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News Release

NREL, Chevron Establish Research Alliance to Advance Cellulosic Biofuels

Collaboration to focus on next-generation production technologies for renewable fuels

October 4, 2006

Chevron Corporation (NYSE: CVX) and the U.S. Department of Energy's National Renewable Energy Laboratory (NREL), headquartered in Golden, Colo., today announced a strategic research alliance to advance the development of renewable transportation fuels.

Chevron Technology Ventures LLC (CTV), a subsidiary of Chevron Corporation, and NREL have signed a five-year agreement to research and develop new production technologies for biofuels. Researchers from CTV and NREL will collaborate on projects to develop the next generation of process technologies that will convert cellulosic biomass such as forestry and agricultural wastes into biofuels such as ethanol and renewable diesel.

"Our goal is to further diversify the world's energy sources in order to help meet the growth in future energy demand," said Donald Paul, vice president and chief technology officer, Chevron Corporation. "Through this public-private collaboration we hope to broaden the energy mix by accelerating the development of the next generation of process technologies that will convert cellulosic biomass into biofuels. Process efficiency and suitability for industrial-scale deployment, similar to today's transportation infrastructure systems, are key success factors."

NREL's participation in the alliance upholds the Department of Energy's (DOE) mission to advance the national, economic and energy security of the United States and to promote scientific and technological innovation in support of that mission.

&#38#38#160;"Increasing the amount of fuels we can make from America's farms, forests and fields will greatly enhance the nation's energy security and economy and help the environment," said NREL Director Dan Arvizu. "Agreements such as this will help us accomplish that."

CTV will also fund research which complements DOE-sponsored work at NREL on bio-oil reforming, a process by which bio-oils derived from the decomposition of biological feedstocks are then converted into hydrogen.

This research may expedite the development of a feed-flexible, distributed-reforming process for renewable hydrogen production as well as provide the hydrogen necessary in some potential biofuels conversion technologies.

"We believe that for the next generation of biofuels production to become commercially viable, there must be flexibility to diversify the feedstocks, and the processes by which the biofuels are produced must also increase in efficiency and effectiveness," said Rick Zalesky, vice president of Biofuels and Hydrogen, CTV. "This research will address both of these fundamental challenges."

The alliance with NREL is the third biofuels research partnership launched by Chevron this year. Chevron recently announced research initiatives with the University of California, Davis and the Georgia Institute of Technology focusing on cellulosic biofuels enabled by advanced manufacturing technologies for distributed energy production.

Chevron is investing across the energy spectrum to develop energy sources for future generations by expanding the capabilities of today's alternative and renewable energy technologies. Since 2000, Chevron Corporation, through its various subsidiaries, has spent more than $1.5 billion on renewable energy projects and on delivering energy efficiency solutions. Focus areas include geothermal power, biofuels, hydrogen and advanced batteries as well as application of wind and solar technologies. Chevron is the largest renewable energy producer among global oil and gas companies, producing 1,152 megawatts of renewable energy primarily from geothermal operations.

About Chevron Technology Ventures
Chevron Technology Ventures LLC, a subsidiary of Chevron Corporation, identifies, develops and commercializes emerging technologies and new energy systems including hydrogen-related technologies, advanced energy storage technologies, renewable energy and nanotechnology. Chevron is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing, and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

About the National Renewable Energy Laboratory
NREL is the U.S. Department of Energy's primary national laboratory for renewable energy and energy efficiency research and development. NREL is operated for DOE by Midwest Research Institute and Battelle.
The NREL supports the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE) Biomass Program. NREL is the lead national laboratory of the virtual National Bioenergy Center, which was established to support and help DOE coordinate the nation's biomass research activities. The National Bioenergy Center has primary responsibility for carrying out the agenda of the Office of the Biomass Program of DOE's Office of Energy Efficiency and Renewable Energy and other related goals. Collaborating with industrial, academic, related EERE programs and other governmental research, development and commercialization efforts is central to that agenda.

Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.

Some of the items discussed in this press release are forward-looking statements about Chevron's operations. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information contact NREL Public Relations at 303-275-4090.
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