Chevron Plans Further Growth Into Energy Transition – Renewable Fuels, Hydrogen and Carbon Capture

While long term goals of lowering greenhouse gas emissions and employing sustainable energy sources have gained momentum across all industries, Chevron Corp., through its New Energies division, has stated it has shorter term goals as well – it says its planned growth in renewable fuels, hydrogen and carbon capture is expected to enable about 30 million tonnes of annual CO2 equivalent emission reductions by 2028. Technology adoption, policy and consumer behavior will drive energy choices, says a top sustainability executive, as companies focus on carbon management along the path to net zero. All three factor into whether one form of energy or another is sought to supply demand created by income and population growth, according to Bruce Niemeyer, vice president of strategy and sustainability for Chevron Corp. “Keeping supply and demand balanced through the transition is important so the transition works for all and doesn’t become a negative event for those most vulnerable,” Niemeyer said earlier this month during UT Energy Week. He added, “We’re going to need many forms of energy, which means we need to work on reducing the carbon intensity of all of them.” Chevron is among the many companies working to lower its emissions amid a heightened focus on global warming and future energy supplies. Like the smartphone, technologies with features that meet consumers’ needs or low-cost technologies will gain market share, he said, noting consumer preference is a strong factor. Take, for example, the automotive sector. EVs are expected to play a key role in the energy transition, giving their lower emissions, compared to vehicles with internal combustion engines. However, “last year, our best estimate is there were 6.6 million electric vehicles sold. At the same time, there were 35 million SUVs. It doesn’t mean it will be that way forever, but consumer preferences are strongly important to how energy is demanded by the world and then the choices of whether it’s provided from one form or another.” Most consumers do not appear willing to give up their gasoline-fueled vehicles, however, falling electric vehicle (EV) prices with improved battery technology are contributing to an uptick in sales. Citing data from Wards Intelligence, the U.S. Energy Information Administration said in February that hybrid, plug-in hybrid, and EVs collectively accounted for 11% of light-duty vehicle sales in the United States in fourth-quarter 2021. Several countries and automakers have set ambitions to increase EV sales, including in the U.S. where there is a target of 50% EV sales share in 2030.

Like many of its peers, Chevron is advancing technologies to reduce the carbon intensity of its operations. Its targets include a 35% reduction in upstream CO2 intensity by 2028, a more than 5% reduction in its portfolio carbon intensity by 2028 and net-zero Scope 1 and Scope 2 emissions by 2050. Chevron’s 2030 new energies targets also include producing 150 ktpa in hydrogen, which Niemeyer said could be used to decarbonize the heavy-duty transportation sector; and 25 MMtpa in carbon capture and offsets. The company has formed several partnerships, including with Hydrogenious, a developer of liquid organic hydrogen carrier technology. Speaking during Chevron’s analyst day in March, Chief Technology Officer Eimear Bonner said the technology could deliver affordable and efficient storage and transport of hydrogen. The company has said its planned growth in renewable fuels, hydrogen and carbon capture to these shorter term goals is expected to enable CO2 equivalent emission reductions by 2028.

View the full article here: Chevron Exec Shares Insight on Energy Transition, Oil Major’s Strategy | Hart Energy.

NextEra Announces Record Renewables, Pushing Major ‘Green’ Hydrogen Project

NextEra Energy Inc.’s CEO, Jim Robo, has pushed Congress to extend clean energy tax credits as the company announced record renewables contracts and a major hydrogen project yesterday. Robo said odds are “reasonably high” of an extension if a consensus can be reached on what would be in the reconciliation bill. There is wider support in Congress to expand clean energy tax credits compared to the proposed $150 billion Clean Electricity Performance Program or carbon pricing. Other proposals have included a broad clean energy tax overhaul that some large energy companies say they support. “If something happens there, we feel good about the fact that there will be a long-term extension of the credits,” Robo said, adding that he foresees tax policy support for hydrogen and energy storage investments. “It would be very constructive for us.” As one of the world’s largest renewable energy developers, NextEra has a lot to gain if the Biden administration is successful in financially encouraging wind, solar and other technologies to cut U.S. power sector emissions in half by 2030. President Biden has set the goal of decarbonizing the grid by 2035. We are increasingly thinking about ourselves as the company that’s going to lead not only the clean energy transformation of the electric grid but really the clean energy transformation of the U.S. economy and the decarbonization of the U.S. economy,” he said. The way Robo sees it, a low-emissions grid is critical to decarbonizing the transportation and industrial sectors. The falling costs of renewable resources combined with utility, corporate and state goals aimed at cutting emissions are driving large-scale projects nationwide. NextEra’s renewable energy unit signed a record 2,160 megawatts of solar, wind and storage projects during the third quarter, the company said during a conference call with Wall Street analysts. This includes 1,240 MW of new wind projects, the largest amount signed during a three-month period in the company’s history, said Rebecca Kujawa, NextEra’s chief financial officer. Even with the future of tax credits in play, NextEra now has more than 18 gigawatts of signed contracts in its development queue, including more than 7,600 MW worth of projects post-2022.

Electric companies nationwide are targeting hydrogen as a new option for emission-free electricity. Kujawa yesterday said NextEra has inked a deal to build a 500 MW wind project designed to power a green hydrogen fuel cell company. “Green” hydrogen is made from water and renewable electricity. That company wants to build a hydrogen electrolyzer nearby and use the wind power to meet up to 100 percent of its load requirements, Kujawa said. The hydrogen produced would be sold to commercial and industrial end-users to replace their current electricity that comes from other forms of hydrogen and fossil fuels, she said. The goal is to further accelerate the decarbonization of the industrial and transportation sectors, she said. Electric companies are eying expanded used of hydrogen during the later part of the 2020s and the next decade, Kujawa said, because it’s likely that long-duration storage will be developed by then. The transportation sector may be able to take advantage of green hydrogen earlier, however, she said. “The big question mark would be whether or not there’s a hydrogen production tax credit ultimately, in the final reconciliation bill,” she said. She said the $3-a-kilogram PTC “really closes the gap” between natural gas-based hydrogen and green hydrogen. That would create more opportunities to replace gas-based hydrogen with green hydrogen and expand renewable energy options. “We’ll know a lot more in January once we see the final package, if there is one,” she said.

E&E News | Article | NextEra announces record renewables, major ‘green’ hydrogen project (