October 8, 2020

Chevron, Brightmark form joint venture for dairy biomethane production

Chevron Corp's CVX.N U.S. unit and waste management firm Brightmark LLC said on Wednesday they have formed a joint venture to produce and market dairy biomethane, derived from methane emissions from dairy cattle, Reuters reported.

The companies said their joint venture company, Brightmark RNG Holdings LLC, will fund infrastructure construction and commercial operation of dairy biomethane projects across multiple states across the United States.

Chevron will purchase the renewable natural gas from the JV's projects and market it for use in vehicles that run on compressed natural gas.

The latest move highlights a shift in investor demand on fossil fuel companies to cut emissions, make disclosures on the impact of their production on climate change, and spend more on low-carbon energy.

"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 part of another renewable natural gas JV, CalBioGas LLC, that announced in September its first successful production from Californian dairy farms: https://www.efeedlink.com/contents/09-28-2020/7056186a-645e-4942-90fe-fe886832f5e0-a181.html