Chevron announced that it has successfully acquired Renewable Energy Group (REG) and its new segment Chevron Renewable Energy Group aims to focus on the transportation sector.

With this acquisition, the company is expanding its renewable fuels business and providing lower carbon solutions for the transportation sector.

By 2030, Chevron Renewable Energy Group will help grow renewable fuel production capacity to 100,000 barrels per day.

REG and Chevron have long a history of innovation in common when it comes to manufacturing lower-carbon fuels.

Due to the combination of REG’s feedstock aggregation capabilities and Chevron’s fuel distribution network, Chevron Renewable Energy Group is positioned to be a leader in alternative fuels.

As they grow their renewable fuels business, Chevron expects this acquisition to open up new opportunities.

“REG helped establish the U.S. biofuels industry, and together our companies are poised to accelerate the growth of the industry,” said Kevin Lucke, president of Chevron Renewable Energy Group.