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Chevron (CVX) Invests in Google-Backed Nuclear Fusion Startup

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Chevron Corporation (CVX - Free Report) was recently part of a $250-million funding round for a nuclear fusion startup named TAE Technologies. The startup, which is said to have an unconventional strategy with a "non-radioactive approach", has raised $1.2 billion in aggregate.

The American oil and gas giant is one of the big names to have invested in TAE Technologies, tech biggie Google and Japan’s Sumitomo Corporation, among others. The startup mentioned that the $250 million raised would fund the sixth generation of its fusion research reactor in California.

Nuclear fusion is the process which produces energy when two smaller atoms join together to form a larger one that has the potential of generating almost unlimited emission-free energy without the equivalent harmful, long-lasting radioactive waste.

CVX’s Technology Ventures unit invested in TAE. Also, the unit previously invested in a Seattle-based fusion startup – Zap Energy. Several oil and gas companies have made similar investments to diversify their energy portfolio and cut down their carbon emissions.

Jim Gable, the president of Chevron Technology Ventures and the vice-president of innovation, stated that TAE and fusion technology at large promise to be a scalable source of no-carbon energy generation and a crucial enabler of grid stability as renewables occupy a greater portion of the energy mix going forward.

TAE Technologies was founded in 1998 to develop commercial fusion power with the cleanest environmental profile. The company’s pioneering work represents the fastest, most practical and economically competitive solution to bring abundant clean energy to the grid.

Chevron is one of the largest publicly traded oil and gas companies in the world with operations spanning worldwide. The only energy component of the Dow Jones Industrial Average, CVX is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing.

Chevron currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks from the energy space that warrant a look include PBF Energy (PBF - Free Report) , Shell (SHEL - Free Report) and BP (BP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for PBF Energy’s 2022 earnings stands at $10.47 per share, up about 518.8% from the year-ago loss of $2.50.

PBF beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 61.4%.

The Zacks Consensus Estimate for Shell’s 2022 earnings is pegged at $11.01 per share, up about 122.4% from the year-ago earnings of $4.95.

The Zacks Consensus Estimate for SHEL’s 2022 earnings has been revised upward by about 18.6% over the past 60 days from $9.28 to $11.01 per share.

The Zacks Consensus Estimate for BP’s 2022 earnings is pegged at $7.84 per share, up 105.2% from the year-ago earnings of $3.82.

The Zacks Consensus Estimate for BP’s 2022 earnings has been revised upward over the past 60 days from $6.68 per share to $7.84.

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