Chevron, CalBio, California dairy farmers partner for renewable compressed natural gas

In California, Chevron, California BioEnergy (CalBio) and California dairy farmers will deploy digesters on dairy farms to create renewable compressed natural gas (R-CNG), a clean vehicle fuel. Under the partnership, Chevron funding will bolster R-CNG infrastructure investments while helping bring the fuel to market in California.

The project aims to unlock new income streams for farmers by marketing R-CNG for use as a vehicle fuel in California – a key element of the Chevron announcement. It also aims to help farmers meet California state regulations calling for a 40% reduction in manure-related methane emissions from 2013 levels by 2030. In fact, the project has seen support directly from the State of California. In December 2018, a state grant totaling more than $90 million was awarded to CalBio to help expand interconnection pipeline needed for the project.

The news builds on a year of collaboration between Land O’Lakes and CalBio under a new effort announced in June 2018 to help farmers overcome barriers to adoption of digesters. CalBio has worked with Land O’Lakes members in California to provide expertise to help install and manage the technology, and Land O’Lakes has supported its members with strategies for deployment – including opportunities to finance projects using cooperative equity through the SUSTAIN Innovation Financing program.