Chevron will spend $10bn over the
next seven years boosting its renewable energy production and cutting its
carbon pollution, as pressure mounts
on US oil producers to clean up their
operations.
The clean energy spending pledge is
more than three times the amount
previously committed but on an annual
basis amounts to less than a tenth of its
planned capital spending of about $15bn
a year between now and 2025.
“Chevron intends to be a leader in
advancing a lower-carbon future,” Mike
Wirth, its chief executive, said yesterday. “Our planned actions target sectors
of the economy that are harder to abate
and leverage our capabilities, assets and
customer relationships.”
The US group’s move comes as investors and campaigners ratchet up the
pressure on oil producers to help tackle
global warming. Chevron shareholders
defied management in May and voted
for a resolution demanding the company set targets for so-called scope 3
emissions, or the pollution from the
hydrocarbon products it sells.
Chevron said it would increase production of hydrogen, renewable natural
gas — derived from organic material —
and renewable liquid fuels for use
in transport, and capture or offset
25m tonnes of carbon a year by 2030.
Last year Chevron’s emissions from
operations amounted to 54m tonnes of
carbon dioxide equivalent.
It has announced small-scale low
carbon-focused deals recently, including agreements to supply biofuels to
Delta Air Lines. It has also set up hydrogen-based heavy industry proj ects,
including a train, with Caterpillar.
Yesterday’s announcement did not
include new net zero targets or a fresh
commitment to cut its scope 3 emissions, which exceeded 580m tonnes of
CO2 equivalent last year.
While European supermajors such as
BP and France’s TotalEnergies have set
out plans to build large solar and wind
segments, Chevron and Exxon have
resisted calls to follow suit.
Wirth said bumper profits in the coming years from Chevron’s “base business” would help it finance the extra
spending to clean up operations.
Analysts at RBC Capital Markets said
Chevron was “leaning into” the energy
transition but were “surprised” by the
absence of longer-term net zero targets.