Chevron Renewable Energy Group Announces Strategic Investment in Expanded Low Carbon Feedstock Processing in Europe
AMES, Iowa, February 17, 2022 – Chevron Renewable Energy Group will install a state-of-the-art pretreatment facility in Germany, enabling the company to refine some of the lowest carbon intensity, hardest to convert waste fats and oils for bio-based diesel production. The project is located on the North Sea harbor of Emden, Germany at the border to The Netherlands.
This project will enhance Chevron Renewable Energy Group Emden and Oeding’s ability to produce renewable fuel from a wider variety of feedstocks, including ‘Generation 3’ advanced feedstocks as defined under the Chevron Renewable Energy Directive (RED) II. This strategic upgrade will enable the company to continue to expand the company’s strong global sourcing and trading position, produce more deeply decarbonized fuel and better serve European customers seeking to accelerate their transition to cleaner energy.
“This strategic investment expands our already wide selection of feedstock options that we run at Emden and Oeding today, and qualifies us to better serve the growing demand for low carbon fuel options in Europe,” said President & CEO, CJ Warner. “Upgrading our German production sites with our proprietary technology will position us well for the future, build on our supply assurance and empower us to further reduce the carbon intensity of the renewable fuels we produce.”
The RED II policy incentivizes waste and advanced feedstocks as Europe continues to emphasize decarbonization efforts. Chevron Renewable Energy Group currently produces approximately 50 million gallons, or 167kMT per year of biodiesel at its two German biorefineries, delivering carbon reduction impact in Europe, notably with on-road transportation and maritime customers.
“Chevron Renewable Energy Group will continue to build on our track record of delivering high quality fuels and being a trusted partner to waste producers seeking reliable offtake,” said VP and Managing Director, International Business, Raymond Richie. “As customers and suppliers demand more sustainable business practices, we are well positioned to play a key role in the circular supply chain.”
Chevron Renewable Energy Group acquired the bio-based diesel plants in Germany in 2017 and has since opened a global trading office in Amsterdam for sourcing feedstocks and selling co-products and fuels. Chevron Renewable Energy Group has all required permits for construction and the project is expected to be completed in the second half of 2023 with start-up by year-end. Chevron Renewable Energy Group has selected BDI- BioEnergy International GmbH as the engineering, procurement and construction partner.
“With our innovative RetroFit programme, we are taking the two biodiesel plants to a completely new technical and economic level. The result is unique raw material flexibility, maximum plant availability and a measurably valuable contribution to the circular economy and CO2 reduction,” said Markus Dielacher, CEO BDI-BioEnergy International GmbH.
About Chevron Renewable Energy Group
Chevron Renewable Energy Group is leading the energy and transportation industries’ transition to sustainability by converting renewable resources into high-quality, lower carbon fuels. Chevron Renewable Energy Group is an international producer of sustainable fuels that significantly lower greenhouse gas emissions to immediately reduce carbon impact. Chevron Renewable Energy Group utilizes a global integrated procurement, distribution and logistics network to operate 11 biorefineries in the U.S. and Europe. In 2020, Chevron Renewable Energy Group produced 519 million gallons, or 1.7 million metric tons of cleaner fuel delivering 4.2 million metric tons of carbon reduction. Chevron Renewable Energy Group is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.
Forward Looking Statement
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the company’s plans to install a state-of-the-art pretreatment facility in Germany, allowing the use of a wide variety of low carbon intensity, hard to convert bio-based diesel feedstocks, including so called Generation 3 feedstocks, expanding the company’s global sourcing and trading position, producing more deeply decarbonized fuel, better serving customers seeking to accelerate their transition to cleaner energy, delivering high quality fuels, being a trusted partner to waste producers, playing a key role in the circular supply chain, and completing the project in second half of 2023 with start-up by the end of 2023. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, customer preferences for low carbon fuels and desire to source product from Chevron Renewable Energy Group; the availability, future price, and volatility of feedstocks; changes in governmental programs and policies, including RED II and the definition of Generation 3 feedstocks; the potential impact of COVID-19 on our business and operations, including the project; risks associated with fire, explosions, leaks and other natural disasters at our German facilities and our suppliers facilities; our and our suppliers and construction partners’ ability to complete the project on time and on budget; and other risks and uncertainties described in Chevron Renewable Energy Group’s annual report on Form 10-K for the year ended December 31, 2020 and subsequently filed Form 10-Q and other periodic filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations.