Chevron Buys into Renewable Fuels and Carbon Capture Firms
Major US-based multinational energy company Chevron has agreed to buy Renewable Energy Group (REG) in an all-cash transaction valued at $3.15 billion. Both companies’ boards of directors have approved the deal, which is expected to close in the second half of 2022. REG shareholders have yet to give their approval.
“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.”
The acquisition combines REG’s growing renewable fuels production and leading feedstock capabilities with Chevron’s large manufacturing, distribution and commercial marketing position.
Chevron said the acquisition is expected to accelerate progress toward its goal to grow renewable fuels production capacity to 100,000 bbl/day by 2030 and brings additional feedstock supplies and pre-treatment facilities.
Separately, Chevron has made a second investment in Carbon Clean, having initially invested in the carbon capture company in February 2020.
According to Chevron, the size and cost of installing carbon capture technology has been a barrier to adoption. It added that Carbon Clean’s technology is designed to reduce the costs and physical footprint required for carbon capture and its technology and fully modular construction also aims to reduce site disruption and facilitate faster permitting.
“We are working to remove the biggest barriers to the adoption of widespread industrial carbon capture. It is vital that we decarbonize hard-to-abate sectors while developing new low-carbon technologies. This latest investment and our work with partners, such as Chevron, will provide us with the opportunity to deliver exponential growth in carbon capture and meet ever rising demand,” said Carbon Clean’s co-founder and CEO Aniruddha Sharma.
As part of the new investment, the companies are seeking to develop a carbon capture pilot for Carbon Clean’s CycloneCC technology on a gas turbine in San Joaquin Valley, California. Chevron is targeting 25 million t/y of CO₂ in equity storage by the end of this decade, with a focus on developing regional hubs that leverage its existing and emerging partnerships with customers, governments, and industry.
Author: Elaine Burridge, Freelance Journalist
