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Chevron (CVX) Joins Enterprise on CCUS Project to Cut Emission

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Chevron Corporation’s (CVX - Free Report) Chevron New Energies division along with the subsidiary of the leading midstream energy player in North America, Enterprise Products Partners L.P. (EPD - Free Report) , has established a framework to explore and assess carbon dioxide (CO2) capture, utilization, and storage (CCUS) prospects.

The agreement calls for them to research and analyze the commercial potential in the United States' Midcontinent and Gulf Coast regions with the initial phase of the research lasting roughly six months.

Chevron and Enterprise had previously collaborated on business opportunities and possess complementary skills to pursue CCUS successfully. Banking on the industry experience that the two companies can bring in to contribute to this initiative, their collaborative effort will have the potential to boost their ongoing drive to build lower-carbon operations on a commercial scale.

Enterprise's substantial midstream pipeline and storage network will be combined with Chevron's subsurface technology to gather, aggregate, transport and sequester carbon dioxide in support of the transforming energy landscape.

Carbon capture, utilization and storage or CCUS is considered essential to making progress toward the Paris Agreement's worldwide net-zero emission goal. CCUS can be instrumental in achieving net-zero emissions on the following four counts. It can cut emissions from the current energy properties, provide a solution to those sectors that find it difficult to control emission, act as a platform for churning out green hydrogen and eliminating carbon from the environment to curb emissions that cannot be slashed at once.

As the focus on energy transition intensifies, San Ramon, CA-based Chevron made a Series C investment in Blue Planet Systems Corporation in the beginning of this year. In addition, it signed a letter of intent with Blue Planet regarding cooperation on pilot projects and other commercial opportunities in prime geographic locations with the purpose of jointly developing lower-carbon prospects. This investment was made through its Future Energy Fund, which focuses on startups with lower-carbon technologies that can scale commercially.

Zacks Rank & Other Key Picks

Chevron currently has a Zacks Rank #2 (Buy). Other top-ranked players in the energy space include Devon Energy Corporation (DVN - Free Report) and Continental Resources, Inc. (CLR - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Devon Energy is likely to see earnings growth of 9.32% in 2021.

Continental is expected to witness earnings growth of 435.9% in 2021.