Chevron and CalBio complete RNG facility for biomethane fuel project

CalBioGas Hilmar LLC, a joint investment between Chevron USA Inc., a subsidiary of Chevron Corp. and California Bioenergy LLC (CalBio), Visalia, California, have completed the central processing facility for a dairy biomethane project in Merced County, California.

CalBio technology helps local dairy farmers capture methane from dairy manure in anaerobic digesters on their farms. As part of the joint investment, after the methane is captured, it is sent to the central processing facility where it is upgraded into renewable natural gas (RNG). The renewable natural gas is then injected into the Pacific Gas and Electric Company (PG&E) pipeline where it is marketed as an alternative fuel for transportation.

“We are proud of the progress we have made on these projects alongside our partner CalBio as we continue to provide lower carbon intensity fuels to the California market,” says Nuray Elci, vice president of renewables for Chevron. “This partnership allows us to complement the strength of our traditional business to provide a broader suite of solutions to our customers.” 

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The RNG produced through this partnership is considered carbon negative on a lifecycle basis under California’s Low Carbon Fuel Standard (LCFS). Upon completion of the project, the estimated annual emissions reduction will be approximately 95,000 MT of CO2e per year according to the CA-GREET 3.0 Model. This methane is captured from a total of seven digesters that are part of the project. 

"Partnering with Chevron amplifies our commitment to creating lower carbon intensity solutions for dairy farms by turning waste into renewable energy," CalBio CEO Ross Buckenham says. "By working together to reduce methane emissions from dairies, we’re not only helping the state achieve its methane reduction goals, but also making a positive impact on our communities. This collaboration marks a step forward in the journey toward a lower carbon energy and dairy future. We are excited to support this effort to reduce methane emissions."

The project was paid for in part by a grant from the California Department of Food and Agriculture, which was augmented with additional capital.

“PG&E is committed to achieving a clean, decarbonized net zero energy system by 2040," says Kevin Armato, PG&E vice president, transmission and distribution construction. "We are proud to support the CalBioGas Hilmar LLC RNG facility and the interconnection, transport and delivery of this renewable resource to realize this goal. We look forward to our continued collaboration with CalBio in the coming years to reduce greenhouse gas emissions by delivering clean, renewable energy here in Northern California.”