Chevron To Invest More Than $10 Bln Until 2028 To Grow Lower Carbon Energy Businesses

(RTTNews) - Chevron Corp. (CVX) Tuesday said it plans to invest more capital to grow lower carbon energy businesses.

The company has set its 2030 growth targets for new energy businesses, and expects to invest more than $10 billion between now and 2028. This is more than triple the company's previous guidance of $3 billion. The latest investment plan include $2 billion to lower the carbon intensity of Chevron's operations.

Under the growth targets, the company aims to grow renewable natural gas production to 40,000 MMBtu per day to supply a network of stations serving heavy duty transport customers. The company would also increase renewable fuels production capacity to 100,000 barrels per day to meet growing customer demand for renewable diesel and sustainable aviation fuel.

Further, Chevron plans to grow hydrogen production to 150,000 tonnes per year to supply industrial, power and heavy duty transport customers; and to increase carbon capture and offsets to 25 million tonnes per year by developing regional hubs in partnership with others.

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 backed its 2028 upstream production greenhouse gas intensity targets, which equate to an expected 35% reduction from 2016 levels.