ExxonMobil, the American oil supermajor, has expanded its agreement with Global Clean Energy Holdings, and now it will become the exclusive buyer of the company’s renewable diesel, to be produced in the Bakersfield biorefinery.
Firstly, after the Biden’s announcement of an increased effort to reduce greenhouse gas emissions, ExxonMobil announced the expansion of its agreement with Global Clean Energy. The first agreement, signed back in August, 2020, included the purchase of 2,5 million barrels of renewable diesel per year.
Secondly, the expanded agreement doubles that amount to 5 million barrels a year. On the other hand, the Bakersfield biorefinery is scheduled to begin production in early 2022. The facility will leverage from Global Clean Energy’s patented camelina crop, which can significantly reduce life-cycle greenhouse gas emissions.
Thirdly, Ian Carr, president of ExxonMobil Fuels and Lubricants Company, said. “Our expanded agreement with Global Clean Energy reinforces ExxonMobil’s longstanding efforts to support society’s ambitions for lower-emission fuels.”
He also remarked. “Through our growing relationship, we remain focused on bringing renewable fuels to market that make meaningful contributions to help consumers reduce their emissions.”
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ExxonMobil and Global Clean Energy agreement to help put renewable fuels in the market
On the other hand, Richard Palmer CEO of Global Clean Energy Holdings, said. “Our work at the Bakersfield biorefinery is a perfect example of what can be accomplished by the industry; when a leader like ExxonMobil supports a growing renewables company like Global Clean Energy with long-term contracts.”
He also said. “By working together across traditional agricultural, energy and supply chain lines, we are showing how agriculture and energy, big and small, can collaborate to bring lower-carbon fuels to market.”
Furthermore, the Bakersfield biorefinery will process up to 15,000 barrels per day of renewable feedstocks; including Global Clean Energy’s proprietary camelina. The balance of renewable diesel will be produced using various non-petroleum feedstocks, including used cooking oil, soybean oil, distillers’ corn oil and other renewable sources.
Finally, according to the statement, citing data from the California Air Resources Board; renewable diesel can lower greenhouse gas emissions in 40% to 80%, when compared to petroleum-based diesel.
