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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(Reuters) – New Zealand’s Fonterra <FCG.NZ> <FSF.NZ> said on Monday it has agreed to sell its farms in China for a total of NZ$555 million ($367.97 million) as the dairy producer continues to focus on the domestic market and reduce debt.

The company unveiled plans last year to halt overseas expansion after being criticised by the more than 10,000 farmers who make up its cooperative for its foray into countries like China and value added consumer products that were weighing on its profits.

“For the last 18 months, we have been reviewing every part of the business to ensure our assets and investments meet the needs of the Co-op today,” Chief Executive Officer Miles Hurrell said.

“Selling the farms is in line with our decision to focus on our New Zealand farmers’ milk.”

After the sale, the company will also be able to better prioritise its efforts in the foodservice, consumer and ingredients business in China, its biggest market, it added.

China Youran Dairy Group will purchase two farming-hubs located in Ying and Yutian for NZ$513 million, while Beijing Sanyuan Venture Capital is set to acquire an 85% stake in the Hangu farm.

The dairy giant said it will use the cash proceeds from the deal to pay down debt further, which it has already managed to reduce by NZ$1 billion, as of September.

(Reporting by Anushka Trivedi in Bengaluru; Editing by Daniel Wallis)

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FILE PHOTO: Fonterra milk tanker driving past dairy cows as it arrives at Fonterra's Te Rapa plant near Hamilton, New Zealand


© Reuters/Nigel Marple
FILE PHOTO: Fonterra milk tanker driving past dairy cows as it arrives at Fonterra’s Te Rapa plant near Hamilton, New Zealand


(Reuters) – New Zealand’s Fonterra said on Monday it has agreed to sell its farms in China for a total of NZ$555 million ($367.97 million) as the dairy producer continues to focus on the domestic market and reduce debt.

The company unveiled plans last year to halt overseas expansion after being criticised by the more than 10,000 farmers who make up its cooperative for its foray into countries like China and value added consumer products that were weighing on its profits.

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“For the last 18 months, we have been reviewing every part of the business to ensure our assets and investments meet the needs of the Co-op today,” Chief Executive Officer Miles Hurrell said.

“Selling the farms is in line with our decision to focus on our New Zealand farmers’ milk.”

After the sale, the company will also be able to better prioritise its efforts in the foodservice, consumer and ingredients business in China, its biggest market, it added.

China Youran Dairy Group will purchase two farming-hubs located in Ying and Yutian for NZ$513 million, while Beijing Sanyuan Venture Capital is set to acquire an 85% stake in the Hangu farm.

The dairy giant said it will use the cash proceeds from the deal to pay down debt further, which it has already managed to reduce by NZ$1 billion, as of September.

(Reporting by Anushka Trivedi in Bengaluru; Editing by Daniel Wallis)

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Milk producers in the State have urged the government to ensure universal insurance coverage for all milch animals. Currently, only 10% of the cattle have coverage, causing farmers to bear the losses if an animal without insurance dies.

“A cow can cost between ₹30,000 and ₹40,000, and if it dies it would be a loss of income and investment. Insurance would help in such a case,” said K.A. Sengottuvelu, president, Tamil Nadu Milk Producers Welfare Association.

A former Aavin official said that some ten years ago, former Chief Minister Jayalalithaa had given funds for insuring milch animals. “However, at present, only about 1.5 lakh cattle of the estimated 14 lakh have been provided coverage through the Tamil Nadu Lifestock Development Agency. Under this, the cost is being borne equally by the Centre, the State government and the milk union,” he said.

M.G. Rajendran of the association said it would take only about ₹50 crore per year to provide coverage for all the milch animals supplying milk to Aavin. “The amount can be divided between the federation, which is Aavin, the unions, the cooperative society and the farmers. Many unions are earning profits since they only buy and sell milk. They don’t convert milk into butter and skimmed milk powder and wait for the prices,” he said.

The milk farmers also want Aavin to provide medicines for the cattle, as is being done by some private dairies. “Earlier, Aavin, too, used to provide medicines for the cattle, but now some unions have kept essential medicines for the sake of showing stock,” said a milk producer.

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