Chevron to Buy Biodiesel Maker Renewable Energy Group

Chevron said it would buy biodiesel maker Renewable Energy Group in an all-cash deal valued at $3.15 billion as the oil major looks to boost its clean-energy business. Chevron will pay $61.5 for each share of Renewable Energy, representing a premium of over 40% to the company’s last closing price.

Chevron has set a target to cut operational emissions to net zero by 2050 and in September pledged to invest $10 billion to reduce its carbon emissions footprint through 2028, with about $3 billion earmarked for renewable fuels.

Ames, Iowa-based Renewable Energy is a producer and supplier of cleaner fuels like biodiesel and renewable diesel.

The deal is expected to accelerate progress toward ChevronΓÇÖs goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030 and brings additional feedstock supplies and pre-treatment facilities, the company said.