Chevron Corp., Weyerhaeuser to Create Biofuels Alliance

Chevron Corp. and Weyerhaeuser Co. will work together to commercialize the production of biofuels from cellulose-based sources. The companies plan to research and develop technology that can transform wood fiber and other non-food sources of cellulose into economical clean-burning biofuels for cars and trucks. Chevron turned to Weyerhaeuser because of the forest and mill system crops planted on the company's forest plantations.

The companies believe cellulosic biofuels can become a popular low-carbon alternative transportation fuel. But there are some technical barriers to overcome. "There are several technology hurdles that need to be addressed before large-scale commercialization of cellulosic feedstocks occurs," says Dave O'Reilly, chairman and CEO of Chevron. "We believe this partnership will accelerate the achievement of that reality."