ExxonMobil and Global Clean Energy Holdings Sign Agreement for Renewable Diesel
12 August 2020 - 1:15AM
Business Wire
- Global Clean Energy Holdings to supply renewable diesel from
Bakersfield biorefinery
- Renewable diesel can significantly reduce life-cycle greenhouse
gas emissions
- Agreement is for the purchase of 2.5 million barrels per year
for five years
ExxonMobil has signed an agreement with Global Clean Energy
Holdings to purchase 2.5 million barrels of renewable diesel per
year for five years from a converted California refinery starting
in 2022.
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the full release here:
https://www.businesswire.com/news/home/20200811005575/en/
The renewable diesel will be sourced from a refinery acquired by
Global Clean Energy in Bakersfield, California, which is being
retooled to produce renewable diesel from Global Clean Energy’s
patented varieties of camelina, a fallow land crop that does not
displace food crops, and other non-petroleum feedstocks. Following
scheduled production startup in 2022, ExxonMobil plans to
distribute the renewable diesel within California and potentially
to other domestic and international markets.
“Our agreement with Global Clean Energy builds on ExxonMobil’s
longstanding efforts to develop and offer products that help meet
society’s energy needs while reducing environmental impacts,” said
Bryan Milton, president of ExxonMobil Fuels and Lubricants Company.
“Chemically similar to petroleum-based diesel, renewable diesel can
be readily blended for use in engines on the market today.”
“Our relationship with ExxonMobil is a perfect fit for Global
Clean Energy and the Bakersfield biorefinery because it leverages
ExxonMobil’s scale and unrivaled market perspective to unlock value
for both companies,” said Richard Palmer, CEO of Global Clean
Energy Holdings. “By combining upstream feedstock supply and
downstream production, we are moving toward the fully integrated
production model pioneered by ExxonMobil.”
In addition to camelina, various non-petroleum feedstocks,
including used cooking oil, soybean oil, distillers’ corn oil and
other renewable sources will be refined to produce the renewable
diesel.
Based on analysis of California Air Resources Board (CARB) data,
renewable diesel from various non-petroleum feedstocks can provide
life-cycle greenhouse gas emissions reductions of approximately 40
percent to 80 percent compared to petroleum-based diesel.1
About ExxonMobil
ExxonMobil, one of the largest publicly traded international
energy companies, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products, and its chemical company is one of
the largest in the world. To learn more, visit exxonmobil.com and
the Energy Factor.
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About Global Clean Energy
Global Clean Energy Holdings is a leading developer of
sustainable, non-food energy crops for use in biofuels. GCEH’s
wholly owned subsidiary, Sustainable Oils, is the leading developer
of camelina, a fast-growing, low input, dryland farmed rotation
crop. As it is cultivated exclusively on unirrigated fallow land,
camelina does not displace food or create indirect land use change.
It also allows farmers to improve total farm economics through
better overall asset utilization.
Through a financing partnership with Orion Energy Partners, GCM
Grosvenor and Voya Investment Management, Global Clean Energy
expanded into downstream production with the acquisition of the
Bakersfield facility. Once production commences in 2022, the
Bakersfield biorefinery will be the only integrated farm-to-tank
renewable diesel producer of its kind, processing both camelina—a
proprietary non-food, ultra-low carbon intensity and purpose-grown
feedstock—as well as traditional biofuel feedstocks such as plant
oils and waste products. To learn more, visit gceholdings.com.
Cautionary Statement: Statements of
future events, plans or product offerings in this release are
forward-looking statements. Actual future results, including
product offerings, refinery start-up dates, delivery timing.
available capacity, and the impact and results of new technologies
on product efficiency and life-cycle emission reductions could vary
depending on the outcome of general business conditions; further
research and testing; the development and competitiveness of
alternative technologies; the ability to scale pilot projects on a
cost-effective basis; political and regulatory developments; and
other factors discussed in this release and under the heading
“Factors Affecting Future Results” on the Investors page of
ExxonMobil’s website at exxonmobil.com.
__________________
1 California Air Resources Board Petroleum Diesel Carbon
Intensity: Low Carbon Fuel Standard Regulation, Table 7-1:
https://ww2.arb.ca.gov/sites/default/files/2020-07/2020_lcfs_fro_oal-approved_unofficial_06302020.pdf
California Air Resources Board Renewable Diesel Certified Carbon
Intensities:
https://ww2.arb.ca.gov/resources/documents/lcfs-pathway-certified-carbon-intensities
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