Please ensure Javascript is enabled for purposes of website accessibility

Chevron, Schlumberger, and Microsoft Join for Carbon-Capture Effort

By Howard Smith - Mar 4, 2021 at 2:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The companies are looking to collaborate on a biomass plant in California.

Energy giant Chevron (CVX 1.61%) is joining with oil services company Schlumberger (SLB 3.01%) and Microsoft (MSFT -3.17%) to work with green power company Clean Energy Systems for a new bioenergy project in California.

The facility will be designed for carbon-negative energy production. The companies say it will "convert agricultural waste biomass, such as almond trees, into a renewable synthesis gas that will be mixed with oxygen in a combustor to generate electricity." More than 99% of carbon from the process will be captured and permanently sequestered by injecting carbon dioxide (CO2) underground into nearby deep geologic formations.

Grass blades with carbon capture written on them.

Image source: Getty Images.

Net-negative carbon emissions can be achieved by using biomass fuels to generate energy and then permanently storing carbon dioxide produced from the process. Because the biofuels consume carbon dioxide, the overall process removes greenhouse gas from the atmosphere. The proposed plant "is expected to remove about 300,000 tons of CO2 annually, which is equivalent to the emissions from electricity use of more than 65,000 U.S. homes," the companies said in a combined statement.

Schlumberger's New Energy segment, working with Chevron and Clean Energy Systems, plans to use Microsoft's cloud technologies to be able to commercialize energy production while addressing climate change at the same time. If successful, it would utilize approximately 200,000 tons of agricultural waste annually. 

The companies are immediately beginning the design and engineering stage, and plan to make a final investment decision in 2022. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Chevron Corporation Stock Quote
Chevron Corporation
$149.94 (1.61%) $2.37
Microsoft Corporation Stock Quote
Microsoft Corporation
$256.48 (-3.17%) $-8.41
Schlumberger Limited Stock Quote
Schlumberger Limited
$36.97 (3.01%) $1.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.