Chevron Corporation announced — during its Energy Transition Spotlight — plans to invest more capital to grow lower carbon energy businesses.
Chevron expects to invest more than $10 billion between now and 2028, including $2 billion to lower the carbon intensity of Chevron’s operations. This is more than triple the company’s previous guidance of $3 billion.
“Chevron intends to be a leader in advancing a lower carbon future,” said Michael Wirth, Chevron’s chairman and CEO. “Our planned actions target sectors of the economy that are harder to abate and leverage our capabilities, assets, and customer relationships.”
Chevron growth targets for 2030
# Grow renewable natural gas production to 40,000 MMBtu per day to supply a network of stations serving heavy duty transport customers
# Increase renewable fuels production capacity to 100,000 barrels per day to meet growing customer demand for renewable diesel and sustainable aviation fuel
# Grow hydrogen production to 150,000 tons per year to supply industrial, power and heavy duty transport customers
# Increase carbon capture and offsets to 25 million tons per year by developing regional hubs in partnership with others
“Renewable fuels, hydrogen and carbon capture target customers such as airlines, transport companies and industrial producers,” said Jeff Gustavson, president of Chevron New Energies. “These sectors of the economy are not easily electrified, and customers are seeking lower carbon fuels and other solutions to reduce carbon emissions.”
At a Brent oil price average of $60 per barrel, the company reaffirmed its expectation to earn double-digit return on capital employed by 2025 and generate $25 billion of cash flow, above its dividend and capital spending, over the next five years.
The company also reaffirmed its 2028 upstream production greenhouse gas intensity targets, which equate to an expected 35 percent reduction from 2016 levels.