Chevron Renewable Energy Group to be led by Kevin Lucke
Chevron Corporation announced yesterday that it has completed its acquisition of Renewable Energy Group, Inc., (REG) following approval by REG stockholders. The REG acquisition will fuel the expansion of Chevron’s renewable fuels business and aims to help provide lower carbon solutions for the transportation sector, the company said.
“Chevron Renewable Energy Group will help us grow our renewable fuels production capacity to 100,000 barrels per day by 2030,” the U.S. oil major said on its website.
Chevron announced a definitive agreement had been signed to acquire Renewable Energy Group in an all-cash transaction valued at USD3.15 billion, or USD61.50 per share, in March 2022.
With 11 biodiesel and renewable diesel plants in the U.S. and Germany, REG produced nearly half a billion gallons of renewable fuel in 2021.
The Chevron Renewable Energy Group will be headquartered in Ames, Iowa, U.S.A., where REG was headquartered. Kevin Lucke has been named president of Chevron Renewable Energy Group. The Iowa State University engineering graduate has been with Chevron’s downstream and chemicals business for 40 years.
“REG helped establish the U.S. biofuels industry, and together our companies are poised to accelerate the growth of the industry,” said Lucke. “As a native Iowan, I could not be prouder to work with this exceptional group of people who are dedicated to helping provide lower carbon solutions for the transportation sector from right here in the state,” he told the Des Moines Register.
Combining REG’s feedstock aggregation capabilities and Chevron’s fuel distribution network, Chevron Renewable Energy Group is positioned to be a leader in the alternative fuels space, the company said.
Cynthia (CJ) Warner, formerly president and CEO of REG, has been appointed to Chevron’s Board of Directors.
“CJ Warner has deep experience across both the traditional and renewable energy sectors,” said Chevron Chairman and CEO Mike Wirth. “Her perspective and guidance will be invaluable as Chevron leverages its strengths to deliver lower carbon energy to a growing world.”
“We have brought together companies with complementary capabilities, assets, and customer relationships to make Chevron one of the leading renewable fuels companies in the United States,” said Mark Nelson, Chevron’s executive vice president of Downstream & Chemicals. “Chevron now offers our customers an expanded suite of cost-effective, lower carbon solutions that utilize today’s fleets and infrastructure.”