Apr 17, 2024 - Energy & Environment

Chevron launches $500 million tech fund

Illustration of the Chevron logo drawn in the sand.

Illustration: Shoshana Gordon/Axios

Chevron's venture capital arm unveiled a new $500 million fund focused on climate-friendly tech.

Why it matters: It's Chevron Technology Ventures' largest fund to date and comes as oil majors are diversifying and under pressure to cut emissions.

The big picture: The Future Energy Fund III "aims to expand investment in the areas of novel low carbon fuels, advanced materials and transforming carbon to higher value products," the announcement Tuesday states.

  • It will also continue CTV's focus on areas like industrial decarbonization, mobility, and the "circular carbon economy."

What's next: CTV president Jim Gable said initial investments from the latest fund will be in the $1 million to $5 million range, targeting Series A through C rounds.

The big picture: Chevron's VC arm launched in 1999 with a "core" fund, and the first "future fund" launched in 2018.

  • They generate returns, but that's not the main focus, Gable said in an interview.
  • The aim is to bolster Chevron's main oil and gas businesses; help its multi-billion dollar diversification in areas like carbon capture and hydrogen; and create future opportunities in emerging tech.
  • This enables Chevron to "see around corners" and "evaluate long horizon bets not currently connected to our business," like fusion, batteries and direct air capture, Chevron said.

Catch up quick: Investments from the first two future funds include the carbon capture startup Carbon Clean, fusion startup Zap, and EV charging player ChargePoint.

The bottom line: "Chevron's not in venture capital just for the sake of being in venture capital. It's in there to improve its base business and drive lower carbon businesses of the future," Gable said.

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