Chevron 2006 Annual Report Download - page 12

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ENERGY PORTFOLIO: CONVENTIONAL ENERGY UNCONVENTIONAL ENERGY
Emerging
energy
Chevron is making strategic investments in promising new ways
to produce transportation fuels. Through our joint venture with
Sasol, the South African-based leader in gas-conversion technology,
we plan to produce ultraclean diesel fuel from natural gas. High-
quality gas-to-liquids fuels could help diversify our downstream fuel
supplies. In 2006, we also formed a new business unit to develop
ways to accelerate the commercial production of biofuels from a
number of renewable feedstock sources, including those based on
advanced cellulosic technology. We have long been involved in de-
veloping renewable energy and continue our strategy to evaluate and
capture profi table positions in renewable technologies and businesses.
> ULTRACLEAN FUELS FROM NATURAL GAS (PHOTO RIGHT): Chevron and Nigeria’s
national oil company are constructing a 34,000-barrel-per-day gas-to-liquids (GTL) plant in
Nigeria to produce ultraclean diesel fuel like that shown on the opposite page. The plant is
expected to be in operation by the end of the decade with Europe as the likely target market
for the diesel. The company also is pursuing GTL opportunities in other countries.
Alicia Boutan, vice president of
Business Development for Chevron
Technology Ventures, helped nego-
tiate our investment in a new facility
in Galveston, Texas, that will turn
renewable feedstocks into biodiesel.
The facility will have the potential
to produce 100 million gallons per
year of this clean-burning fuel, which
represents about one-half of current
U.S. production of biodiesel. Comple-
tion is expected in 2007.
RENEWABLE BIODIESEL 2006 MILESTONES
– Established research alliances to ad-
vance the development of renewable
transportation fuels
– Joined a study to demonstrate the
performance of E85, a blend of
85 percent ethanol and 15 percent
gasoline
– Installed California’s fi rst megawatt-
class hydrogen fuel cell cogenera-
tion plant
– Developed cogeneration and biomass
facilities for a municipal water pol-
lution control plant that generates
electricity from organic matter
10