Energy giant Chevron Corporation (NYSE: CVX) recently revealed that the company’s renewable energy subsidiary, Chevron Renewable Energy Group, will provide biofuels for cooking solutions provider, Restaurant Technologies.
Following the news, shares of the company gained 2.66% in yesterday’s trading session to close at $159.97 in extended trade.
The Partnership Entails Carbon Footprint Reduction
The partnership is aimed at reducing the carbon footprint of Restaurant Technologies’ commercial vehicle fleet. Interestingly, the biofuels will be made from the millions of gallons of used cooking oil from Restaurant Technologies’ major restaurant chains across the U.S.
With the goal of creating a working circular economy, the used oil will act as a raw material to produce biodiesel and renewable diesel. The fuels, which are lower carbon alternatives to traditional petroleum diesel, are traditionally utilized as a blend. This may include the two fuels being blended with one another to produce a 100% renewable fuel.
Initially, Restaurant Technologies will use a B30-B50 blend, 30-50% InfiniD (biodiesel), with the remainder being petroleum diesel.
Is Chevron a Good Stock to Buy Now?
With a dividend yield of 3.55%, which is higher than the sector average of 3.095%, top investors remain bullish and are loading up on Chevron stock.
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on CVX. Further, 8.1% of the top portfolios tracked by TipRanks, increased their exposure to CVX stock over the past 30 days.
Overall, the Wall Street community remains cautiously optimistic about the stock with a Moderate Buy consensus rating based on 10 Buys, five Holds, and one Sell. The CVX average price forecast of $178.94 implies the stock has an upside potential of 12.1% from current levels. Shares have gained 55.5% over the past year.
Chevron continues to benefit from a persistent rise in energy prices globally. However, renewable energy sources will ultimately prevail. In that regard, Chevron’s partnership with Restaurant Technologies will not only contribute to the objective of a reduced carbon footprint but will also enable the company to improve its renewable energy capabilities.
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