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Chevron-CalBio Announce Completion of RNG Facility in California

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Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (CVX - Free Report) , and California Bioenergy LLC (CalBio) recently announced the completion of their central processing facility in Merced County, CA for the dairy biomethane project. The project will mark a significant milestone for the joint investment called CalBioGas Hilmar LLC by converting dairy manure into renewable natural gas (RNG).

How Will CVX and CalBio Process the RNG Production?

RNG production begins by capturing methane from dairy farms using CalBio’s technology and expertise. The captured methane is sent to a central processing facility to be converted into RNG. The RNG produced is then injected into the Pacific Gas and Electric Company (PG&E) pipeline to be marketed as an alternative transportation fuel.

Benefits of Carbon-Negative RNG Production

A prominent benefit of RNG production is that it is carbon-negative based on its lifecycle under California's Low Carbon Fuel Standard. RNG production benefits the environment by reducing greenhouse gas emissions by lowering 95,000 metric tons of CO2 annually.

The collaboration between CVX and CalBio benefits both companies by supporting CalBio to achieve its target of creating lower carbon intensity solutions, helping the state in achieving its methane reduction goals. The collaboration also allows CVX to provide it with a parallel to its traditional business.

Supported by Visionary Partnerships

The project has been made possible with the vital support of entities like PG&E, which facilitated the transport and delivery of RNG, and the California Department of Food and Agriculture, which provided the additional capital required for the project.

CVX’s Zacks Rank and Key Picks

The U.S. energy major Chevron is one of the world’s largest publicly traded oil and gas companies, with operations that span almost every corner of the globe. However, the company is grappling with high sensitivity to oil price fluctuations and relatively expensive valuation. Currently, CVX has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Mach Natural Resources LP (MNR - Free Report) , TechnipFMC plc (FTI - Free Report) and Targa Resources Corp. (TRGP - Free Report) .Currently, Mach Natural Resources, TechnipFMC and Targa Resources each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mach Natural Resources LP is an independent upstream oil and gas company that focuses on the acquisition, development and production of oil, natural gas and natural gas liquids reserves. The Zacks Consensus Estimate for MNR’s 2024 earnings indicates 200% year-over-year growth.

London-based TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The Zacks Consensus Estimate for FTI’s 2024 earnings indicates 246.67% year-over-year growth.

Houston, TX-based Targa Resources Corp. is a premier energy infrastructure company and a leading provider of integrated midstream services in North America. The Zacks Consensus Estimate for TRGP’s 2024 earnings indicates 70.22% year-over-year growth.


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