ExxonMobil, Global Clean Energy Holdings reach agreement for 2.5 million barrels of renewable diesel annually
Under a new agreement reached between ExxonMobil and Global Clean Energy Holdings, Exxon will be supplied with 2.5 million barrels of renewable diesel per year, for five years, beginning in 2022.
The diesel will come from a converted California refinery in Bakersfield, California, which will utilize Global Clean Energy’s varieties of the camelina crop and other non-petroleum feedstocks. ExxonMobil will utilize the resulting production within California, but could also expand its distribution to other domestic and international markets.
“Our agreement with Global Clean Energy builds on ExxonMobil’s longstanding efforts to develop and offer products that help meet society’s energy needs while reducing environmental impacts,” Bryan Milton, president of ExxonMobil Fuels and Lubricants Company, said. “Chemically similar to petroleum-based diesel, renewable diesel can be readily blended for use in engines on the market today.”
An added benefit is that renewable diesel can greatly reduce life-cycle greenhouse gas emissions. According to California Air Resources Board data, renewable diesel can cut those emissions by between 40-80 percent when compared against petroleum-based diesel.
“Our relationship with ExxonMobil is a perfect fit for Global Clean Energy and the Bakersfield biorefinery because it leverages ExxonMobil’s scale and unrivaled market perspective to unlock value for both companies,” Richard Palmer, CEO of Global Clean Energy Holdings, said. “By combining upstream feedstock supply and downstream production, we are moving toward the fully integrated production model pioneered by ExxonMobil.”
