Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE:
CVX), and California Bioenergy LLC (CalBio) announced a joint
investment in their second holding company to produce and market
dairy biomethane as a renewable natural gas (RNG) transportation
fuel in California. At signing, the holding company, CalBioGas
Hilmar LLC, secured initial funding from Chevron to build
infrastructure for dairy biomethane projects in California’s Merced
County.
Manure storage on dairy farms results in the release of methane,
a highly potent greenhouse gas. CalBio brings technology and
operational experience to help dairy farmers build digesters and
methane capture projects to convert this methane to a beneficial
use as renewable natural gas, which is considered carbon negative
on a lifecycle basis under California’s Low Carbon Fuel Standard.
Per the agreement, Chevron will provide additional funding for as
many as seven digesters and one central upgrading facility across a
cluster of dairy farms in Merced County.
The cluster of digesters has been awarded California Department
of Food and Agriculture grants, which must be augmented with
additional capital to complete the projects. When complete –
expected in 2023 – Chevron will take 100 percent of the renewable
natural gas produced to market in the California vehicle fuels
market.
“This project brings together support from many groups,
including seven California Dairy farmers, who are national leaders
in milk and cheese production; Chevron, one of California’s largest
energy companies; and grant funding from the California Department
of Food and Agriculture. The strong support from these partners
will help California with its emission reduction targets,” said
Neil Black, president of CalBio. “These projects are also
benefiting the local community through job creation and protecting
local air and water quality.”
As part of its lower carbon objectives, Chevron is complementing
the strength of its traditional products business with new
offerings that help customers support a lower carbon future. Carbon
negative renewable natural gas produced from dairy biomethane is an
essential part of its portfolio of solutions.
“We are excited to continue our partnership with CalBio and work
with local communities and farmers to develop lower carbon fuel
solutions,” said Andy Walz, president of Americas Fuels &
Lubricants for Chevron. “The investment underscores our commitment
to produce 40,000 MMBTU/D of RNG by 2030 and grow the lower carbon
businesses that we believe will be a bigger part of the
future.”
ABOUT CALIFORNIA BIOENEGY
CalBio is a leading developer of dairy digesters for generating
renewable electricity and vehicle fuel in California. Founded in
2006, CalBio has worked closely with the dairy industry and state
agencies to develop programs to help the state achieve its methane
reduction goals while delivering a new revenue source to California
dairies. For more information, visit: www.calbioenergy.com
ABOUT CHEVRON
Chevron is one of the world’s leading integrated energy
companies. We believe affordable, reliable, and ever-cleaner energy
is essential to achieving a more prosperous and sustainable world.
Chevron produces crude oil and natural gas; manufactures
transportation fuels, lubricants, petrochemicals and additives; and
develops technologies that enhance our business and the industry.
We are focused on lowering the carbon intensity in our operations
and growing lower carbon businesses along with our traditional
business lines. More information about Chevron is available at
www.chevron.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20221006005276/en/
CalBio Ty Korenwinder
tkorenwinder@calbioenergy.com t. (559) 623-5824
Chevron Tyler Kruzich
TKruzich@chevron.com t. (925) 549-8686
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