Chevron Corp. said this week that it will pay $3.15 billion to purchase Renewable Energy Group Inc., the latest in a series of initiatives by Chevron to become a leader in the renewable energy transition.
REG manufactures biodiesel and renewable diesel as a greener alternative to petroleum diesel. The acquisition, according to Chevron, combines REG’s renewable fuels production and feedstock capabilities with Chevron’s manufacturing, distribution, and commercial marketing infrastructure. The measure will help Chevron get closer to its objective of producing 100,000 barrels of renewable fuels per day by 2030.
According to Chevron Chairman and CEO Mike Wirth, REG was a creator of the renewable fuels business and has been a leading innovation ever since. He believes that by working together, both organizations can expand faster and more effectively towards energy transition.
Chevron’s effort in Richmond is also critical to the shift to greener energy. The business announced a collaboration last week to establish 30 hydrogen fuelling stations at Chevron-branded retail stores across California by 2026. Excess hydrogen capacity from the Chevron Richmond Refinery, as well as a prospective hydrogen production plant at the Republic Services dump in Richmond, will supply the fuelling stations in part.
Hydrogen is seen as a critical component in the energy transition, as it provides a zero-emission energy source for commercial and passenger vehicles. Chevron plans to create more hydrogen stations throughout the world after constructing them in California.
The firm thinks that affordable, dependable, and cleaner energy is critical to establishing a more affluent and sustainable society, and they are committed to decreasing the carbon intensity of their operations and growing lower carbon enterprises alongside their existing business lines.