsets that create measurable impact in helping to build the lower-carbon world we all desire.

We are focused on increasing renewable power in support of our business where it is reliable, scalable and cost-efficient and lowers our carbon intensity. Through our partnership with Algonquin Power & Utilities Corp., we will codevelop wind and solar projects that will help power Chevron operations around the world.

This partnership unites Algonquin’s technical and operations renewable power expertise with Chevron’s scale, land and local knowledge to enable faster, more cost-effective renewable power solutions. The initial projects are focused on Chevron operations in the U.S. Permian Basin (Texas and New Mexico), Argentina, Kazakhstan and Western Australia.

Biofuels, such as renewable diesel, can play an important role in reducing the lifecycle carbon intensity of transportation fuels while meeting the world’s growing energy needs. At Chevron, we are increasing our pursuit of renewable opportunities and seeking to make them scalable, sustainable, and affordable for consumers. Over the next few years, we expect to invest more than $150 million to advance our bio-based activities.

Biofuels that complement conventional transportation fuels, such as renewable diesel, can play an important role in reducing the carbon intensity of transportation fuels while meeting the world’s growing energy needs. Renewable diesel, also known as biomass-based diesel, is a hydrocarbon diesel vehicle fuel produced from non-petroleum renewable resources such as vegetable oils (soy, corn, canola, etc.), animal and poultry fat, used cooking oil, municipal solid waste, and wastewater sludges and oils. In 2017, Chevron began to distribute diesel fuel containing between 6 and 20 percent renewable diesel from some of our California fuel terminals. In April 2020, we began to supply Chevron-branded B20 diesel to commercial customers at Fontana Truck Stop Centers in California. B20 diesel contains biodiesel (up to 20 percent), renewable diesel (up to 20 percent) and fossil diesel (as little as 60 percent).

 

Already a leader in recycling, Waste Management (WM) now powers some of its trucks with gas emitted by its cargo. At Waste Management’s landfill gas-to-energy facilities, methane produced by decomposing trash is captured and used as an alternative fuel. More than half of the landfill gas collected at WM facilities goes to beneficial-use projects, making it North America’s leader in the space. Although much of WM’s landfill gas produces electricity, the Houston-based company is also a leader in converting landfill gas into natural gas fuels. Renewable natural gas (RNG) produced from processed landfill gas now fuels more than 33 percent of the company’s natural gas trucks. In 2018, Chevron and WM signed an agreement for Chevron to purchase gas produced by WM and ensure supply to WM’s trucks. “Chevron is a legacy supporter of our renewable natural gas program and recently increased that support by partnering with WM Renewable Energy to purchase the RNG produced at our American landfills,” said Randy Beck, senior director of renewable energy at WM. “This move furthers our commitment to each other, but more importantly, our commitment to sustainability initiatives.”

Chevron has applied and is evaluating emerging technologies that can be integrated into our businesses to reduce energy use, reduce carbon emissions and create new options for existing assets. Read more about how we are investing in low-carbon technologies.

In multiple lower-carbon scenarios, offsets are expected to make up a notable portion of global reductions, especially in sectors that do not have cost-effective reduction opportunities or for activities that are hard to abate. They are a complementary lever in our multipronged strategy to drive down our GHG-emissions intensity and can provide a mechanism for our customers to achieve their emissions reduction goals. Offsets can provide a path toward avoiding and removing emissions. Additionally, they provide an indirect link between countries and companies to collaborate in achieving the goals of the Paris Agreement. We participate in offsets markets in Colombia, the United States, and Canada, and partner with associations to enhance the global scaling-up of offsets, particularly those from natural climate solutions (NCSs).

World Bank
Chevron is party to a memorandum of understanding with the World Bank. The World Bank’s goal is to enhance global climate ambitions in mitigation actions and activities to facilitate the development of carbon and climate markets and associated infrastructure based on emerging international and national regulatory frameworks. Specifically, we seek to collaborate on activities that promote the establishment by the World Bank of facilities that may generate, warehouse, acquire, sell, and/or otherwise transfer mitigation outcomes in support of the Paris Agreement.

Institute of International Finance Taskforce on Scaling Voluntary Carbon Markets
Chevron is a consultative group member of the Institute of International Finance Taskforce on Scaling Voluntary Carbon Markets (TSVCM). A large, transparent, verifiable, and robust voluntary carbon market can help deliver carbon-reduction goals and is key to ensuring the integrity of reductions. The TSVCM brings together experts across the carbon market value chain to help build consensus on how best to scale up voluntary carbon markets.

Acorns and One Tree Planted
In collaboration with Acorns, a saving and investing app in the United States, Chevron is piloting a new program in California to have five trees planted via the One Tree Planted organization every time a customer fills up at the pump. While not an offset credit–generating activity, the program provides an opportunity to better understand consumer interest in offsetting emissions from use of our products.

Cautionary Statement