Chevron Joins Offshore Wind Bandwagon

Chevron Corporation’s venture capital arm and Moreld Ocean Wind has agreed to invest in Ocergy Inc’s development and commercialisation of floating offshore wind turbines.

The investment by Chevron Technology Ventures is its first in offshore wind. The size of the investments weren’t disclosed. Floating turbines would be useful in ocean areas which are too deep for fixed turbines.

“To my knowledge, this is the first investment by a US oil major in offshore wind,” said Anthony Logan, a senior analyst at Wood Mackenzie Ltd.

Floating wind turbines will become important as the US electrical grid increasingly depends on offshore wind power, Mr Logan said. “If you can get into those deeper waters, chances are you can build a system of offshore wind production which isn’t vulnerable to low wind or no-wind events,” he said.

The investment will also fund the development of an environmental monitoring buoy that will gather data and support biodiversity, Ocergy said in a news release on the 13^th April. The company has previously invested in onshore wind.

Moreld is owned by HitecVision, a private equity investor which specialises in European renewable energy.

Chevron’s deal with Ocergy doesn’t mark a strategic pivot to renewable energy, but part of a US$300 million-a-year plan to invest in early-stage technologies which may play a future role in the energy transition.

The company is unwilling to erode returns by investing aggressively in unfamiliar business where it doesn’t have a competitive advantage and sees oil and gas as its core products for year to come.

Source: Rigzone