Chevron Corporation (CVX Quick QuoteCVX - Free Report) and renewable energy firm Gevo, Inc. have signed a letter of intent to jointly invest in the construction and operation of one or more new facilities to turn inedible corn into sustainable aviation fuel (SAF), thereby lowering the lifecycle carbon intensity of aviation fuels.

Proteins and corn oil will also be produced at the new plants. Chevron will have the right to offtake about 150 million gallons per year to market to customers besides co-investing with Gevo in one or more projects.

Energy companies are under immense pressure to find new lines of business as investors and activists keep pushing for addressing climate-change issues. The entire energy sector is gearing up for a tremendous change in renewable energy resources for powering all industrial fields as temperatures are rising worldwide due to emission of greenhouse gases.

The majority of oil and gas supermajors including BP plc (BP Quick QuoteBP - Free Report) and Royal Dutch Shell , Equinor promised to become net-zero energy firms by 2050 and heavily invest in renewable and low-carbon energy alternatives.

As the focus on energy transition accelerates, San Ramon, CA-based Chevron snapped up eight deals in the last couple of weeks to invest in hydrogen, green jet fuel and renewable natural gas for building a better image to investors ahead of an investor presentation on environmental, social and governance (ESG) tomorrow.

Pertaining to one of those deals, this currently Zacks Rank #2 (Buy) Chevron announced last week that it will develop a pilot batch of sustainable aviation fuel (SAF) and sell it to Delta Air Lines (DAL Quick QuoteDAL - Free Report) at the Los Angeles International Airport. The development of SAF is another strategic path that is being pursued by the company to achieve carbon neutrality as biojet fuels help reduce emissions from air transportation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.