Chevron spends 10 billion U.S. dollars to promote clean energy development

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Chevron Update

Chevron will spend US$10 billion in the next seven years to increase renewable energy production and reduce carbon pollution, as US oil producers face increasing pressure to clean up their operations.

The clean energy expenditure commitment is more than three times the amount previously committed by the American group, but from now to 2025, the annual capital expenditure plan is less than one-tenth of its approximately 15 billion US dollars a year.

“Chevron intends to become a leader in advancing a low-carbon future,” Chevron CEO Mike Worth said on Tuesday. “The actions we plan to take are aimed at economic sectors that are difficult to restrain and use our capabilities, assets and customer relationships.”

Chevron’s move comes at a time when investors and activists are increasing pressure on oil producers to help combat global warming. In May of this year, Chevron shareholders ignored management and voted to pass a resolution requiring the company to set targets for so-called Scope 3 emissions or the pollution of the hydrocarbon products it sells.

The vote was announced on the same day as the shareholders of rival Exxon Mobil Shocking failure Go to the management of their company and elect new board members nominated by radical hedge funds No. 1 engine, Claiming that the super giant’s focus on fossil fuels puts the company’s future in jeopardy.

In recent weeks, Engine 1 has also contacted Chevron’s board of directors.

On Tuesday, Chevron said it would increase the production of hydrogen, renewable natural gas derived from organic materials, and renewable liquid fuels for transportation, and capture or offset 25 million tons of carbon annually by 2030. last year, Chevron’s emissions The carbon dioxide equivalent from operations reached 54 million tons.

The group has announced several small-scale deals with a low-carbon focus in recent weeks, including an agreement to supply aviation biofuels to Delta Air Lines. It has also established hydrogen-based heavy industry projects with Caterpillar, including new hydrogen-powered trains.

Tuesday’s announcement did not include a new net-zero emission target or a new commitment to reduce Scope 3 emissions, which exceeded 580 million tons of carbon dioxide equivalent last year.

Although European super giants such as BP and France’s TotalEnergies have made plans to build large-scale solar and wind energy sectors, Chevron and ExxonMobil declined calls to follow suit.

Wirth said that Chevron’s “basic business”’s substantial profits in the next few years will help it to fund additional expenditures for clean-up operations.

“We believe that the strategy of combining high-return, low-carbon traditional businesses with faster-growing and profitable new energy businesses will enable us to create long-term value for shareholders.”

Chevron said it is sticking to its goal of reducing the “intensity” of its greenhouse gases—the emissions per barrel produced—which is equivalent to “expected to be 35% less than 2016 levels” by 2028.

An analyst at Royal Bank of Canada Capital Markets stated that Chevron is “leaning towards” the energy transition, but said that “to their surprise, the release did not mention anything related to’net zero’ as some of its peers recently announced. Long-term goals”.

Andrew Logan, senior director of oil and gas at Ceres, who is responsible for coordinating investors’ actions on climate change, said that Chevron’s statement “looks like a step forward, but when what is needed is a huge leap, it’s relatively mild. One step”.

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