A unit of Chevron CVX announced a partnership with the waste management firm, Brightmark Energy, to manufacture and market dairy biomethane, which is a type of a renewable natural gas (“RNG”), containing methane emissions. The drive comes as fossil-fuel manufacturers are under intense pressure to lower greenhouse gas emissions to mitigate climate change.

The joint venture will provide funds for the infrastructural developments and commercial transactions of dairy biomethane projects in multiple states of the United States. Chevron will purchase the natural gas produced from these projects to market as transportation fuel. The natural gas is made from emissions from cattle burps. During the digestive process, sheep and cattle release methane, which is used to produce RNG for vehicles.

Chevron’s objective is to improve the development process of reliable and affordable energy and to invest in companies addressing greenhouse gas emissions as stated by Andy Walz, president of Americas Products for Chevron. Currently, the company is working on advancing the use of renewables, making targeted investments and establishing partnerships in emerging sources of energy.

On its part, Brightmark is planning to attain a global net-zero carbon future. Importantly, the company organizes lifecycle carbon-negative projects all over the world to improve ecological health with significantly less waste and for economical advancement.

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Chevron, headquartered in San Ramon, CA, is one of the largest publicly traded oil and gas companies in the world, with operations in almost every corner of the globe. Its shares have outperformed the Zacks Oil & Gas Integrated industry in the past 6 months. Shares of Chevron have lost 12.8% compared with the 19.6% decline of the composite stocks belonging to the industry.

 

 

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(Reuters) – Oil major Chevron Corp’s

U.S. unit and waste management firm Brightmark LLC said on Wednesday they have formed a joint venture to market dairy biomethane, a renewable natural gas made of methane emissions from cattle burps.

Ruminant livestock such as cattle and sheep produce methane as a byproduct while digesting fibrous plant material. Methane accounts for 20% of global emissions and scientists have been working for years to reduce the amount of the gas released by cattle.

Chevron U.S.A. and Brightmark LLC said their investments in the new venture, Brightmark RNG Holdings LLC, will fund the construction of required infrastructure and commercial operation of dairy biomethane projects across multiple U.S. states.

Chevron will purchase the renewable natural gas produced from the JV’s projects and market it for use in vehicles that run on compressed natural gas, the companies said.

The latest move underscores a shift in investor demand, with increased pressure in recent years on fossil fuel companies, including Chevron, to reduce emissions, spend more on low-carbon energy and make disclosures on the impact of fossil fuel production on climate change.

“We are increasing renewables in support of our business, making targeted investments and establishing partnerships as we evaluate emerging sources of energy and the role they will play in our portfolio,” said Andy Walz, president of Americas products for Chevron.

Chevron is also part of another renewable natural gas JV, CalBioGas LLC, that last month announced its first successful production from dairy farms in Kern County.

(Reporting by Shradha Singh in Bengaluru; Editing by Shounak Dasgupta)

Copyright 2020 Thomson Reuters.

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