Chevron bets big on clean energy
Chevron is purchasing Renewable Energy Group, which makes biodiesel and renewable diesel from agricultural waste, for US$3.15 billion in cash — its biggest alternative-fuels acquisition yet. Like other major oil firms around the globe, Chevron is facing mounting pressure from investors to reduce its carbon footprint. In response, the company said it plans to reach net-zero operation emissions by 2050, per Reuters. A central component of this strategy: reducing its reliance on oil and natural gas by upping the production of alternative fuels with lower carbon footprints.
Kevin Crowley
Oil Reporter at Bloomberg News
I interviewed Chevron CEO Mike Wirth for Bloomberg News about his $3.1 billion acquisition of biofuel producer Renewable Energy Group.
The deal not only makes Chevron one of North America’s top renewable fuel producers, he tells me, but should also be read as a statement of the oil giant’s “serious” intent to accelerate its energy transition strategy.
“This builds a leading position in the renewable fuels value chain as part of our commitment to lead in the energy transition,” Wirth said. “We’re serious about committing to a lower carbon future and we’re on a different path than many others are.”
Chevron to Buy Biofuel Company for $3.15 Billion
Deal to acquire Renewable Energy Group comes as the oil-and-gas giant seeks to invest more in lower-carbon energy sources
Chevron and its rivals face pressure to reduce the fossil-fuel-generated carbon emissions that are a main contributor to global warming.
Chevron Corp. is making one of its largest investments in renewable fuels, paying $3.15 billion to buy a company that makes diesel and other fuels from sources such as corn or cooking oil as the fossil-fuel giant faces investor pressure to invest in green energy.