Chevron's focus on developing and deploying renewable and alternative energy is part of a longer-term strategy to invest profitably in promising low- or zero-carbon technologies. To meet the growing energy demands of the global economy, all sources of energy — including conventional and nonconventional fossil fuels, renewable energy, and increased efficiency and conservation — will be needed. One of the challenges of meeting this demand through the increased use of renewable sources is ensuring availability on a very large scale and at an affordable price.

Geothermal Energy

Today, Chevron is the largest producer of geothermal energy in the world. Our operations in Indonesia and the Philippines have a combined installed capacity of 1,273 megawatts, including our most recent addition to the geothermal fleet: the 110-megawatt Darajat Unit III in Garut, West Java, Indonesia. This capacity provides enough renewable energy to meet the needs of 16 million people in these countries.

Technology and Innovation

Our Chevron Technology Ventures (CTV) subsidiary manages innovation, commercialization and integration of emerging technologies, including renewable energy applications. Renewable technologies that CTV is investigating include advanced biofuels, advanced solar applications, engineered geothermal energy, ocean energy and bioenergy.

Chevron Energy Solutions Co. (CES) applies proven energy efficiency and renewable power technologies — such as infrastructure systems, energy controls, solar power, biomass and fuel cells — to meet the facility needs of institutional customers. CES also collaborates with other Chevron groups to support internal energy efficiency, reliability and renewable energy projects.

In 2008, CES completed an innovative, energy-efficient central utility plant to provide reliable steam, chilled water and power for the U.S. government's National Interagency Biodefense Campus at Fort Detrick in Frederick, Maryland.

Solar Energy

Today's advanced solar technologies present significant opportunities to harness the sun's rays to generate large amounts of energy. Whether generating electricity using photovoltaic cells or using the heat to create stored thermal energy, we are applying these state-of-the-art solar technologies at our own operations and on behalf of the clients we serve through CES.

CES completed a 3.4-megawatt solar photovoltaic system for the Milpitas Unified School District in California. Solar arrays at 14 sites are expected to generate 75 percent of the annual power needs for the district and decrease carbon emissions by more than 23,000 metric tons. The project is designed to reduce energy costs by 22 percent, resulting in $12 million in savings for the school district over the life of the solar power system.

Chevron became a sponsor in 2008 of the Lighting a Billion Lives Campaign, organized by The Energy and Resources Institute in India. The project provides solar lanterns to households without electricity that usually use kerosene or paraffin torches. The institute is seeking to replace these inefficient, high-polluting light sources with a safer, sustainable and clean alternative. Our support enabled the installation of a charging station in one village and provided 50 lanterns — one for each family in the village

Emerging Fuels

At Chevron, we believe that long-term solutions to meet demand for transportation fuels must involve a range of innovative alternatives that supplement petroleum products, alternatives that can be produced at commercial scale and affordably. We are investing in targeted research and development projects to discover new sources of untapped energy and make the best use of the energy sources we currently have.

Biofuels

CTV has established strategic alliances to research and develop new feedstocks and new process technologies for converting nonfood biomass into transportation fuels at commercial scale. Our research collaborations include industrial partners the U.S. Department of Energy's National Renewable Energy Laboratory, the Georgia Institute of Technology, Texas A&M University, the University of California at Davis, and the Colorado Center for Biorefining and Biofuels.

Formed in 2008, Catchlight Energy LLC, our joint venture with Weyerhaeuser Co., is currently focused on discovering, developing or acquiring technology for converting forestry-based cellulose into transportation fuels. Drawing on Weyerhaeuser's expertise in growing, harvesting and processing large amounts of biomass on its forestlands and Chevron's expertise in processing, marketing and distributing liquid fuels, Catchlight is evaluating various technologies, types of vegetation and growth management methods to be used for the commercialscale production of sustainable cellulosic biofuel. Catchlight is pursuing the concept of "intercropping" — growing cellulosic biomass in the spaces between trees on Weyerhaeuser's managed forestlands in the United States.

Through CTV, we also are assessing a variety of biomass sources to identify potential feedstocks that could be available on a commercial scale. We are investigating various types of nonfood biomass and are evaluating mechanisms for acquiring it in sufficiently large quantities. At the same time, we are working with biomass experts to help avoid any long-term adverse impacts from production and to incorporate the three major components of sustainability — environmental protection, economic feasibility and the minimization of social impacts — at the front end of any new biomass initiatives.

Our research partnerships with universities continue to be an important part of our alternative energy activities. In 2008, a number of projects moved from bench-scale research and development activities into the planning phase for pilot-scale testing of innovative biofuel production technologies.

Hydrogen

Chevron owns and operates five U.S. demonstration hydrogen fueling stations as part of a multiyear study with the U.S. Department of Energy (DOE). When initiating the DOE's hydrogen program in 2004, our objectives were twofold:

  • To demonstrate safe, practical hydrogen technologies in real-world settings.
  • To identify and overcome key technical challenges.

This five-year demonstration program, scheduled to conclude in December 2009, accomplished these objectives. We constructed and operated the five stations successfully and safely, using a variety of advanced technologies to produce hydrogen from different sources (natural gas and water). The stations serviced several vehicle types, including fuel cell vehicles, hybrid electric fuel cell buses and internal combustion engine buses.

For hydrogen to play a larger role in meeting future world energy demand, some technical hurdles will need to be overcome. First, the energy density of hydrogen is much smaller than that of gasoline, so delivering the same amount of energy would require hydrogen storage and fueling facilities about two to four times larger than comparable gasoline stations. Also, the cost of hydrogen is still much higher than that of gasoline, and while some of the cost differential may decrease at larger scales, it is not expected to become cost competitive for many years. Through demonstration projects, Chevron and DOE have a much better understanding today of hydrogen's promise and what it will take for hydrogen to become a widespread fuel for the future.

Updated: May 2009

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