On the high-speed highway of innovation, it’s easy to miss the mile markers. Stopping for a scenic overlook is often overlooked but critical to appreciate our journey to a lower-carbon future. Few know that better than the members of the Chevron Renewable Energy Group as they celebrate their first anniversary.
Chevron REG is one of the largest biobased diesel producers by volume in the United States. The June 2022 acquisition has emerged as a case study in leveraging comparable strengths to drive a lower-carbon future.
“We continue to learn from one another and are better together because of it,” said Mark Nelson, vice chairman and executive vice president of strategy, policy and development, of the acquisition. “We’re a nimbler and more responsive group, taking advantage of opportunities as they arise.”
Why It Matters
Those opportunities include biodiesel and renewable diesel fuels—both important ingredients for providing lower-carbon solutions for hard-to-abate sectors such as rail, marine and heavy-duty transportation.
By helping to meet the growing global demand for lower carbon-intensity fuels, Chevron is striving to lead the way to a lower-carbon future.
A Full-circle Moment
As the ink on the acquisition deal was drying, Kevin Lucke, a veteran employee with more than 40 years at Chevron under his belt, received an offer he couldn’t refuse.
“It was just too cool of an opportunity to let pass by,” said Lucke, president of Chevron REG, from his office in Ames, Iowa, where the team is based. “I was thrilled to take on the challenge and to be able to come back to Iowa for the role.”
A native Iowan, he was recruited by Chevron while attending Iowa State University. Decades later, when asked to lead Chevron REG, he realized that his life had come full circle.
“My heritage and roots are in agriculture,” said Lucke, who is actively engaged in his own 1,300-acre farm of corn and soybeans. “I grew up on a farm. Agriculture and renewable energy are very closely related, so that’s part of the appeal.”
As the president of Chevron REG, Lucke said the acquisition was about “aligning the two organizations and making sure that we both understand the value that we bring.”
Driving Impact
The new expansion project in Geismar, Louisiana, is a feather in the cap for Chevron REG’s first year.
The company targets 4.2 million gallons a day of renewable fuels production capacity by 2030. According to Lucke, some headway was made before the acquisition. This new facility will catapult that progress.
“It will create an order-of-magnitude increase in production that will help us meet the company’s and our customers’ ongoing needs for lower-carbon fuels,” Lucke said of the expanded biorefinery coming online in 2024.
Purpose-driven People
According to Lucke, “purpose driven” is an understatement.
“People are actually our greatest asset,” Nelson said. “The teams are incredible. They bring heart and passion to the business and Chevron is a better company because of it.”
Lucke added, “We’ve got super talented people tackling some very large challenges. Beyond that, it’s how we’re making a difference for the energy transition.”