CalBioGas Hilmar LLC, a joint investment between Chevron Corporation subsidiary Chevron U.S.A. Inc. and California Bioenergy LLC (CalBio), has completed the central processing facility for its 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). This gas is then injected into a 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,” says 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 life cycle basis under California’s Low Carbon Fuel Standard (LCFS). Upon completion of the project, the estimated annual emissions reduction will be approximately 95,000 metric tons 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,” adds Ross Buckenham, CEO of CalBio. “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. 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.
