Exxon and Chevron, the U.S. oil companies, are investigating how to process bio-based feedstocks such as vegetable oils and biofuels partially processed with petroleum distillates to produce renewable diesel, sustainable jet fuel, and renewable gasoline.
Exxon, for its part, aims to manufacture more than 40,000 barrels per day of low-emission fuels at a competitive cost by 2025. To do so, it will reuse its refinery plants. “We see the potential to leverage the footprint of our existing facilities, proprietary catalyst technology and decades of experience in processing challenging feed streams to develop attractive low-emission fuel projects with competitive yields,” said company spokesman Casey Norton.
On the other hand, Chevron is looking at how to run those feedstocks through its fluid catalytic cracking (FCC) units, which are generally the largest component of refining facilities, and are responsible for gasoline production. “Our goal is to co-process bio-based feedstocks by the end of 2021,” a Chevron spokesman told Reuters.
According to sources consulted by the British media, if approved by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), Chevron could produce, through government subsidies, large quantities of renewable fuel. Although such a product is not yet commercially available, it is expected to reduce carbon dioxide emissions by 61% to 83%, depending on the feedstock used.
Read more on the subject and fidn other important business news with the Born2Invest mobile app.
Companies seek a niche in the renewables market
Exxon and Chevron are in the public spotlight for their laxity in embracing new fuel production trends. Unlike their European competitors Royal Dutch Shell and TotalEnergies, these companies have been criticized for their less urgent approach to renewable investments. In fact, the percentage of capital allocated to the implementation of ‘green’ technologies has been drastically lower.
Renewable fuels account for only 5% of U.S. consumption. However, the anti-carbon plans of US President Joe Biden and the European and Asian bloc will drastically reduce the use of polluting energies, so it is to be expected that this percentage will increase significantly.
For this reason, these companies are looking to increase their presence in the burgeoning renewable fuels market by finding ways to manufacture these products in their existing facilities. Both want to produce sustainable fuels without spending the billions of dollars that other refiners have invested to reconfigure their plants.
It is worth noting that both companies are among the corporations that have the greatest impact on climate change in the world. Exxon ranks fifth with 2.0% of total greenhouse gas emissions, while Chevron ranks twelfth with 1.3%, according to a study by the Carbon Disclosure Project of the United Kingdom, together with the Climate Accountability Institute of the United States.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in elEconomista.es a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Cepsa Plans to Build a Hydroproduct to Import Hydrogen from Morocco
According to Cepsa's chief executive, the industry needs a hydrogen price of between $2 and $2.5 and around $3 or...
Same Old, Same Old Crummy Market
But these are little issues compared to the performance difference between the stock market and commodities seen since November 2021. Has...
Stock Markets Have Definitely Seen Better Days
It has been the worst start since 1939. Yes, we have to go back that far to find a year...
What is the Best Social Media for Your Business?
It’s time to dispel the myth of the “best social media for business”. Learn more about the demographic data behind...
Amateur Sports Leagues Win Big as FOXD Network Partners With CXSports
Aimed squarely at amateur and semi-professional sports leagues and teams, sports broadcaster FOXD Network has just partnered up with CXSports....
Cannabis2 weeks ago
The Global CBD Gummies Market Will Reach $12 Billion by 2028
Featured2 weeks ago
Understanding the Fed’s Rate Hike: the Long Term Goal of 2.0% Inflation
Featured2 weeks ago
Why Rice Supplies Are Tight and Demand Is Holding Together
Cannabis2 weeks ago
Why the Cannabis Market Has Growing Investment Prospects