Chevron Corp. announced this week it will acquire Renewable Energy Group Inc. for $3.15 billion in what is the latest in a series of moves by Chevron to become a leader the clean energy transition.
REG produces fuels such as biodiesel and renewable diesel to provide a cleaner alternative to petroleum diesel. Chevron says the acquisition combines REG’s renewable fuels production and feedstock capabilities with Chevron’s manufacturing, distribution and commercial marketing infrastructure. The move will accelerate progress toward Chevron’s goal of reaching 100,000 barrels per day of renewable fuels production capability by 2030.
“REG was a founder of the renewable fuels industry and has been a leading innovator ever since,” said Chevron Chairman and CEO Mike Wirth. “Together, we can grow more quickly and efficiently than either could on its own.”
Chevron’s work in Richmond is also playing an important role in the cleaner energy transition. Last week, the company announced a partnership to build 30 hydrogen fueling sites at Chevron-branded retail locations across California by 2026. The fueling sites will be supplied, in part, by excess hydrogen capacity at the Chevron Richmond Refinery, as well as from a future hydrogen production facility at the Republic Services landfill in Richmond.
Hydrogen is considered a key component in the energy transition, providing a zero-emission energy source for commercial and passenger cars and trucks. After building hydrogen stations across California, Chevron intends to expand their construction worldwide.
“We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world,” the company said. “We are focused on lowering the carbon intensity in our operations and seeking to grow lower carbon businesses along with our traditional business lines.”