Chevron U.S.A. Inc., announced definitive agreements to supply fuel linked to renewable natural gas for a Walmart Inc. demonstration of Cummins Inc.’s new 15-liter natural gas engine for heavy-duty trucks. As part of the agreements, Walmart will provide heavy-duty trucks for Cummins to integrate with the new 15-liter engine, the X15N™, which runs on CNG. After taking delivery, Walmart will field-test the finished trucks at its distribution center in Fontana, California, with Chevron supplying the trucks with renewable natural gas.
Chevron has partnerships with Brightmark LLC and California Bioenergy LLC to produce renewable natural gas from dairy farms, which under California’s Low Carbon Fuel Standard can qualify as carbon negative on a lifecycle basis. Chevron will be responsible for linking the renewable natural gas to the CNG dispensed by Walmart into its natural gas trucks.
“Chevron has positioned itself to help major fleet operators like Walmart in their efforts to decarbonize their transportation operations through the use of CNG linked to renewable natural gas,” said Andy Walz, president of Americas Fuels & Lubricants for Chevron. “As we continue to rapidly grow our renewable natural gas business, we aim to leverage the power of our partnerships to the benefit of new and existing customers who seek lower carbon transportation solutions.”
“Walmart’s collaboration with Chevron and Cummins on the new Cummins 15-liter natural gas engine is one of many technologies we are testing to reach zero emissions in our fleet, part of our broader goal to achieve zero emissions in our operations by 2040,” said Luke McCollum, vice president of Supply Chain Sustainability at Walmart. “Testing CNG linked to renewable natural gas marks a significant stepping stone for Walmart’s path to zero emissions transportation.”
In September 2021, Chevron and Cummins expanded their memorandum of understanding to include new strategic priorities relating to renewable natural gas, with an initial focus on making the transition to natural gas engines easier for fleets by improving fuel availability while allowing them to lower the lifecycle carbon intensity of their operations.
“Cummins is excited to work with Walmart and Chevron on heavy-duty natural gas trucks and fuel availability,” said Puneet Jhawar, General Manager, Natural Gas at Cummins. “The Cummins X15N natural gas powertrain allows for fleets to significantly reduce their emissions footprint starting almost immediately on a large scale with competitive equipment costs, while providing the power, range, and performance characteristics customers expect from Cummins.”
Beyond6: Chevron’s new JV will develop U.S. station network with biomethane
A newly formed joint venture (JV) between Chevron and Mercuria Energy Trading, Beyond6 will work to develop a U.S. CNG fueling network supplied with renewable natural gas. Chevron and Mercuria purchased American Natural Gas (ANG), a Beyond6 company, and its 60 CNG stations in 17 states across the country. These facilities are being rebranded as Beyond6. The rebranding process is expected to conclude by the end of June.
The goal is to grow the biomethane value chain, all the way from production to distribution. This deal complements the previously announced plan to open more than 30 Chevron-branded CNG stations by 2025.
The purchase of ANG and its rebranding to Beyond6 advances Chevron’s goal of building a large-scale, vertically integrated renewable natural gas business in the United States. They are committed to producing a tenfold increase in biomethane volumes by 2025 compared to 2020. In addition, this acquisition aims to provide lower carbon solutions for the medium- and heavy-duty vehicle market.
“At Beyond6 we believe all individuals, businesses and organizations have the power to create a cleaner and healthier world,” said Andrew West, Beyond6 founder and CEO. “We are strategic carbon reduction specialists that work with clients across the country to help them realize their most sustainable future and do so in a way that delivers value to the bottom line.”
