Chevron and CalBio complete renewable natural gas central processing facility for Hilmar, CA biomethane fuel project

Completion of facility allows for renewable natural gas injection into PG&E pipeline

Completion of the project was celebrated on November 19 with a ribbon cutting celebration  at the central processing facility site. 

HILMAR, Calif. (November 25, 2024) – CalBioGas Hilmar LLC, a joint investment between Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX) and California Bioenergy LLC (CalBio), announced today that they have completed the central processing facility for their dairy biomethane project in Merced County, California. 

CalBio brings technology and expertise to help local dairy farmers capture methane from dairy manure in anaerobic digesters on their farms. As part of the joint investment, after the methane is captured, it is sent to the central processing facility where it is upgraded into renewable natural gas (RNG). The renewable natural gas is then injected into the Pacific Gas and Electric Company (PG&E) pipeline where it is marketed as an alternative fuel for transportation. 

“We are proud of the progress we have made on these projects alongside our partner CalBio as we continue to provide lower carbon intensity fuels to the California market,” said Nuray Elci, Vice President of Renewables for Chevron. “This partnership allows us to complement the strength of our traditional business to provide a broader suite of solutions to our customers.”  

The RNG produced through this partnership is considered carbon negative on a lifecycle basis under California’s Low Carbon Fuel Standard (LCFS). Upon completion of the project, the estimated annual emissions reduction will be approximately 95,000 MT of CO₂e per year according to the CA-GREET 3.0 Model. This methane is captured from a total of seven digesters that are part of the project.  

"Partnering with Chevron amplifies our commitment to creating lower carbon intensity solutions for dairy farms by turning waste into renewable energy. By working together to reduce methane emissions from dairies, we’re not only helping the state achieve its methane reduction goals, but also making a positive impact on our communities,” said Ross Buckenham, CEO of CalBio. “This collaboration marks a step forward in the journey toward a lower carbon energy and dairy future. We are excited to support this effort to reduce methane emissions."

This project was made possible through the support of several partners including 4Creeks Design, PG&E and local dairy farmers. Support was provided for the project through a California Department of Food and Agriculture grant, which was augmented with additional capital to complete the project. 

“PG&E is committed to achieving a clean, decarbonized net zero energy system by 2040. We are proud to support the CalBioGas Hilmar LLC RNG facility and the interconnection, transport and delivery of this renewable resource to realize this goal,” said Kevin Armato, PG&E Vice President, Transmission and Distribution Construction. “We look forward to our continued collaboration with CalBio in the coming years to reduce greenhouse gas emissions by delivering clean, renewable energy here in Northern California.” 

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