Chevron, Exxon developing cleaner gas as alternative to EVs
The two oil giants are testing renewable gasoline partially made from soybeans or other non-fossil feedstocks
The two largest U.S. oil companies are making moves to keep gasoline relevant and fight off the challenge from electric vehicles.
Chevron and ExxonMobil are road testing renewable gasoline blends that they say could bring down emissions from conventional autos to levels competitive with EVs.
If the fuels are made commercially available, they could extend the life of the gasoline market as part of the world's transition to cleaner fuels and electric vehicles.
"We really believe there has to be alternatives for the light duty vehicle," Chevron President of Americas Products Andy Walz said at an event on Wednesday. "Electrification is not the only answer."
BIDEN UNVEILS TOUGHEST-EVER CAR EMISSIONS RULES IN BID TO FORCE ELECTRIC VEHICLE PURCHASES
A gas pump is inserted inside an Audi vehicle at a Mobil gas station in West Hollywood, California. (REUTERS/Bing Guan / Reuters Photos)
Chevron and Exxon are testing renewable gasoline partially made from soybeans or other non-fossil feedstocks.
The fuel has been tested in a partnership with Toyota Motors.
The blends could be used by the existing U.S. car fleet and gas stations, according to the oil companies.
Last week, the Biden administration unveiled the most aggressive tailpipe emissions standards ever crafted as part of its sweeping climate agenda and efforts to push Americans to buy electric vehicles (EVs).
Logos of ExxonMobil and Chevron. (iStock / iStock)
JUST 4 IN 10 US ADULTS SAY NEXT VEHICLE MAY BE ELECTRIC, POLL SHOWS
The vehicle pollution standards, proposed by the Environmental Protection Agency and announced by the White House, will impact car model years 2027 through 2032.
Chevron said it could be years before the renewable fuel could be available in pumps.
"We believe it is going to need government help to get up and running, and get scale," Walz said.
Electric cars are parked at a charging station in Sacramento, California. (AP Photo/Rich Pedroncelli, File / AP Newsroom)
AAA CAUTIONS OVER GAS PRICES: OIL MARKET DISRUPTORS 'ALWAYS LURKING'
That help would be similar to existing incentives provided for biodiesel and renewable diesel.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 117.83 | -0.23 | -0.19% |
| CVX | CHEVRON CORP. | 162.21 | +0.28 | +0.17% |
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Exxon said its renewable gasoline could reduce emissions by as much as 75% compared to conventional gasoline on a life-cycle basis. Chevron said its blend was more than 40% less carbon intensive than traditional gasoline.
Reuters contributed to this report.