The huge hydrogen investment plan of the oil and gas giant Chevron Corporation (NYSE: CVX) was just made public. The actions taken by Chevron may have worldwide repercussions for the oil sector.
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By 2028, Chevron Corporation (CVX) plans to invest $10 billion in green energy, more than double its previous budget. Spending has probably increased as macroeconomic and geopolitical concerns have grown.
Investments in renewable natural gas, biodiesel, carbon capture, and plant-based aviation fuel are all included in the program’s several components.
Although the amount of hydrogen used in this effort has not previously been disclosed, it currently stands at $2.5 billion. First, Chevron Corporation (CVX) will invest money in building facilities for electrolysis-based hydrogen generation.
For businesses like Bloom Energy Corp. (NYSE: BE), a creator and seller of industrial electrolyzers, this is a highly encouraging indication.
In addition, Chevron Corporation (CVX) plans to make hydrogen from natural gas using tested and feasible commercial technology. To make this production ecologically friendly, carbon capture will be used.
Chevron Corporation (CVX) has already started putting the plan into action, including buying a share in the American initiative for the production, storage, and transportation of hydrogen. Additionally, CVX has invested in Raven SR, which is preparing to open the first plant for the synthesis of hydrogen from waste.
Hydrogen has the benefit of being adaptable, having the largest chemical energy storage density, and emitting water vapor after burning, which is ideally pure. Hydrogen storage was a challenge for a while, but thanks to composite cylinders and more sophisticated compressors, this obstacle is now over.
Billion-dollar investments in hydrogen are also being made by other titans like BP and NextEra Energy. As a result, hydrogen energy has already started to take over the global energy system of the future. It is no longer necessary to consider whether hydrogen has a future.
The share price of Chevron Corporation (CVX) is down 7.61 percent week over week and 7.35 percent month over month. Its price has increased by 45.77% in the last 12 months and 31.73% so far this year.