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.

renewable powerrenewable power partnerships

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.

learn about Algonquin

proof is in the numbers

together we will generate

>500

megawatts of renewable energy

enough to power

400,000+

U.S. households

“Chevron intends to lead in the future of energy by developing affordable and reliable energy with less environmental impact.”

Allen Satterwhite

President, Chevron Pipeline & Power

additional wind and solar projects

using wind power in the permian basin

In May 2019, Chevron signed a 12-year, 65 megawatt power purchase agreement to supply Chevron’s West Texas Permian operations with electricity from a wind farm in West Texas. Through a separate transaction, Chevron has also purchased renewable energy credits administered by the Electric Reliability Council of Texas to meet the state’s renewable energy program requirements.

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deploying solar in lost hills, CA, oil field

Thanks to California sunshine, a 29-megawatt system of solar panels is delivering low-carbon electricity to our Lost Hills oil field in Kern County, California. In 2019, Chevron signed a power purchase agreement with commercial solar provider SunPower who built the project on Chevron land. Over the 20-year potential term, this solar project is expected to provide 80 percent of the power needs of the Lost Hills oil field.

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chevron-owned and -operated renewable projects

Our Casper Wind Farm, commissioned in 2009, turned a former refinery site near Casper, Wyoming, into an 11-turbine, 16.5 megawatt-capacity wind farm that can produce enough electricity to power approximately 13,000 U.S. homes for a year.

Chevron’s photovoltaic projects at Questa, New Mexico, and in the San Joaquin Valley, California, test and evaluate solar technologies. Project Brightfield, in Bakersfield, California, has evaluated seven photovoltaic technologies to determine the potential application of renewable power at other company-owned facilities.

biofuels

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.

our current biofuel activities

co-processing biofeedstock

Our El Segundo Refinery in California is set to become the first refinery in the U.S. to ratably co-process biofeedstock in a fluid catalytic cracker unit making gasoline, jet fuel and diesel fuel with renewable content. The refinery is expected to start supplying consumers in Southern California with biofuel products by mid-2021.

brightmark

In a joint venture with Brightmark LLC, we’re developing projects across the United States to produce renewable natural gas and 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 in California for use in vehicles operating on renewable compressed natural gas.

CalBioEnergy

In 2019, we partnered with CalBioEnergy and dairy farmers to form a joint venture company, CalBioGas LLC, that 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

In July 2020, we 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 and their import and export customers will help local communities by reducing smog-forming NOx emissions by 98 percent compared with diesel trucks.

novvi

Novvi LLC is a California-based company that engages in the development, production, marketing, and distribution of high-performance base oils from renewable sources. In 2018, Novvi and Chevron entered into an agreement to jointly develop and bring to market novel renewable base oil technologies. In 2020, Novvi reached first production of 100 percent renewable base oil from its Houston facility.

san francisco international airport (SFO)

In 2019, Chevron was a part of the SFO landmark agreement for the use of Sustainable Aviation Fuels (SAF), a lower carbon alternative to jet fuel. It was the first project of its kind to include fuel suppliers, airlines, and airport agencies. The use of SAF could reduce GHG Emissions by nearly 4.8 million tonnes per year.

renewable diesel

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).

Waste Management

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.

offsets

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).

Chevron partners with associations to enhance the global scaling-up of offsets

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.