Chevron U.S.A. Inc. plans to restart its biodiesel production facility in Ralston, Iowa, following improved market conditions and a commercial and operational agreement with farmer-owned Landus Cooperative. The facility has an annual production capacity of nearly 42 million gallons and has remained idle since 2024.
The agreement will connect the biodiesel plant with Landus’ neighbouring soybean processing facility, providing an established feedstock supply chain. Landus processes more than 28 million bushels of soybeans annually at its Ralston operation, which Chevron describes as the largest mechanical soybean crush facility in the United States. For the wider fuel market, the IEA’s marine biodiesel demand forecast tracks where demand is expected to grow.
Chevron announced the planned restart on 12 November 2026. Once fully operational, the facility is expected to increase biodiesel availability for regional customers, support the wider diesel market and create additional demand for soybeans grown by Iowa farmers.
The restart will take place in stages, involving staffing, maintenance, safety checks and operational-readiness activities before production resumes. Chevron has not provided a confirmed date for the return to production.
Chevron cites improved biodiesel market conditions
Chevron said the decision to restart the Ralston facility follows an improvement in biodiesel market conditions. The company had idled the plant in 2024 following a downturn in the market.
The commercial and operational agreement with Landus is central to the restart plan. The neighbouring soybean processing facility provides access to feedstock and connects agricultural processing with biodiesel production at the same location.
Andy Walz, Chevron president of Downstream, Midstream & Chemicals, said:
“Restarting the Ralston facility reflects improved market conditions and Chevron’s commitment to helping meet our customers’ energy demands. As global oil markets remain tight, Chevron is taking practical steps across our entire system to help strengthen fuel supply. Bringing Ralston back online will enable additional biodiesel production capacity while supporting the communities and customers we serve.”
The restart is also expected to create employment and contracting opportunities in the region. However, Chevron said the timing and scope of additional workforce requirements are still being assessed.
Landus partnership provides soybean feedstock supply
Landus Cooperative, an Iowa-based farmer-owned agricultural services company, operates the neighbouring soybean processing facility in Ralston. Its processing operation handles more than 28 million bushels of soybeans annually.
The proximity of the two facilities is expected to support feedstock supply for biodiesel production while creating additional market opportunities for soybean growers in Iowa.
Eric Heismeyer, Landus president and CEO, said:
“The combination of soy processing and biodiesel production at the Ralston site has long represented a powerful partnership among our companies, communities and stakeholders,”
He added:
“Landus is proud to collaborate with Chevron on this important step toward increased market access for our farmer owners, and in doing so, contribute to Iowa’s collective renewable fuel and agriculture leadership.”
Landus has recently made updates to its Ralston processing facility, according to Chevron. The cooperative’s wider operations span six US states and Mexico, serving more than 5,500 farmer members.
Ralston facility to restore nearly 42 million gallons of annual biodiesel capacity
At full production, the Ralston plant has the capacity to produce nearly 42 million gallons of biodiesel annually. Its return would restore a significant volume of production capacity to the regional market.
The facility was idled in 2024 after market conditions deteriorated. Agricultural and biodiesel industry publication DTN reported that the shutdown took place in March 2024 and that a Chevron spokesperson anticipated production could resume by mid-2027. Chevron’s announcement itself, however, does not confirm this timeline.
The planned restart also comes as Chevron reports increased activity across its conventional and renewable fuels operations. The company said its US petroleum refineries operated at nearly 98% utilisation in the third quarter of 2026 and that it achieved monthly renewable diesel and biodiesel production records during the year.
Chevron produces both biodiesel and renewable diesel, which are distinct fuels with different production processes. The Ralston facility covered by this announcement is a biodiesel plant.
Bioenergy Business Analysis
Chevron’s planned restart highlights the importance of feedstock integration and market conditions in determining the operating economics of biodiesel facilities. The Ralston arrangement connects soybean processing directly with biodiesel production, potentially improving feedstock access and creating a more integrated agricultural value chain.
The plant’s nearly 42-million-gallon annual capacity is significant for regional biodiesel supply. Its return would also provide an additional outlet for Iowa-grown soybeans, linking fuel production with agricultural markets and rural economic activity.
However, the restart remains a staged process rather than a completed return to production. Staffing, maintenance, safety and operational-readiness activities must take place before the facility resumes operations. The absence of a firm production date means the timing of additional biodiesel supply remains uncertain.
