Chevron to step up investment in renewable fuels, hydrogen, carbon capture

US oil group Chevron Corp (NYSE:CVX) plans to invest over USD 10 billion (EUR 8.5bn) in lower-carbon businesses through 2028, more than triple its previous target of USD 3 billion.

The announcement was made in a news release ahead of the company’s Energy Transition Spotlight meeting with security analysts today.

Chevron has set 2030 objectives for new energy businesses. By that year, it will seek to reach renewable natural gas production of 40,000 MMBtu per day to supply heavy duty transport vehicles, and to boost its renewable fuels production capacity to 100,000 barrels per day to respond to a growing demand for renewable diesel and sustainable aviation fuel.

The group will also aim to produce 150,000 tonnes of hydrogen per year for industrial, power and heavy duty transport use. Further, it plans to increase carbon capture and offsets by developing regional hubs with partners.

“Our planned actions target sectors of the economy that are harder to abate and leverage our capabilities, assets, and customer relationships,” said Chevron’s chairman and chief executive Michael Wirth.

Renewable fuels, hydrogen and carbon capture target the aviation, transportation and industrial sectors, where electrification is not easy and customers are seeking solutions to reduce carbon emissions, explained Jeff Gustavson, president of Chevron New Energies.

The planned USD-10-billion spend includes USD 2 billion to reduce the carbon intensity of Chevron’s operations.

(USD 1 = EUR 0.849)

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