renewable power and energy storage
By sourcing more electricity from renewable sources, we are switching to a lower carbon fuel source and working toward optimizing between purchased and self-generated power. These types of efforts can reduce the direct and indirect emissions associated with our operations and lower the overall life cycle carbon intensity of our products.
Energy storage is an important component to help address intermittency with renewable generation. By combining energy storage solutions with lower carbon fuel sources, we can lower the overall carbon intensity of our products.
Some examples of our partnerships and investments include:
Chevron is partnering with Algonquin Power & Utilities Corporation to codevelop renewable-power projects that provide electricity to strategic assets across our global portfolio. This builds upon our prior use of renewable power in operations in Texas and California. Under the four-year agreement, we will source 500 megawatts of existing and future electricity demand from renewables, and we expect to make up to $250 million in investments by 2025. We are prioritizing opportunities in the U.S. Permian Basin (Texas and New Mexico), Argentina, Kazakhstan, and Western Australia. Projects will be jointly owned and codeveloped by both parties. Algonquin will lead the design, development, and construction of the renewable-power assets. We will purchase electricity through power purchase agreements. This represents the latest, and largest, advance in our efforts to integrate renewable power in support of our operations.
Chevron is invested in RayGen, a startup developing technology that has the potential to impact long-duration energy storage and grid stability.
Spear Power Systems
Chevron has invested in Spear Power Systems, who designs and manufactures energy storage system solutions for marine, aircraft, and industrial applications.
Chevron and our partner SunPower completed construction in 2020 on a solar power project that supplies our Lost Hills production facilities in California with solar energy. We expect that the project will provide more than 1.4 billion kilowatt-hours of solar energy over the potential 20-year term of the agreement.
Chevron’s investments in battery technology include Natron Energy, which is developing a new generation of sodium-ion battery products that offer potential performance advantages over current technologies.