US oil major Chevron has outlined a new emissions reductions strategy to cut 30mn t CO₂ from its operations by 2028 using renewable fuels, hydrogen and CCUS technologies.

The firm’s strategy involves reducing the carbon intensity of its existing operations whilst simultaneously establishing a ‘new energies’ division that will develop technologies in those three sectors. This new division will initially focus on the US west coast and selected Asian markets.

Chevron will commit $10bn towards achieving its target between now and 2028, up from $3bn committed previously.

“Chevron intends to be a leader in advancing a lower carbon future,” said Michael Wirth, Chevron’s CEO.

“Our planned actions target sectors of the economy that are harder to abate and leverage our capabilities, assets and customer relationships.”

These sectors of the economy are specifically manufacturing, aviation and heavy-duty transportation.

Hydrogen and CCUS

Chevron will grow low carbon hydrogen production to 150,000 t/yr on an equity basis by 2030 to supply industrial, power and heavy-duty transport customers with a mixture of the blue and green forms of the fuel. Currently the firm produces 1mn t/yr of grey hydrogen.

“We’d like to come in with partnerships, identify storage locations, and then build out CO₂ transportation and distribution infrastructure,” Gustavson, Chevron New Energies

Chevron has already fostered alliances with Toyota, Cummins and Caterpillar to ensure demand for this growth in production.

The firm will develop a number of green hydrogen projects in the US and will participate in the Advanced Clean Energy Project (Aces), in which it has an equity stake. The project—a joint venture with Magnum and Mitsubishi—aims to develop a supply and distribution network for hydrogen in western US.

Chevron also plans to develop blue hydrogen hubs centered around areas of industrial production, aiming to develop ‘clusters’ where it can co-ordinate the capture and storage of CO₂ from other emitters.

“We’d like to come in with partnerships, identify storage locations, and then build out CO₂ transportation and distribution infrastructure,” said Jeff Gustavson, president of Chevron New Energies.

The firm will also look to decarbonise its existing projects using carbon capture, utilisation and storage (CCUS) technologies, including capturing and storing 4mn t/yr CO₂ from the Gorgon gas project in Australia.

In pursuing this dual hydrogen and CCUS strategy, Chevron hopes to store 25mn t/yr CO₂ by 2030 in total.

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Author: Tom Young