Chevron Is Betting $2.5 Billon on Hydrogen. Will It Pay Off for Investors?

Chevron (NYSE: CVX) unveiled its intention to accelerate its lower carbon ambitions last fall. The oil giant said it would spend $10 billion through 2028 on that strategy, more than triple its previous plan. The company expected to spread that money around by investing it in renewable natural gas, renewable fuels like renewable diesel and sustainable aviation fuel, hydrogen, and carbon capture.

The company recently provided some more details about its hydrogen investment strategy, stating that it plans to invest $2.5 billion to develop green and blue hydrogen production facilities. Here's why it's starting to bet big on hydrogen.

Hydrogen is a versatile and clean-burning fuel many believe could be the key to addressing some of the obstacles the global economy is facing in its race to decarbonize. Green hydrogen is an emission-free fuel produced using renewable energy that powers an electrolyzer to turn water into hydrogen and oxygen. Meanwhile, blue hydrogen is made from natural gas and can be emissions-free with carbon capture technology.

Source Fool.com