Chevron completes acquisition of Renewable Energy Group
Chevron Corp. completed its acquisition of Renewable Energy Group Inc., North America’s largest biodiesel producer, June 13.
“We have brought together companies with complementary capabilities, assets and customer relationships to make Chevron one of the leading renewable fuels companies in the United States,” said Mark Nelson, executive vice president of downstream and chemicals for Chevron. “Chevron now offers our customers an expanded suite of cost-effective, lower-carbon solutions that utilize today’s fleets and infrastructure.”
Former REG president and CEO CJ Warner now sits on Chevron’s board of directors, effective immediately.
“CJ Warner has deep experience across both the traditional and renewable energy sectors,” said Mike Wirth, Chevron chairman and CEO. “Her perspective and guidance will be invaluable as Chevron leverages its strengths to deliver lower-carbon energy to a growing world.”
Chevron and REG first announced Chevron’s intentions to acquire REG for $3.15 billion in cash Feb. 28.
REG stockholders approved the acquisition by Chevron in mid-May.
“This is a meaningful acquisition for our industry and for Clean Fuels for many reasons,” said Donnell Rehagen, CEO of Clean Fuels Alliance America, a trade group serving the North American biobased diesel sector. REG has been an association member since 2006.
“REG has been a leader in our industry from its inception, being one of the very first companies to build a biodiesel plant in the United States,” Rehagen added. “This leadership in renewable fuels, coupled with the history and strength in the energy sector Chevron brings, will continue to build on the momentum our industry is experiencing as the country continues on its path of carbon reduction through cleaner fuels.”
REG’s Chad Stone, senior vice president of commercial performance at REG, joined the Clean Fuels board in 2015 and will continue to lead the Clean Fuels governing board as chair.
“We have been working together for decades to build this industry and never before have we seen such interest or investment in our fuels,” Stone said. “I am excited to see what the future holds as we join forces to provide fuel solutions that meet the growing demand we’re seeing in the marketplace.”
REG operates 10 biodiesel refineries in the U.S. and Europe and one renewable diesel refinery in Louisiana undergoing a major expansion, a project that broke ground last October.
Last year, REG produced 480 million gallons of biodiesel and renewable diesel.