(Bloomberg) -- Chevron Corp. is creating a new business division focused on scaling up new technologies such as carbon capture and hydrogen, the latest example of how Big Oil is positioning for the energy transition.
Jeff Gustavson, 49, will become president of the unit, called Chevron New Energies, effective Aug. 2, the U.S. oil giant said Thursday in a statement. He's currently vice president of the company's North America exploration and production business, and oversees Chevron's operations in the Permian Basin, where it's one of the biggest producers. Ryder Booth, 52, will succeed Gustavson in those positions.
“Chevron New Energies' initial focus will include commercialization opportunities in hydrogen, carbon capture, and offsets and support of ongoing growth in biofuels,” the company said.
The new unit and the appointment of Gustavson signal a step change in Chevron's ambitions for lower carbon investments and biofuels. It follows a similar move by rival Exxon Mobil Corp., which created its own low-carbon division in February. Unlike some of their European rivals, both U.S. supermajors have committed to oil and gas for the long-term and declined to make a net-zero emissions pledge, despite pressure from investors to improve their climate credentials.
Gustavson will report directly to Chief Executive Officer Mike Wirth. The company said it plans to provide further details on the new business unit in an investor presentation on Sept. 14.
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