ExxonMobil increases purchases of renewable diesel from Global Clean Energy Holdings to up to 5M barrels per year
ExxonMobil and Global Clean Energy have expanded their five-year agreement to increase ExxonMobil’s purchase of renewable diesel to up to 5 million barrels per year. ExxonMobil will be the exclusive buyer of renewable diesel from Global Clean Energy’s biorefinery in Bakersfield, California, which is on schedule to begin production in early 2022. (Earlier post.)
The renewable diesel leverages Global Clean Energy’s patented camelina crop, which can significantly reduce life-cycle greenhouse gas emissions.
Based on analysis of California Air Resources Board data, renewable diesel from various non-petroleum feedstocks can provide life-cycle greenhouse gas emissions reductions of approximately 40% to 80% compared to petroleum-based diesel. When cultivated as a cover crop on rotational dryland, camelina can help meet the growing global demand for lower-carbon non-petroleum feedstocks.
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.
The original agreement signed in August 2020 committed ExxonMobil to purchase 2.5 million barrels of renewable diesel per year. Following production startup, ExxonMobil plans to distribute the renewable diesel within California and potentially other US and international markets.