Posted By RichC on June 1, 2006
With players like Chevron entering into the biodiesel production business with a 22% ownership in Galveston Bay Biodiesel (GBB), the US could see far more ‘grown’ fuels entering the figurative oil pipeline. Currently the Houston based GBB company is building a facility in Galveston that should be completed by the end of the year. This plant will have the potential to produce 100 million gallons of biodiesel per year — note: the US produces approximately 75 million gallons of biodiesel ‘total’ in all of 2005.
Yesterday at a press event, Chevron officially announced this new business unit in a ceremony that included Senator Kay Bailey Hutchinson, Lyda Ann Thomas (mayor of Galveston), Donald Paul (VP/CTO of Chevron) and William Berger (chairman of GBB). “Biofuels are a growing component of the world’s energy base and will be an active part of Chevron’s efforts to help diversify the world’s energy supplies. Chevron’s capabilities and experience in producing and distributing high-quality fuels make us ideally positioned to pursue opportunities in this sector as it expands,” said Donald Paul. According to the company’s press release, “the biofuels business unit will operate within Chevron Technology Ventures (CTV), a corporate subsidiary dedicated to identifying, developing and commercializing emerging energy technologies. Chevron will leverage its broad portfolio of existing technological capabilities and assets to the company’s efforts in this area.”
Chevron isn’t new to biofuels as it currently blends about 300 million gallons of ethanol per year for use in gasoline blends. With companies of this magnitude building biofuel infrastructure, renewable fuels look to become more mainstream every year. I suspect someday soon we’ll drop the name ‘bio’ all together and fuels will all come with a percentage of ethanol or biodiesel?