U.S. energy major Chevron has completed the acquisition of Iowa-based biodiesel production company Renewable Energy Group (REG) following approval by REG stockholders.
At the beginning of March this year, Chevron said it will buy the outstanding shares of the renewable fuels firm for $3.15 billion in cash. On 13 July, the acquisition has been finalised, after receiving approval from REG stakeholders.
This transaction’s main goal is to push progress toward Chevron’s target to grow renewable fuels production capacity to 100,000 barrels per day by 2030. It also brings additional feedstock supplies and pre-treatment facilities.
“We have brought together companies with complementary capabilities, assets, and customer relationships to make Chevron one of the leading renewable fuels companies in the U.S.,” said Mark Nelson, executive vice president of downstream & chemicals for the company. “Chevron now offers our customers an expanded suite of cost-effective, lower carbon solutions that utilise today’s fleets and infrastructure.”
Furthermore, Cynthia Warner, formerly president and CEO of REG, has been appointed to Chevron’s board of directors.
“CJ Warner has deep experience across both the traditional and renewable energy sectors,” said Chevron CEO Mike Wirth.
Chevron’s renewable fuels business, REG, will be headquartered in Ames, Iowa.
Source: Offshore Energy