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Chevron (CVX) Expands Alliance With Brightmark for Renewable Fuel

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Chevron Corporation (CVX - Free Report) announced the expansion of its partnership with Brightmark LLC to manufacture and market dairy biomethane, which is a type of renewable natural gas (“RNG”) containing methane emissions.

Chevron is progressing with its plan to convert cow manure into RNG in an attempt to reduce its carbon footprint. Similar to other oil majors, the company has been under pressure to act on climate change due to mounting pressure from investors and environmental activists. The enhanced partnership with waste solutions manager Brightmark will help Chevron address this growing pressure.

Brightmark is a global waste solutions company, which transforms organic waste into RNG to help protect the environment. By deploying waste-to-energy solutions, it enables programs, specifically designed for meeting environmental needs, to build scalable project solutions. Brightmark currently owns RNG projects in New York, Michigan, Florida, South Dakota and Arizona.

As part of the partnership, both companies will make additional equity investments to fund the construction of infrastructure and commercial operations of 10 dairy biomethane projects. This includes new sites in Iowa and Wisconsin as well as additional sites in Michigan and South Dakota.

Chevron will buy RNG produced from these projects and market it as a transportation fuel for vehicles that operate on compressed natural gas. The companies are already developing 28 plants in seven states, with the first expected to commence production this year.

The latest expansion advances Chevron’s strategy of higher returns and lower carbon. The company has been working on advancing the use of renewables, making targeted investments and establishing partnerships in emerging sources of energy.

Company Profile

Headquartered in San Ramon, CA, Chevron is one of the largest publicly traded oil and gas companies. It is fully integrated, with operations all over the world.

Zacks Rank & Other Stocks to Consider

The company currently carries a Zack Rank #2 (Buy).

Some other top-ranked players in the energy space are Summit Midstream Partners, LP (SMLP - Free Report) , Penn Virginia Corporation and Denbury Inc. (DEN - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Summit Midstream’s earnings for 2021 are expected to surge 114.2% year over year.

Penn’s earnings for 2021 are expected to increase 51% year over year.

Denbury’s earnings for 2021 are expected to surge 122.6% year over year.

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