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Chevron (CVX) Invests in Geothermal Company for Energy Transition

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Chevron Corporation (CVX - Free Report) announced that it invested in Sweden-based Baseload Capital AB as part of its plans to become more energy-efficient and advance toward a carbon-neutral future.

Baseload Capital is a private equity company, which focuses on the development and operation of low-temperature geothermal and heat power assets. It operates globally with the purpose of providing heat power operators the resources necessary to develop and operate renewable heat power plants. Notably, heat power is an affordable form of renewable energy and can be utilized from either geothermal resources or waste heat.

Chevron Technology Ventures (“CTV”), a corporate venture capital arm of Chevron, seeks externally developed technologies and advanced business solutions to enhance Chevron’s strategies to manufacture and deliver affordable, more reliable and ever-cleaner energy. Notably, the Baseload Capital investment is funded by CTV’s Core Venture fund, which invests in technologies with abilities to add efficiencies to Chevron’s major activities in operational enhancement, digitalization and lower-carbon operations.

Energy companies are under immense pressure to find new lines of business as investors and activists brought immense pressure to tackle climate change. The entire energy sector is gearing up for a tremendous change to renewable energy resources for powering all industrial fields as temperatures are rising worldwide due to greenhouse gases. As a result, Chevron decided to invest in geothermal power to prevent climatic hazards.

Per Baseload Capital, both companies signed a letter of intent to explore a potential pilot project in California, which is intended to boost lower-carbon energy production. With the development of heat power plants globally, Baseload Capital and Chevron will seek commercial heat power opportunities in regions where Chevron operates.

On its part, Chevron’s investment in geothermal power demonstrates the company’s continuous efforts to achieve the progression toward a lower-carbon future. Notably, the alliance is expected to expand geothermal resources in the United States and internationally.

Company Profile

Headquartered in San Ramon, CA, Chevron is one of the largest publicly-traded oil and gas companies. It is fully integrated, with operations all over the world.

Zacks Rank & Stocks to Consider

Chevron currently carries a Zack Rank #3 (Hold).

Some better-ranked players in the energy space are Eni SPA (E - Free Report) and Royal Dutch Shell Plc , currently sporting a Zacks Rank #1 (Strong Buy), and ConocoPhillips (COP - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Eni’s earnings for 2021 are expected to increase 7.3% year over year.

Shell’s earnings for 2021 are expected to rise 19.4% year over year.

ConocoPhillips’s earnings for 2021 are expected to rise 14.8% year over year.

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