Bioenergy

Chevron Increases its Activity in Biofuels Sector

Chevron Corporation said it has formed a biofuels business unit to advance technology and pursue commercial opportunities related to the production and distribution of ethanol and biodiesel in the U.S.

The ethanol and biodiesel industries have been growing at a rapid clip, and this growth has not been from traditional oil and energy companies, but from smaller businesses and private ventures. This commitment is significant because it represents a rare moment where a major oil company has made a clear move into the biofuels businesses. Chevron announced the business unit at the groundbreaking of its large-scale biodiesel plant in Galveston, Texas. “Biofuels are a growing component of the world’s energy base and will be an active part of Chevron’s efforts to help diversify the world’s energy supplies,” said Donald Paul, vice president and chief technology officer of Chevron Corp. “Chevron’s capabilities and experience in producing and distributing high-quality fuels make us ideally positioned to pursue opportunities in this sector as it expands.” The biofuels business unit will operate within Chevron Technology Ventures (CTV), a corporate subsidiary dedicated to identifying, developing and commercializing emerging energy technologies. Chevron will leverage its broad portfolio of existing technological capabilities and assets to the company’s efforts in this area. “Chevron is already active in biofuels, with our marketing assets and experience blending ethanol in our gasoline,” said Mike Wirth, executive vice president, Downstream. “We are enthusiastic about the opportunity to further extend biofuels across Chevron’s integrated operations.” Downstream comprises Chevron’s supply and trading, refining, and fuels and lubricants marketing operations.