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Chevron recently acquired Ames, Iowa-based Renewable Energy Group, a decision that was made at the end of February and closed earlier this month.

According to Kevin Lucke, president of Chevron Renewable Energy Group, the deal was part of Chevron’s energy transition strategy.

“We wanted to be able to produce 100,000 barrels/day,” Lucke said. “That’s 4.2 million gallons/day of renewable fuels.”

That number was the targeted goal and was designed to lower the amount of carbon in their fuel products.

“As we started to progress our journey we looked around at the alternative companies that were out there that could help us, and we started discussions with Renewable Energy Group,” he said. “The reason to be quite honest was they have been in [renewable fuels] business for over 20 years.”

Lucke also described REG as a market leader and described the company’s facilities as “incredible,” called their workforce “talented and passionate” and said the company was leading in the field.

So when they were looking around for ways to meet that 100,000 barrel/day target, he said that REG has risen to the top. He said with the deal REG will already bring one-third of that goal into Chevron’s portfolio. REG would also bring expertise in feedstocks and plant operations.

“Chevron is a firm believer that the future of energy is lower carbon,” he said. “So how can we speed up that transition to lower carbon?

“It’s through the fuels and products that renewable energy group, renewable diesel, biodiesel in particular, that can be used today in engines currently that are operating today, whether it’s in your car or your tractor or your large truck.”

According to Lucke, this would immediately start a transition to lower carbon. For the local area, he said the company would turn toward the refinery (located at 15200 780th Ave.) for biodiesel and said it would be critical in the energy transition Chevron is trying to make.

There are currently 39 employees at the location south of Albert Lea, not including contractors, maintenance or truck drivers, and he expected that number to increase with the new acquisition.

“With Chevron’s growth ambitions, the biorefinery that Albert Lea and all the other locations, are going to be expected to be producing more biofuels and renewable fuels,” he said.

Lucke said because the world was struggling to supply energy needs, he said any source — petroleum or renewable — was good, and that the war in Ukraine exacerbated the need for energy.

He also said the move lent credibility to the company’s move to renewable energy. 

According to Lucke, the company’s refineries used local feedstock to produce renewable energy.

“It’s pretty cool that you can use the local area to be able to create biodiesel,” he said.