Chevron, the top American oil company, announced this Tuesday it will triple its investment to $10 billion through 2028 to advance low carbon businesses. It also intends to grow its renewable fuels, hydrogen, and carbon capture through 2030.
The company announced its new investment plan during its Energy Transition Spotlight event. Michael Wirth, Chevron’s chairman and CEO, said. “Chevron intends to be a leader in advancing a lower carbon future. Our planned actions target sectors of the economy that are harder to abate and leverage our capabilities, assets, and customer relationships.”
Among the targets of the new investment agenda are to grow the company’s renewable natural gas production to 40,000 MMBtu per day; to supply a network of stations serving heavy-duty transport customers. Also, to increase its renewable fuels production capacity to 00,000 barrels per day. Such an increase will also apply to renewable diesel and sustainable aviation fuel.
The company also intends to increase hydrogen production to 150,000 tons per year to supply industrial; also, power, and heavy-duty transport customers; and to increase carbon capture and offsets to 25 million tons per year by developing regional hubs in partnership with others.
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Chevron not ready for net-zero committments
As said above, to achieve such scale, the company will invest $10 billion through 2028; including $2 billion to lower the carbon intensity of its operations. Jeff Gustavson, president of Chevron New Energies, said about the new commitment. “Renewable fuels, hydrogen and carbon capture target customers such as airlines, transport companies, and industrial producers… these sectors of the economy are not easily electrified; and customers are seeking lower-carbon fuels and other solutions to reduce carbon emissions.”
On the other hand, according to Reuters, the company is not ready to commit to net-zero targets. When asked about the matter, Wirth said. “Our company does not want to be in a position in which we lay out ambitions that we don’t believe are realistic and deliverable.”
He also remarked that only a small part of its Board of Directors support the strategy to invest in less-profitable solar and wind power. “The board is looking to see; how do you deliver a strategy that meets the needs of shareholders today and the expectations of shareholders for the future?”
Finally, the company maintains its goal of paring greenhouse gas intensity by 35% through 2028; when compared to 2016 levels from its oil and gas output.