Strategy: Invest in profitable renewable energy and energy efficiency solutions.
With energy demand continuing to grow, the world will need all forms of energy. We are involved in a number of renewable energy projects to identify those that can be developed profitably on a commercial scale without government subsidies.
Geothermal
Our most significant renewable energy source is our portfolio of geothermal assets. We are the largest geothermal producer in the world, with holdings in Indonesia and the Philippines. We recently added two new geothermal prospects—Kalinga in the Philippines and Suoh-Sekincau in Indonesia. These prospects have the potential to support our strategy to double geothermal capacity by 2020. Our current geothermal operations generate approximately 1,300 megawatts of energy per year, enough to meet the needs of approximately 16 million people in these two countries.
Advanced Biofuels
We are working with research and business partners to further our knowledge of advanced biofuels, a renewable energy source based on nonfood feedstocks. We are focused primarily on "green crude"—biomass-based fuels that have a chemical composition similar to crude oil and are compatible with existing infrastructure and engine technology. We are leveraging our 50-50 joint venture with Weyerhaeuser Company, a premier forest products business, to explore ways we can commercialize advanced biofuels made from sustainable forest-based biomass.
Solar Energy
We are testing a number of solar technologies to determine which can best be applied to our existing businesses and used by our subsidiary Chevron Energy Solutions, which builds solar power plants and installs solar arrays for public institutions and commercial customers. At a former refinery site in Bakersfield, California, we launched Project Brightfield, a demonstration of seven emerging solar energy technologies. Electricity generated by the project will be used in our crude oil production operations at the Kern River Field and supplied to the local power grid.
At our Coalinga Field in California, we are testing the potential of using solar thermal technology to produce steam that can be injected into reservoirs to increase crude oil production. It is the largest project of its kind in the world and uses more than 7,600 mirrors to focus the sun's energy onto a solar boiler.
During the year, we announced the startup of one of the country's largest concentrating photovoltaic solar facilities at our molybdenum mine in Questa, New Mexico. The project not only will help evaluate emerging solar technology, but also will demonstrate beneficial reuse of industrial land.
Energy Efficiency Solutions
Chevron Energy Solutions (CES) has spent more than a decade helping government, education and businesses, including Chevron, become more energy efficient and find ways to use renewable power. Since its founding in 2000, CES has developed hundreds of projects that are saving customers in aggregate more than $1 billion and reducing greenhouse gases by more than 3 million metric tons. In 2011, we completed a solar and energy efficiency project for the East Side Union High School District in San Jose, California. The largest project of its kind in the United States, it includes a 7.1-megawatt solar system installed across 13 sites. It is expected to generate $43 million in savings for the district.
In 2011, three of our facilities received certification from the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED). LEED certification is a globally recognized distinction based on rigid standards for sustainability and energy efficiency in building design. Our headquarters in San Ramon, California, and our downtown Houston, Texas, facility were both certified LEED Gold. Another Houston facility was certified LEED Silver.
During the year, we opened the Chevron Center for Sustainable Energy Efficiency in Qatar to help evaluate solar and energy efficiency technologies in desert environments. Results will help engineers and architects apply clean-energy technologies.
Posted: April 2012