ExxonMobil expands renewable diesel agreement with Global Clean Energy Holdings
ExxonMobil and Global Clean Energy Holdings have expanded their five-year agreement to increase ExxonMobil’s purchase of renewable diesel up to 210 million gallons per year (mgy).
ExxonMobil will be the exclusive buyer of renewable diesel from GCEH’s biorefinery in Bakersfield, California, which is on schedule to begin production in early 2022. The renewable diesel leverages GCEH’s patented camelina crop, which can significantly reduce life-cycle greenhouse gas emissions.
“Our expanded agreement with Global Clean Energy reinforces ExxonMobil’s longstanding efforts to support society’s ambitions for lower-emission fuels,” said Ian Carr, president of ExxonMobil Fuels and Lubricants Co. “Through our growing relationship, we remain focused on bringing renewable fuels to market that make meaningful contributions to help consumers reduce their emissions.”
Based on analysis of California Air Resources Board data, renewable diesel from various nonpetroleum feedstocks can provide life-cycle greenhouse gas emissions reductions of approximately 40 percent to 80 percent compared to petroleum-based diesel. When cultivated as a cover crop on rotational dryland, camelina can help meet the growing global demand for lower-carbon nonpetroleum feedstocks.
“Our work at the Bakersfield biorefinery is a perfect example of what can be accomplished when an industry leader like ExxonMobil supports a growing renewables company like Global Clean Energy with long-term contracts,” said Richard Palmer CEO of GCEH. “By working together across traditional agricultural, energy and supply chain lines, we are showing how ag and energy, big and small, can collaborate to bring lower-carbon fuels to market.”
The Bakersfield biorefinery will process up to 230 mgy of renewable feedstocks, including GCEH’s proprietary camelina. The balance of renewable diesel will be produced using various nonpetroleum feedstocks, including used cooking oil, soybean oil, distillers corn oil and other renewable sources.
The original agreement signed in August 2020 committed ExxonMobil to purchase 105 mgy of renewable diesel. Following production startup, ExxonMobil plans to distribute the renewable diesel within California and potentially other U.S. and international markets.