CalBio, Dairy Farmers and Chevron Announce First RNG

VISALIA, Calif.--(BUSINESS WIRE)--California Bioenergy LLC (CalBio), Chevron U.S.A. Inc. and local dairy farmers today announced their joint venture, CalBioGas LLC, successfully achieved first renewable natural gas (RNG) production from dairy farms in Kern County. The milestone underpins the partners’ commitment to provide affordable, reliable, and ever-cleaner energy to California consumers.

Manure storage on dairy farms results in the release of methane, a greenhouse gas. CalBio brings technology and operational experience to help build digesters and methane capture projects to convert this methane to a beneficial use as RNG. CalBio, dairy farmers and Chevron are providing funding for digester projects across three geographic clusters in Kern, Tulare and Kings counties. As they are completed, these projects will mitigate the dairies’ methane emissions and reduce greenhouse emissions from livestock.

The dairy biomethane projects are designed to send dairy biogas to a centralized processing facility where it will be upgraded to RNG and injected into local utility SoCalGas’ pipeline. The RNG is then marketed as an alternative fuel for heavy-duty trucks and buses.

“The project is the result of efforts of a remarkable range of stakeholders, including the California Department of Food and Agriculture, the California Energy Commission and the California Public Utility Commission. CalBio also is honored to be supported by a group of California’s dairy farmers, Farm Credit West and Chevron, California’s largest energy company,” said N. Ross Buckenham, CalBio’s CEO. “These projects bring so many win-wins – they help create local jobs, improve local air quality by producing renewable natural gas for use in low-NOX emission fleets, and reduce dairy methane emissions.”

With other recent Chevron announcements – such as the Adopt-a-Port initiative with Clean Energy Fuels – this milestone further demonstrates the company’s action areas to increase renewables in support of its business and invest in lower-carbon technologies.

“This is an exciting milestone that speaks to the capabilities and can-do attitude of our partners – CalBio and dairy farmers – to bring this RNG to the California vehicle fuels market,” said Andy Walz, president, Chevron Americas Products. “Chevron is increasing RNG in support of our business and is making targeted investments and establishing partnerships, as we evaluate many emerging sources of energy and the role they will play in our portfolio. And as a proud California company, we are pleased that local communities in the state will benefit from this investment.”

About California Bioenergy

CalBio is a leading developer of dairy digesters for generating renewable electricity and vehicle fuel in California. Founded in 2006, CalBio has worked closely with the dairy industry and state agencies to develop programs to help the state achieve its methane reduction goals while delivering a new revenue source to California dairies. For more information, visit: www.calbioenergy.com

About Chevron

Chevron U.S.A. Inc. is a subsidiary of Chevron Corporation, one of the world's leading integrated energy companies. Through its subsidiaries that conduct business worldwide, Chevron Corp is involved in virtually every facet of the energy industry. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemicals and additives; generates power; and develops and deploys technologies that enhance business value in every aspect of the company's operations. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.