HOUSTON & BOULDER, Colo. - Chevron New Energies (CNE), a subsidiary of Chevron U.S.A. Inc. (NYSE: CVX), has made a lead investment in ION Clean Energy (ION), a Boulder-based company specializing in carbon capture technology. The $45 million Series A financing will fund ION's growth and the commercial deployment of its ICE-31 liquid amine carbon capture technology, aimed at reducing emissions from hard-to-abate sectors.
CNE's investment in ION aligns with its strategy to develop a full carbon capture, utilization, and storage (CCUS) value chain. ION's ICE-31 technology is designed to capture high volumes of CO2 with low energy consumption and minimal degradation, targeting industries with high emissions and low CO2 concentration.
Chris Powers, Vice President of CCUS & Emerging at CNE, highlighted the potential of ION's technology in combination with Chevron's resources to address emissions on a global scale. ION's founder, Buz Brown, emphasized the technology's efficiency and the investment's role in accelerating its commercial deployment.
In conjunction with the investment, Timothy Vail will join ION as Chief Executive Officer, bringing experience from his previous roles at Arbor Renewable Gas, LLC, and G2X Energy, Inc.
The investment broadens Chevron's CCUS technology portfolio, complementing its existing solutions. CIBC (TSX:CM) Capital Markets acted as the financial advisor for ION during the capital raise.
This move is part of Chevron's broader commitment to lower carbon intensity across its operations and develop lower carbon businesses, including renewable fuels, hydrogen, and emerging technologies.
The information in this article is based on a press release statement.
InvestingPro Insights
Chevron Corporation's (NYSE: NYSE:CVX) strategic investment in ION Clean Energy underscores its commitment to expanding its carbon capture technology capabilities, a key component in the company's broader efforts to reduce carbon emissions. The financial robustness of Chevron supports such initiatives, as indicated by its substantial market capitalization of $297.98 billion and a solid P/E ratio of 13.08, reflecting investor confidence in the company's profitability and management efficiency.
The company's dedication to shareholder returns is evident through its impressive track record of raising its dividend for 36 consecutive years, a testament to its financial health and commitment to delivering value to its investors. This stability is further highlighted by the fact that Chevron operates with a moderate level of debt and has maintained dividend payments for 54 consecutive years, making it a potentially attractive option for income-focused investors.
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