Strategy: Invest in profitable renewable energy and energy efficiency solutions.
As energy demand continues to grow, the world will need a broad mix of energy resources. 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 Energy
Geothermal makes up the largest portion of our renewable energy assets. We are one of the world's leading producers of geothermal energy, with operations in Indonesia and the Philippines. Our geothermal operations have the capacity to produce approximately 1,280 megawatts, enough to meet the needs of millions of people. We are assessing additional geothermal prospects, with a goal to double our geothermal capacity by 2020.
Advanced Biofuels
We have forged partnerships with research institutions and businesses to evaluate advanced biofuels, a renewable energy source based on nonfood feedstocks. Our focus primarily is on biomass-based fuels that have a chemical composition similar to crude oil and are compatible with existing infrastructure and engine technology. Catchlight Energy, our 50-50 joint venture with Weyerhaeuser Company, a forest products company, is focused on advanced biofuels made from forest-based biomass.
Solar Energy
We are testing the potential of solar energy to determine which technologies can best be applied to our existing businesses.
A project at our molybdenum mine in Questa, New Mexico, is enabling us to evaluate emerging solar technology while demonstrating the beneficial reuse of industrial land. The site is home to one of the largest concentrating photovoltaic (CPV) solar installations in the United States. The demonstration project will help us determine the operational benefits of CPV technology and whether it can be applied to other sites. The electricity generated by the project is sold to a local power cooperative.
Another solar demonstration project is being tested to produce crude oil from our Coalinga Field in California's San Joaquin Valley. The project uses more than 7,600 mirrors to focus the sun's energy onto a solar boiler. The steam it generates is injected into oil reservoirs to increase production.
Our former refinery in Bakersfield, California, is the site of Project Brightfield, a test of the performance of seven new thin-film technologies and a new crystalline-silicon photovoltaic technology. Electricity generated by the project is used in our crude oil production operations at the Kern River Field and also supplied to the local power grid.
Chevron Energy Solutions
Since its founding in 2000, Chevron Energy Solutions (CES) has worked with governments, educational institutions and businesses, including Chevron, to help them become more energy efficient and find ways to generate their own renewable power. CES has developed more than 1,000 projects in the United States that are saving customers in aggregate more than $1 billion and reducing greenhouse gases by more than 3 million metric tons.
CES is guiding the work of the new Chevron Center for Sustainable Energy Efficiency in Qatar, which was established during the year to evaluate solar and energy efficiency technologies in desert environments. The center will test the performance of commercially available and near-to-market technologies in solar power, solar air conditioning, solar desalination and energy-efficient lighting that can work well in the region's desert climate.
During the year, CES completed a first-of-its-kind project that could become a model for power reliability. The company designed and built one of the country's largest microgrids for the Santa Rita Jail in Alameda County, California. The microgrid incorporates simplified controls and large-scale renewable and clean energy generation. A large onsite battery is charged during off-peak times and discharged during peak times. The system is capable of responding to grid outages in milliseconds for uninterrupted power.
Posted: April 2013