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Chevron Creates New Energies Unit

Copyright © 2021 Energy Intelligence Group

Chevron has established a new business unit to oversee its commercial low-carbon ventures, following in the footsteps of US peer Exxon Mobil. Chevron says its New Energies unit will focus on commercializing opportunities in hydrogen, carbon capture and carbon offsets, as well as support the company’s burgeoning growth in biofuels. CEO Mike Wirth says that dedicating resources into this new organization should “accelerate growth in multiple business lines” that support Chevron’s higher-returns, lower-carbon strategy. The move comes as Chevron faces fresh pressure from investors to adopt a more comprehensive emissions strategy. The majority of shareholders have demanded that the California-based firm set emissions targets that encompass the end-use of its products, not just its operations. Chevron executives have expressed trepidation toward going this route, hoping they can convince investors that their current path is sufficiently robust. It is not yet clear how Chevron will structure its new unit, or whether it might incorporate the company’s low-carbon venture capital funds as well. Thursday’s announcement simply noted that Jeff Gustavson, a Chevron veteran who most recently served as head of its North American E&P business, will head the unit. The company says it plans to discuss the unit in detail during an energy transition investor presentation on Sep. 14.

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