Chevron’s SAF Strategy 2025: From Acquisition to Global Scale

Industry Adoption: How Chevron is Engineering the Future of Sustainable Aviation Fuel

Chevron’s strategy in the Sustainable Aviation Fuel (SAF) market has undergone a significant evolution, shifting from foundational acquisitions between 2021 and 2024 to aggressive execution and technological validation in 2025. The earlier period was defined by strategic positioning. The landmark $3.15 billion acquisition of Renewable Energy Group (REG) in 2022 was the pivotal move, immediately providing Chevron with scale, feedstock sourcing expertise, and a platform to pursue its ambitious goal of producing 100,000 barrels per day of renewable fuels by 2030. This era focused on building a base through partnerships aimed at securing the value chain, such as the $600 million joint venture with Bunge for soybean oil feedstock and an MOU with Delta Air Lines and Google to establish a framework for emissions transparency. These actions signaled a company methodically acquiring the necessary components for a large-scale renewable fuels business.

The year 2025 marks a clear inflection point where strategy transitioned to tangible, scaled-up commercial reality. The focus has sharpened from acquiring capabilities to deploying them. The commissioning of the expanded Geismar refinery in February 2025, which quadrupled capacity to 340 million gallons per year, transformed it into North America’s largest renewable fuels facility and a cornerstone of Chevron’s production ambitions. This was complemented by investments in future growth, including the June 2025 opening of a 45,000-square-foot technology center in Iowa dedicated to scaling next-generation fuels. Technologically, Chevron moved from partnering on established pathways to proving out advanced alternatives. The successful SAF pilot at INA’s Rijeka Refinery in July 2025, using Chevron Lummus Global (CLG) technology to co-process biogenic feedstock, validated a capital-efficient model for repurposing existing infrastructure. Furthermore, the June 2025 partnership with Neste to commercialize lignocellulosic waste-to-fuel technology demonstrates a strategic push to solve the long-term feedstock challenge, moving beyond food-based oils. This shift from planning to proving, combined with a massive market projection of $357.41 billion by 2035, underscores Chevron’s move to not just participate in, but actively shape the global SAF market.

Table: Chevron’s Strategic Investments in SAF Enablement

Table: Chevron’s SAF Partnership Ecosystem

Geography: Chevron’s SAF Ambitions Go Global

Between 2021 and 2024, Chevron’s SAF activities were overwhelmingly concentrated in North America. The strategy was built around a US-centric core, evidenced by the acquisition of Iowa-based REG, the Bunge joint venture to bolster feedstock processing in Louisiana and Illinois, and the pilot production of SAF at the El Segundo refinery in California. Investments in startups like Raven SR and Aether Fuels, along with the Gevo partnership, were also focused on US-based technologies and facilities. This geographic focus allowed Chevron to leverage its existing domestic infrastructure and capitalize on emerging policy support like the Inflation Reduction Act.

From 2025 onwards, Chevron’s geographic footprint has expanded significantly, indicating a shift from a domestic build-out to a global deployment and technology-licensing strategy. The successful SAF pilot with INA at the Rijeka Refinery in Croatia in July 2025 marks a pivotal entry into the European market, proving its technology’s applicability in foreign-owned, existing assets. This is reinforced by its CLG joint venture providing technology for Firefly Green Fuels’ sewage-to-SAF plant in the UK. The partnership with Finland’s Neste to develop lignocellulosic technology is inherently global in its ambition. Simultaneously, Chevron is looking to the Asia-Pacific, underscored by the March 2024 MOU with JX Nippon to develop a CCS value chain and the June 2024 selection of CLG’s ISOTERRA technology for a major SAF project in China. This global push demonstrates a two-pronged strategy: operating large-scale production assets in the US while licensing its advanced technology to partners in Europe and Asia, capturing value across multiple high-growth regions.

Technology Maturity: Chevron’s Shift from Acquisition to Application

From 2021 to 2024, Chevron’s approach to technology was focused on acquiring and developing a portfolio of SAF production pathways at varying maturity levels. The primary emphasis was on the commercially proven Hydroprocessed Esters and Fatty Acids (HEFA) pathway, solidified by the 2022 acquisition of REG, a major producer of HEFA-based renewable diesel. Concurrently, Chevron’s joint venture, CLG, was commercializing enabling technologies like the ISOTERRA process, designed to retrofit existing hydrotreaters for renewable feedstock co-processing. While investing in earlier-stage technologies—such as alcohol-to-jet (Gevo partnership), waste-to-fuels (Raven SR investment), and algae-to-biofuel (Viridos investment)—these remained largely in the pre-commercial or pilot-planning phases. The strategy was to control a mature technology (HEFA) for near-term production while placing strategic bets on next-generation alternatives.

The year 2025 has been defined by the validation and scaling of these technologies. The HEFA pathway reached massive commercial scale with the 340-million-gallon-per-year Geismar expansion coming online. Critically, CLG’s ISOTERRA technology moved from a commercially available process to a proven application with the successful pilot at INA’s refinery in Croatia, providing a crucial validation point for its refinery conversion model. The most significant shift is the acceleration of advanced technologies. The partnership with Neste has advanced lignocellulosic waste-to-fuel technology past a proof-of-concept, moving it significantly closer to commercial reality. The opening of the Iowa technology center is a physical commitment to de-risk and scale these emerging pathways. The technological focus has clearly shifted from developing a portfolio on paper to demonstrating viability at pilot and commercial scales, narrowing the gap between R&D and revenue generation.

Table: SWOT Analysis of Chevron’s SAF Strategy

Forward-Looking Insights: What to Expect from Chevron’s SAF Playbook

The flurry of activity in 2025 provides clear signals about Chevron’s trajectory for the coming year. The company’s strategy is now firing on all cylinders: scaling existing technology, validating conversion models, and accelerating next-generation pathways. Market actors should expect a series of announcements translating these strategic successes into commercial contracts. With the Geismar facility now operating at a massive 340 million-gallon-per-year capacity, the announcement of significant, long-term SAF offtake agreements with major airlines and logistics firms is a near-certainty. These deals will be critical to de-risking the enormous capital investment and securing stable revenue streams.

The most important signal to watch is the progression of the partnership with Neste. Following a successful proof-of-concept for their lignocellulosic waste-to-fuel technology, the next logical milestone is a final investment decision on a pilot or commercial-scale plant. Such a move would represent a major industry breakthrough, signaling a credible path beyond the feedstock constraints of the HEFA process. Concurrently, after the successful pilot in Croatia, expect Chevron Lummus Global to aggressively market its ISOTERRA co-processing technology, leading to more licensing agreements with third-party refiners globally. Finally, Chevron’s November 2025 exit from a major biomass-based diesel trade group suggests a company confident in charting its own course on policy. Monitor how Chevron engages with regulators on rules like the 45Z Clean Fuel Production Tax Credit, as its independent stance could shape its competitive position and future investment decisions in a rapidly evolving market.

Frequently Asked Questions

What was the single most important move Chevron made to enter the SAF market?
The pivotal move was the $3.15 billion acquisition of Renewable Energy Group (REG) in 2022. This single transaction immediately provided Chevron with large-scale production capabilities, deep expertise in sourcing feedstocks, and a dedicated platform to pursue its ambitious goal of producing 100,000 barrels of renewable fuels per day by 2030.

How did Chevron’s SAF strategy evolve in 2025?
In 2025, Chevron’s strategy shifted decisively from acquiring capabilities to deploying them at scale. Instead of just buying companies and forming partnerships, it began executing on its plans. This was marked by the commissioning of the expanded 340-million-gallon-per-year Geismar refinery and successfully piloting its co-processing technology in Europe, proving its commercial and technical readiness.

How is Chevron addressing the long-term challenge of limited feedstock supply for SAF?
Chevron is tackling the feedstock challenge by moving beyond traditional oils and fats. It is investing in next-generation sources like pongamia trees (through its Terviva partnership), algae (Viridos investment), and partnering with Neste to develop technology that converts non-food lignocellulosic waste into fuel. This diversifies its supply chain for more sustainable, long-term growth.

Is Chevron’s SAF strategy focused only on the United States?
No. While its initial strategy was concentrated in North America, Chevron is now expanding globally. It is using its joint venture, Chevron Lummus Global (CLG), to license its proprietary technology to partners in Europe (like INA in Croatia and Firefly in the UK) and is exploring opportunities in the Asia-Pacific region. Its strategy combines operating its own plants in the US with being a technology provider worldwide.

What is the significance of the successful pilot project at the Rijeka Refinery in Croatia?
The pilot in Croatia was a crucial validation point. It proved that Chevron’s proprietary technology (via its CLG joint venture) can be used to efficiently retrofit existing oil refineries to co-process biogenic materials into SAF. This establishes a capital-efficient, scalable business model for Chevron to license its technology to refiners globally, accelerating SAF production without requiring them to build entirely new plants.