Chevron signs agreement to provide funding for as many as 18 methane digesters.

June 28, 2019

2 Min Read
CalBio, dairy farmers partner with Chevron on projects
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Chevron U.S.A. Inc. and California Bioenergy LLC (CalBio) recently announced a joint investment in a holding company with California dairy farmers to produce and market dairy biomethane for vehicle fuel in the state. The holding company, CalBioGas LLC, 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 fuel market.

Chevron said working with CalBio and California dairy farmers to produce and market dairy biomethane demonstrates the company’s commitment to find creative, cost-effective solutions to achieve compliance with California’s Low Carbon Fuel Standard (LCFS).

CalBio currently brings technology, operational experience and capital to help dairy farmers build digesters and methane capture projects to convert methane into 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 of California. Once completed, these projects will significantly mitigate the dairies’ methane emissions and help make them among the most environmentally efficient and sustainable in the world.

The clusters of digesters have been awarded California Department of Food and Agriculture grants, which must be augmented with additional capital to complete the projects.

“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,” said Mike Vomund, vice president for Chevron Americas Products -- West. “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.”

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 the local gas utility’s pipeline. The RNG will then be 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,” CalBio chief executive officer N. Ross Buckenham said. “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.”

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