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CalBio and dairy farmers partner with Chevron on biomethane projects

In the United States (US), Chevron U.S.A. Inc., a subsidiary of global energy major Chevron Corporation and California Bioenergy LLC (CalBio), a leading developer of dairy digesters for power and vehicle fuel in California, has recently announced a joint investment in CalBioGas LLC, a holding company with California dairy farmers to produce and market dairy biomethane as a vehicle fuel in the state.

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Chevron U.S.A. Inc. and California Bioenergy LLC (CalBio) have recently announced a joint investment in CalBioGas LLC, a holding company with California dairy farmers to produce and market dairy biomethane as a vehicle fuel in the state.

CalBioGas LLC, has also secured funding from Chevron to build infrastructure for dairy biomethane projects in California’s San Joaquin Valley, adding to the investment from dozens of dairy farmers. Chevron will also provide services to bring this product into the California vehicle fuels market.

This combination of Chevron, CalBio and California dairy farmers working together to produce and market dairy biomethane demonstrates Chevron’s commitment to finding creative, cost-effective solutions to achieve compliance with California’s Low Carbon Fuel Standard (LCFS).

Up to 18 manure digesters

Manure storage on dairy farms results in the release of methane, a highly potent greenhouse gas (GHG). CalBio brings technology, operational experience, and capital to help dairy farmers build digesters and methane capture projects to convert this methane to beneficial use as renewable natural gas (RNG).

Chevron has signed an agreement to provide funding for as many as 18 digesters across three geographic “clusters” in Kern, Tulare, and Kings counties. Once complete, these projects will significantly mitigate the dairies’ methane emissions and help make them among the most environmentally efficient and sustainable in the world.

The dairy biomethane projects are designed to send dairy biogas to a centralized processing facility where it will be upgraded to renewable natural gas (RNG) and injected into the local gas utility’s pipeline. The RNG is then marketed as an alternative fuel for heavy-duty trucks, buses, and eventually off-road and farm equipment.

CalBio is honored to be supported by some of California’s leading dairy farmers and to have Chevron, California’s largest energy company, helping us expand the development of clean, renewable compressed natural gas (R-CNG) production across the state. These projects bring so many win-wins that would not be possible without our farmers’ and Chevron’s support. While helping the environment by reducing greenhouse gases, these projects also help create local jobs and improve local air quality by producing ultra-clean fuel for new R-CNG engines said N. Ross Buckenham, CEO, CalBio.

Chevron says that it is investing in opportunities to address GHG emissions challenges and progress lower-carbon technologies, and RNG is a component of its renewable strategies.

CalBioGas represents exactly the sort of targeted investment we will make to achieve LCFS compliance and also to test the viability of alternate fuel sources. As a proud California company, we are pleased that local communities in the state will benefit from this investment and we look forward to the opportunities ahead with CalBioGas, said Mike Vomund, Vice President for Chevron Americas Products – West.

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