Chevron restarts idled Iowa biodiesel plant on Landus soybean deal

Nov 12 (Reuters) - US oil major Chevron CVX.N said on Thursday it would restart its biodiesel production facility in Ralston, Iowa, about two years after it was idled, citing improved market conditions and a feedstock supply deal with farmer-owned Landus Cooperative.

Chevron idled the facility, which has a biodiesel production capacity of nearly 42 million gallons per year, after a market downturn in 2024.

Here are more details:

• The restart is supported by a commercial and operational agreement with Landus, whose neighboring soybean processing facility gives the Ralston plant an efficient feedstock supply chain

• Chevron seeks to strengthen fuel supplies amid tighter global oil markets

• The restart is expected to increase biodiesel supplies for regional customers, support the broader diesel market and create additional demand for soybeans grown by Iowa farmers

• Landus' facility processes more than 28 million bushels of soybeans a year, making it the largest mechanical crush plant in the US, Chevron said

• The restart will be carried out in stages, covering staffing, maintenance, safety and operational-readiness activities before production resumes