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Chevron plans $2.5B investments in hydrogen, executive says

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Chevron (NYSE:CVX) plans to spend ~$2.5B building up its hydrogen business this decade, VP of hydrogen at the company’s New Energies unit said Thursday, according to Bloomberg.

“What you see right now is a shift to broader energy solutions with hydrogen and moving more into clean hydrogen. We want to be part of that ramp-up,” Austin Knight reportedly said at a Financial Times conference.

Chevron (CVX) said last fall it was allocating $10B toward developing renewable fuels, hydrogen and carbon capture through 2028, but it did not specify how the money would be split among various technologies.

Hydrogen made from natural gas with carbon capture – so-called blue hydrogen – can be built at larger scale today than the renewable power-based alternative – or green hydrogen – Knight said.

Chevron (CVX) is “already valued by the market at a premium to its peers, which places a ceiling on the upside for its shares,” The Value Pendulum writes in an analysis posted recently on Seeking Alpha.