Chevron reinvents itself and plans a mega-investment for its low-carbon hydrogen business

Times change and more and more companies strive to be more environmentally friendlyY Chevron, the oil giant, is no exception. Recently, it was revealed that it plans to spend about $2.5 billion building its hydrogen business over the course of this decade.

According to Austin Knight, vice president of hydrogen in Chevron’s New Energies unit, he remarked that the business will develop green and blue hydrogen. While the former is created with renewable energy, the latter is based on natural gas equipped with technology to capture emissions.

“What you see right now is a shift towards broader energy solutions with hydrogen and moving further towards clean hydrogen,” Knight told a London conference organized by the Financial Times. “We want to be part of that momentum,” she said.

Hydrogen is set to be a key part of global efforts to reduce greenhouse gas emissions. The clean-burning fuel can replace natural gas or coal in heavy industrial processes that are otherwise difficult to decarbonize.

“We should set very clear rules about what low carbon really means, and then let the markets work to achieve real carbon reduction,” the executive stressed.

Chevron’s decision to start migrating to more environmentally friendly energies is smart given the context of high oil prices. With higher earnings and profits, investors not only they earn with their dividendsbut also with the potential for future growth in this renewed industry.

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