Chevron, Exxon pursue clean gasoline as an alternative to electric cars

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HOUSTON — The two largest U.S. oil companies are testing a renewable gasoline blend on the road that they say can reduce emissions from conventional cars to levels competitive with electric vehicles (EVs).

The fuels being promoted by Chevron Corp and Exxon Mobil Corp, if marketed, are likely to extend the life of the petroleum market as part of the world’s transition to clean fuels. and electric cars.

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“We really believe there must be alternatives to light vehicles,” Chevron Americas President of Product Andy Walz said at an event on Wednesday for fuel testing on the road. “Electrification is not the only answer.”

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Chevron and Exxon have revealed in the past days test results from a partnership with automaker Toyota Motor Corp that use renewable gasoline made partly from soybeans or other non-fossil materials. The major oil companies say the mixes can be used by existing US fleets of cars and gas stations.

The tests come as the administration of US President Joe Biden last week proposed new pollution standards that could lead to electric vehicles accounting for up to two-thirds of US light vehicle sales by this year. 2032, according to government calculations.

Exxon said that bringing the cost of these renewable gasoline blends to an affordable level will depend on supportive government policies. Chevron adds that it could take years for renewable fuels to become available in the pumps.

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“We believe it will need government help to get it up and running and scale,” Walz said, referring to existing incentives, such as those for biodiesel. and renewable diesel.

The most effective way to scale renewable gasoline is through carbon pricing, but not all jurisdictions are ready for this, said Balaji Krishnamurthy, vice president of strategy and sustainability at Chevron. there.

Companies use different metrics to measure emissions. Exxon says its renewable gasoline can reduce emissions by up to 75% compared to conventional gasoline on a life cycle basis. Chevron says its blend uses 40% less carbon than traditional gasoline, including carbon intensity when making vehicles. (Reporting by Sabrina Valle; Editing by Jamie Freed)