US-based publicly traded oil and gas company ExxonMobil and renewable energy company, Global Clean Energy have entered into an agreement for renewable diesel.

Under the five-year agreement, ExxonMobil to acquire 2.5 million barrels of renewable diesel annually from a California bio-refinery.

Global Clean Energy will supply renewable diesel from a refinery located in Bakersfield, California, which is being retooled to produce renewable diesel.

Renewable diesel at the refinery will be produced using Global Clean Energy’s patented varieties of camelina, a fallow land crop that does not displace food crops, and other non-petroleum feedstocks.

ExxonMobil to distribute the renewable diesel within California

ExxonMobil Fuels and Lubricants Company president Bryan Milton said: “Our agreement with Global Clean Energy builds on ExxonMobil’s longstanding efforts to develop and offer products that help meet society’s energy needs while reducing environmental impacts.

“Chemically similar to petroleum-based diesel, renewable diesel can be readily blended for use in engines on the market today.”

The company said that it is planning to distribute the renewable diesel within California and potentially to other domestic and international markets.

It also said that other non-petroleum feedstocks that include used cooking oil, soybean oil, distillers’ corn oil and other renewable sources will also be refined to produce the renewable diesel.

Global Clean Energy Holdings CEO Richard Palmer said: “Our relationship with ExxonMobil is a perfect fit for Global Clean Energy and the Bakersfield biorefinery because it leverages ExxonMobil’s scale and unrivaled market perspective to unlock value for both companies.

“By combining upstream feedstock supply and downstream production, we are moving toward the fully integrated production model pioneered by ExxonMobil.”

In April this year, ExxonMobil has started field trials of eight emerging methane detection technologies, including satellite and aerial surveillance monitoring, at nearly 1,000 sites in Texas and New Mexico to further reduce methane emissions.