Chevron Corporation

08/06/2020 | News release | Archived content

powering the energy transition

featurepowering the energy transition

On July 30, Chevron announced an agreement with Algonquin Power & Utilities Corporation, a Canada-based renewable energy provider, to codevelop renewable power projects that provide electricity to strategic assets across Chevron's global portfolio.

Under the four-year agreement, Chevron seeks to source more than 500 megawatts (MW) of its existing and future electricity demand from renewable sources. This represents the latest, and largest, advance in Chevron's efforts to integrate renewable power into our business in support of our operations.

together we will generate

>500

megawatts of renewable energy

enough to power

400,000+

U.S. households

'Chevron's renewable power strategy is focused on investing in renewable power solutions that are reliable, scalable, cost-efficient and directly support our core business.'

Allen Satterwhite

President of Chevron Pipeline & Power

'By partnering with our business units across the globe, this agreement will enable us to build renewable power projects on Chevron land to provide energy for Chevron operations, thus helping to cost-competitively reduce the carbon footprint of our operations,' said Allen Satterwhite, president of Chevron Pipeline & Power.

Initial projects are focused on powering Chevron Upstream assets in the U.S. Permian basin (Texas and New Mexico), Argentina, Kazakhstan and Western Australia. Projects that are built on Chevron land and that directly serve Chevron operations will have priority. Initial projects are expected to be in construction within the four-year agreement time frame, beginning in 2021.

addressing climate change

The new framework agreement with Algonquin Power & Utilities Corporation supports Chevron's commitment to address climate change by lowering carbon intensity cost efficiently, increasing renewables in support of our business and investing in the future to target breakthrough technologies. It builds on several previous actions to use renewable power to reduce the carbon intensity of our operations.

chevron's energy transition focus areas are:

lower carbon intensity cost efficiently

performance tied to employee compensation

increase renewables in support of our business

recently competed agreements and new partnerships

invest in the future targeting breakthrough technologies

created Future Energy Fund and developed carbon capture and sequestration technologies in Australia

In 2019, Chevron and its partners began construction on a solar power project that will supply the company's Lost Hills production in Kern County, California, with more than 1.4 billion kilowatt-hours of solar energy over the 20-year potential term of the agreement.

In addition, last year Chevron signed a 12-year power purchase agreement to provide the company's operations in the Permian Basin with approximately 65 MW of renewable electricity sourced from a new West Texas wind farm.

did you know in 2019, chevron established new metrics to reduce net greenhouse gas (GHG) emission intensity from upstream oil and natural gas?

Chevron intends to lower upstream oil net GHG emission intensity by 5-10 percent and upstream natural gas net GHG emission intensity by 2-5 percent from 2016 to 2023.

The GHG emission intensity reduction metrics apply to all upstream Chevron oil and natural gas, whether Chevron has operational control or not. As global demand for energy continues to grow, Chevron is committed to supporting affordable, reliable, ever-cleaner energy. Meaningful action toward this goal is one way we uphold our Chevron Way commitment to protect the environment and be the energy company most admired for its people, partnership and performance.

Published: August 2020