Chevron is no longer a member of a trade group supporting the US biodiesel and renewable diesel industry, reflecting increasing divides between oil companies and the Farm Belt over fuel policy.
The US oil major decided not to renew its membership in Clean Fuels Alliance America after an annual renewal period in October, the trade group confirmed to Argus. The organization represents some diverse interests across the biofuel supply chain, including farm groups, soybean processors, small biodiesel plants and large renewable diesel refiners.
"The decision to exit was made as part of a larger, enterprise-wide cost reduction effort that included Chevron's participation in many trade associations and other sponsorships across many lines of business", the company said. "We will continue to stay engaged with the industry and advocate for biodiesel and renewable diesel."
A company lobbying report shows Chevron gave between $100,000-$499,999 to Clean Fuels last year — more than it did to the Advanced Biofuels Association, a more refiner-focused group that still counts Chevron as a member. Chevron inherited its Clean Fuels membership after it purchased biofuel producer Renewable Energy Group in 2022.
Chevron's exit is notable since it owns more biodiesel plants than any other company in the US and recently more than tripled capacity at a Gulf Coast renewable diesel plant. But the company has pulled back from some biofuel investments as margins have dipped, indefinitely closing two biodiesel plants last year and laying off workers this year at its renewable fuel headquarters in Iowa.
Large refiners have bristled at recent policy changes that help US farmers but saddle fuel producers with steeper feedstock costs. Clean Fuels in comments to President Donald Trump's administration this summer said that there was "not consensus among our members" about a plan to halve credits under a federal biofuel blend mandate for biofuels made from foreign feedstocks.
Chevron has also differed from Clean Fuels in its support for co-processing renewable feedstocks at existing oil refineries and in its opposition to a Trump plan to make large oil companies blend more biofuels to offset the impact of giving some of their smaller rivals a pass from old biofuel quotas.
The coalition supporting biofuels has also grown less steady in recent years as some smaller biodiesel producers push for more support to compete against better-capitalized renewable diesel refiners, which draw from the same feedstocks. Midcontinent biodiesel producers Incobrasa, Western Dubuque Biodiesel and Paseo Cargill Energy, a joint venture involving the agribusiness giant and Missouri farmers, also exited the group this year.
