Chevron set to invest $10b in new energy
By Kingsley Odii
Chevron, one of the world’s largest oil companies, has announced plans to invest $10 billion in new energy technology over the next decade. This move demonstrates the company’s recognition of the growing importance of renewable energy and the need to diversify its portfolio beyond fossil fuels.
The money will be used to fund research and development into areas such as solar, wind, energy storage, and advanced fuel cells. The investments will focus on renewable energy and low-carbon technologies, the development of new fuels and energy efficiency solutions, as well as carbon capture and storage.
President, Chevron New Energies at Chevron, Jeff Gustavson, while speaking on the future of energy and Chevron’s action to accelerate lower carbon solution at the Yahoo Finance studio said: “From oxygen and renewable fuels to CCUS and carbon offsets, we need all solutions in order to meet the growing demand for reliable, affordable and ever cleaner energy.”
He added that, there are three key elements to the energy system. First is that, energy needs to be reliable to support energy security. Second, energy needs to be affordable to support economic prosperity and third, energy needs to be ever cleaner.
“We are focused on all of these aspects in both our traditional business and now, these new businesses.”
The company also stated that it plans to reduce its emissions by 25 percent by 2035 and by 50 percent by 2050. The announcement came as part of a larger effort by the oil giant to transition to a more sustainable energy future.
Through this, Chevron aims to achieve a significant reduction in its carbon footprint by investing in clean energy solutions. Chevron’s commitment to investing in new energy aligns with global efforts to combat climate.
Commenting on the development, Ritesh Parakkal, managing director at Harvard Business School, Iker II said that “this is a great initiative by Chevron to accelerate lower carbon solutions and bring about energy security, economic prosperity and better environment.
Also speaking on the new introduction by Chevron, Jeff Krimnel, Chief Strategist Officer at Pinnacle said: the initiative by Chevron is a welcome development and it will bear more fruits on hard to abate emission industries, and on economies that are difficult or impossible to electrify.
This investment is an important step for Chevron as it acknowledges the increasing demand for cleaner energy alternatives. It also positions the company to stay competitive in a rapidly changing energy landscape, which is shifting towards renewable sources and away from traditional fossil fuels.
With this $10 billion investment, Chevron is signaling a strategic shift in its business model towards sustainability and renewable energy. It highlights the company’s recognition of the urgent need to address climate change and reduce greenhouse gas emissions.
Chevron’s decision to invest in new energy is a positive development for the energy industry and the planet as a whole. It demonstrates the potential for even the biggest oil companies to adapt and contribute to a more sustainable energy future.
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