Chevron U.S.A., a subsidiary of Chevron Corporation, has signed definitive agreements to form a joint venture (JV) with Mercuria Energy Trading (Mercuria).
Mercuria is one of the world’s largest integrated energy and commodities companies and has partnered with Chevron to own and operate American Natural Gas (ANG) and its network of 60 CNG stations across the US.
Chevron is building a large-scale, vertically integrated RNG business in the US. Through its existing partnerships with Brightmark and California Bioenergy, Chevron is developing projects to produce RNG from dairy digesters across the country.
The creation of this JV with Mercuria will allow Chevron to rapidly grow its RNG value chain, complementing its previously announced plan to open more than 30 Chevron-branded CNG stations by 2025.
“Chevron is committed to producing a ten-fold increase in RNG volumes by 2025 compared to 2020 as part of our higher returns, lower carbon strategy,” said Andy Walz, Chevron’s president of Americas Fuels & Lubricants.
“This acquisition will advance our RNG business in support of customers who want to reduce their carbon footprint.”
Mercuria’s chief investment officer Brian Falik commented: “Mercuria is pleased to partner with Chevron and ANG founder Andrew West in growing ANG’s fuelling network and continuing to provide a best-in-class decarbonisation solution to the medium- and heavy-duty vehicle market.
“Chevron’s excellent reputation of customer service and its like-minded commitment to investment in the energy transition makes them the perfect partner to expand the ANG footprint.”