US energy giant and LNG player Chevron said it plans to spend $10 billion on renewable fuels, hydrogen, and carbon capture, as part of a move to grow its low-carbon energy business.
This is more than triple the company’s previous guidance of $3 billion.
Chevron revealed the new plans during its 2021 energy transition spotlight on Tuesday.
Under the new strategy, Chevron is looking to increase production of renewable natural gas, hydrogen, boost carbon capture, but also work further on LNG cargo offsets.
To achieve this, the company expects to invest more than $10 billion between now and 2028, including $2 billion to lower the carbon intensity of Chevron’s operations.
Chevron said it aims to grow renewable natural gas production to 40,000 MMBtu per day to supply a network of stations serving heavy-duty transport customers.
Also, Chevron is looking to increase renewable fuels production capacity to 100,000 barrels per day and grow hydrogen production to 150,000 tonnes per year.
Chevron’s plans also include boosting carbon capture and offsets to 25 million tonnes per year by developing regional hubs in partnership with others.
The company already has a giant CCS system at its 15.6 mtpa Gorgon LNG facility on Barrow Island in Australia.
As per LNG offsets, Chevron has earlier this year signed a six-year LNG supply deal with Singapore’s Pavilion Energy. Each LNG cargo delivered under this deal will be accompanied by a statement of its GHG emissions.
“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,” he said.