Chevron’s Geismar biorefinery getting $100 million in bond money, Jeff Landry says

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Louisiana is planning to hand a $100 million bond allocation to Chevron for a $950 million expansion of a Geismar biorefinery that the petrochemical giant bought in mid-2022, Gov. Jeff Landry announced Monday.

Of the $100 million, $83 million will be made available immediately, while the remaining $17 million will come at a later date, Landry said at the Louisiana Mid-Continent Oil and Gas Association’s annual conference.

The State Bond Commission approved a bond issuance in January 2023 for the Chevron project, commission records show. However, a news release from Landry’s office said former Gov. John Bel Edwards never sent the money to Chevron.

Officials from Landry’s office and Chevron said they were not sure why the Edwards administration never sent the money to Chevron.

A Chevron spokesperson declined to divulge additional details on whether the bond allocation was critical to finish the expansion.

Kate Kelly, Landry’s communications director, said the money should be directed through the Louisiana Public Facilities Authority, which will issue the bonds on behalf of Chevron.

The project, which began construction in 2021 and should wrap up sometime later this year, will increase the plant’s capacity from 100 million gallons of renewable diesel per year to up to 340 million gallons per year. It is expected to create 90 new, permanent jobs.

Chevron bought the Geismar site in June 2022 when it purchased Renewable Energy Group, or REG, for $3.15 billion.

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