Chevron Corporation's (NYSE:CVX) venture capital arm reportedly launched on Tuesday its third fund to invest in renewable energy technologies with a $500 million commitment.
The move reflects the company's aim to diversify its business amid the pressure to reduce emissions, reported Reuters.
The Future Energy Fund III will focus on innovations in industrial decarbonization, emerging mobility, energy decentralization and, the growing circular carbon economy.
As per the report, the new fund also aims to expand investment across novel low-carbon fuels and advanced materials and transform carbon into higher-value products.
The first Future Energy Fund was launched by Chevron Technology Ventures in 2018, followed by a second in 2021 for a total $400 million commitment.
Earlier this month, Chevron New Energies invested in ION Clean Energy to propel carbon capture technology development.
Investors can gain exposure to the stock via SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE) and IShares U.S. Energy ETF (NYSE:IYE).
Price Action: CVX shares are up 0.13% at $156.08 on the last check Wednesday.
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