In a newly announced deal, Chevron is buying Renewable Energy Group giving it control of the largest U.S. producer of biomass-based diesel. This all-cash transaction is reported to be valued at $61.50 per share which accumulates to a total deal worth $3.15 billion. Liz McCune director of communications at Clean Fuels Alliance America says this purchase is a great sign for the future of biofuels.

She says although there are a lot of options currently being offered to lower carbon emissions, biofuels can provide the most immediate impact.

McCune also notes that it’s going to take a variety of solutions to reach their goal and looks forward to working with all companies to promote Biofuels.

Chevron is based in San Ramon, California, and is a major fuel supplier in the California market, where renewable diesel is in high demand to meet the state’s low carbon fuel standard.