Assisting Liquid Fuel Retailers as They Transition to a Lower Carbon Future

Chevron Renewable Energy Group was a Diamond Sponsor at the Eastern Energy Expo, and Jason Lawrence, Senior Business Development Executive, was a panelist in the “Featured Session: The Industry’s Response to Carbon Reduction” on Wednesday, May 24. Jason spoke about fuel supply, lower carbon fuels and Chevron Renewable Energy Group’s mission to assist liquid fuel retailers as they transition to a lower carbon future. Here are a few of the questions posed and Jason’s responses.

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Jason Lawrence
Senior Business Development Executive

 

The transition to zero-carbon home heating relies upon an adequate and reliable supply of renewable fuels (biodiesel/renewable diesel). Does the producer industry see the supply meeting the increasing demand?  

 “Yes, we do. Chevron Renewable Energy Group has always been supportive of this market and is looking at long-range planning on how best to approach the Northeast. I have stated this before, but the best way to tackle the supply issues is to have a discussion with your producer partners. An open dialogue with us creates a transparent agreement on how best to serve the heating oil dealer and how to best allocate production capacity to the heating oil dealer. Renewable fuel supply chains act very differently versus legacy petroleum. I liken it more to a propane supply chain. Not necessarily summer/winter, however, layering in early and often has been beneficial for customers.” 

Can this supply be concentrated in the Northeastern region and be compressed primarily into 4 months? 

“I believe that it can. It will take an all of the above strategy, meaning we will be looking for rail, marine and trucking to get the job done. It will really be about commitment. Who wants to be in this market? When we have our discussions, Chevron Renewable Energy Group is ready to deliver the fuel to our partners who are committed to using it.” 

Can the liquid heating fuels industry rely upon a continued commitment from renewable fuel producers? 

“Absolutely. No question. The producer community is looking for strategic partners and we are also willing to make investments with the right groups to help assist them with the energy transition. Our partnerships with Broco Energy and Troiano Fuel are perfect examples of this.” 

Is there any R&D under way to enhance cold handling and storage of these fuels? 

 “Chevron Renewable Energy Group is currently working with NORA on B100 and blend testing.” 

What forces, market or governmental/regulatory, might make it easier to procure the needed supply? 

“Clearly the presence of an LCFS credit schema makes markets more desirable for us … but we are also looking to expand the wider use of the fuel and help organizations meet their lower carbon objectives. A Northeast Regional LCFS/Clean Heat Standard that adopts renewable fuels is a necessary component for the survival of our industry. We are trying to help with this effort on a macro level.” 

What do renewable fuel producers need from the liquid heating fuel industry? 

“Commitment. You commit to us, and we commit to you. It is that simple.” 

 

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