Renewable fuels received a big boost from the country's second largest oil company. After an investment in ethanol fuel, Chevron acquired 22% of a Texas soybean biodiesel plant, meaning that biodiesel production in the U.S. will increase over 50%.
Chevron acquired 22% of Galveston Bay Biodiesel's facility in Galveston, Texas. It produce up to 100 million gallons a year of biodiesel, a fuel that is made from components of soybean oil. The plant will boost U.S. biodiesel output by 54%.
"The Galveston plant will treat soybean oil with chemicals to extract esters, which will be processed into diesel that is indistinguishable from petroleum-based diesel.
"This is a niche sector for us," Chevron spokesman Leif Sollid said.
"The investment follows Chevron's January announcement of plans to begin selling fuel made mostly from corn-based ethanol this summer in California. With crude oil approaching $75 a barrel, President Bush is encouraging production of biodiesel and ethanol as alternatives to petroleum-based fuels."
"The federal government indirectly subsidizes the biodiesel industry by giving refiners a $1-a-gallon tax credit for diesel made from fresh vegetable oil and a 50-cent-a-gallon credit for each gallon made from recycled grease."
Thanks to Ralph Borrmann
FULL STORY: Chevron Invests in Biodiesel Deal
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