Chevron Finalizes Renewable Energy Group Purchase, Making Ames its Biofuel Headquarters

Chevron Corp. completed its $3.15 billion purchase Monday of Renewable Energy Group, the biodiesel and renewable diesel company based in Ames that will become the oil giant’s renewable fuels headquarters.

Chevron executive Kevin Lucke, an Iowan who has been named president of Chevron Renewable Energy Group, said closing the deal makes way for growth. Chevron wants to produce about 4 million gallons of renewable fuel daily by 2030, he said. Renewable Energy Group, called REG, already provides about a third of that production, Lucke told the Register.

“REG has been a leader in our industry from its inception, being one of the very first companies to build a biodiesel plant in the United States,” said Donnell Rehagen, CEO of Clean Fuels Alliance America, an industry advocacy group based in Missouri.

“This leadership in renewable fuels, coupled with the history and strength in the energy sector Chevron brings, will continue to build on the momentum our industry is experiencing as the country continues on its path of carbon reduction through cleaner fuels,” Rehagen said in a statement.

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