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    Chevron to spend $10bn on boosting renewable energy production

    Chevron Corp Update

    Chevron will spend $ 10 billion over the next seven years to increase renewable energy production and reduce carbon pollution. This is due to increasing pressure on US oil producers to purify their operations.

    Clean energy spending pledges are more than three times the amount previously promised by the US Group, but on an annual basis, less than one-tenth of the planned capital spending of approximately $ 15 billion annually from now to 2025.

    “Chevron intends to be a leader in the future of low carbon,” Chevron CEO Mike Worth said on Tuesday. “Our planned actions are aimed at sectors of the economy that are more difficult to leverage and undermine our capabilities, assets and customer relationships.”

    The Chevron move is because investors and campaign participants are putting pressure on oil producers to help tackle global warming. In May, Chevron shareholders opposed management and voted for a resolution requiring the company to set targets for so-called Scope 3 emissions, or contamination from the hydrocarbon products it sells.

    The vote was voted by rival ExxonMobil shareholders Shocking defeat Election new directors appointed by activist hedge funds to the management of their company Engine No1Claiming that SuperMajor was focusing on fossil fuels was jeopardizing the company’s future.

    Engine No. 1 has also been in contact with Chevron boards for the past few weeks.

    Chevron announced on Tuesday that it would increase production of hydrogen, renewable natural gas derived from organic materials, and renewable liquid fuels used for transportation, capturing or offsetting 25 million tons of carbon annually by 2030. Chevron emissions The carbon dioxide equivalent from the operation was 54 million tons.

    The group has announced several small low-carbon transactions in recent weeks, including a deal to supply Delta with aviation biofuels. We have also collaborated with Caterpillar to launch a hydrogen-based heavy industry project that includes a new hydrogen propulsion train.

    Tuesday’s announcement did not include a new net-zero target or new efforts to reduce Scope 3 emissions, equivalent to more than 580 million tonnes of CO2 last year.

    European super-majors such as BP and France’s Total Energies planned to build large solar and wind segments, but Chevron and Exxon resisted subsequent calls.

    Worth said bumper profits from Chevron’s “base business” over the next few years will help raise additional spending to clean up the business.

    “We are confident that we can provide long-term value to our shareholders through a strategy that combines a high-profit, low-carbon traditional business with a faster-growing, more profitable new energy business. “

    Chevron said it is sticking to its goal of reducing greenhouse gas “strength” (emissions per barrel of production), which by 2028 is “35% expected from 2016 levels.” It corresponds to “reduction”.

    Analysts at RBC Capital Markets said Chevron is “indulgent” in energy conversion, but “as some peers recently announced, it mentions long-term” net zero “related goals for the release. I was surprised that I didn’t do it. “

    “It looks like a step forward, but it’s a big leap,” said Andrew Logan, senior director of oil and gas at Ceres, which coordinates investor behavior in response to climate change.

    Chevron to spend $10bn on boosting renewable energy production Source link Chevron to spend $10bn on boosting renewable energy production

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