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.
About Chevron & Price Performance
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.
Zacks Rank & Key Picks
The company currently carries a Zack Rank #3 (Hold). Some better-ranked players in the energy space