Chevron is taking a step towards environmental sustainability by purchasing Iowa-based Renewable Energy Group, Inc. (REG) for $3.15 billion. The acquisition comes as Chevron and other Big Oil companies face intense pressure to overhaul their businesses to reduce carbon emissions from fossil fuels. Last year, Chevron committed to tripling its spending to $10 million on lower-carbon energy through 2028.

"The [REG] deal is expected to accelerate progress toward Chevron's goal to grow renewable fuels production capacity to 100,000 barrels per day by 2030," according to Reuters. The deal symbolizes an important step towards Chevron meeting its net-zero "aspiration" goals by 2050.

REG has been producing biodiesel since 1996. The company sources primarily from waste products such as used cooking oil and corn oil. "Biodiesel has up to 86% fewer greenhouse gas emissions than petroleum diesel," writes Donnelle Eller of the Des Moines Register. The company has already made great strides in sustainable fuel production, producing 519 million gallons of cleaner fuel and reducing carbon emissions by 4.2 million metric tons.