Chevron U.S.A. Inc. is getting into the renewable natural gas business with dairy farmers. Together with Brightmark LLC in a joint venture, the two will own projects to produce and market dairy biomethane, a renewable natural gas.
Equity investments by each company in the new venture will fund construction of infrastructure and commercial operation of dairy biomethane projects in multiple states. The states were not identified.
Chevron will purchase RNG produced from these projects and market the volumes for use in vehicles operating on compressed natural gas. Marathon Capital acted as exclusive financial advisor to Brightmark in establishing the partnership with Chevron.
“Chevron is committed to improving how affordable, reliable, ever-cleaner energy is developed and delivered, investing in companies addressing GHG emissions and progressing lower-carbon technologies,” said Andy Walz, president of Americas Products for Chevron. “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.”
“Our mission at Brightmark is to reimagine waste by creating innovative solutions like RNG projects,” said Bob Powell, CEO and founder of Brightmark. “This joint venture is a powerful partnership that will accelerate Brightmark’s ambition to achieve a global net-zero carbon future. It is imperative that Brightmark develop these lifecycle carbon negative projects all over the world, and this is a huge step forward in that process. Our RNG projects also deliver a true ‘win-win’ in terms of driving sustainable agriculture with significantly less waste and improving economic development in rural communities.”