Terviva, a pioneering agritech firm based in California, has secured an undisclosed investment from Chevron Renewable Energy Group, a prominent player in the biodiesel sector in the United States. This strategic partnership aims to enhance Terviva’s operations centered around pongamia trees, a sustainable crop that offers potential as a “second generation” feedstock for renewable fuels. Terviva CEO Naveen Sikka shared insights with AgFunderNews about the implications of this investment, emphasizing Chevron’s role as a key ally in expanding the company’s business.
While the specific amount of the investment remains confidential, Sikka highlighted that it enables Terviva to collaborate closely with Chevron on the offtake of pongamia products and the expansion of tree plantings across various geographies. He reassured stakeholders that this new partnership would not interfere with Terviva’s existing relationship with Mitsubishi Corporation, which continues to be a significant supporter of the company’s mission.
The collaboration comes at a crucial time as the biofuels industry seeks to increase the availability of lower carbon feedstocks. Jan Slaghekke, Vice President of Business Development and International Operations at Chevron Renewable Energy Group, stated that enhancing the supply of such feedstocks is vital for the sustained growth of the biofuels sector. This investment reflects a broader industry trend towards embracing more sustainable agricultural practices that do not compete with food production.
Pongamia trees are especially promising due to their ability to thrive on underutilized or “tier two agricultural land.” This characteristic allows them to be cultivated without displacing food crops, a significant concern associated with first-generation biofuels derived from crops like soy, corn, and sugarcane. Terviva, founded in 2010, has positioned pongamia as a “climate-smart” crop, capable of producing more biomass per acre than traditional oilseed crops while requiring fewer inputs. Sikka noted that Terviva’s pongamia cultivars yield oil content between 35-40%, making them a viable source for biodiesel, renewable diesel, and sustainable aviation fuel.
From a technical standpoint, pongamia oil is comparable to other vegetable oils used in renewable diesel production. However, it stands out due to its efficiency: pongamia trees yield more oil per acre and demand lower water, fertilizer, and chemical inputs. This efficiency translates to a reduced greenhouse gas intensity per unit of oil feedstock. Sikka emphasized that Terviva often cultivates pongamia on land previously deemed unsuitable for other crops, thus revitalizing these areas both ecologically and economically.
Historically, Terviva has sourced pongamia beans from India while building a domestic network of growers in the U.S. and Australia. The company has developed an intellectual property platform focused on high-yielding pongamia trees and propagation techniques that ensure scalable and consistent production in diverse climates. Sikka revealed that Terviva has already commenced selling pongamia oil feedstock through an ISCC-certified supply chain in India, with plans to expand its footprint in the U.S. and Australia.
In addition to its biofuel applications, Terviva is exploring the use of pongamia meal in animal feed, a process that requires careful processing to ensure safety and efficacy. The company has patented methods for this processing, making it a leader in the field. Furthermore, Terviva is developing techniques to remove anti-nutritional components from pongamia, aiming to tap into human food markets alongside its feed and fuel initiatives.
Sikka underscored the importance of maximizing farmers’ income through a diversified product portfolio to mitigate risks associated with market fluctuations. Terviva is actively seeking manufacturing partnerships to scale the production of edible products derived from pongamia, which could significantly enhance its market reach and profitability.
As Terviva embarks on this new chapter with Chevron, the implications of their partnership could be far-reaching, potentially transforming the biofuels landscape while promoting sustainable agricultural practices.