Chevron has become a major player in renewable fuels through recent fuel deals and a partnership with global engine giant Cummins.
Chevron recently announced an agreement with Cummins to provide renewable natural gas for Walmart trucks that will be powered by Cummins new X15N natural gas engine.
Walmart will field-test the trucks at its distribution center in Fontana, California, with Chevron supplying the trucks with compressed natural gas linked to renewable natural gas.
“Walmart’s collaboration with Chevron and Cummins on the new Cummins 15-liter natural gas engine is one of many technologies we are testing to reach zero emissions in our fleet, part of our broader goal to achieve zero emissions in our operations by 2040,” said Luke McCollum, vice president of Supply Chain Sustainability at Walmart. “Testing CNG linked to renewable natural gas marks a significant stepping stone for Walmart’s path to zero emissions transportation.”
‘A leading U.S. renewable fuel company’
Chevron’s stake in renewable fuels grew overnight through two major acquisitions.
A recent joint venture between Chevron and Mercuria Energy Trading led to the two companies buying American Natural Gas, a Beyond6 company, and its 60 compressed natural gas stations in 17 states across the country. Beyond6 plans to expand its fueling network and supply it with renewable natural gas (RNG).
“Our goal is to grow our RNG value chain, all the way from production to distribution,” Chevron said in a company statement. “This deal complements our previously announced plan to open more than 30 Chevron-branded CNG stations by 2025.”
Chevron’s bigger leap into renewables followed its acquisition last month of Renewable Energy Group, a large U.S. producer of biodiesel, renewable diesel and other fuels.
Buying the Iowa-based REG, according to Chevron, made it a “leading U.S. renewable fuel company.” The newly named Chevron Renewable Energy Group expects to produce upwards of 100,000 barrels of renewable fuel per day by 2030.
In addition to biodiesel and renewable diesel, Chevron Renewable Energy Group also produces gasoline and ethanol blends, aviation fuel, renewable naphtha, heating oil, methyl esters and renewable propane (a byproduct of renewable diesel production.).