Latest news with #JeffGustavson
Axios
29-05-2025
- Business
- Axios
Chevron exec says data center gas plans "moving very quickly"
Chevron's young business to build gas-fired plants that directly supply data centers is "moving very quickly," and final agreements with hyperscalers could come soon, Chevron New Energies president Jeff Gustavson tells Axios. Why it matters: Chevron's — and rival Exxon's — plunge into behind-the-meter power for data centers shows how the oil supermajors are moving to capitalize on AI's powerful energy thirst. "There's no reason the U.S., with its large, abundant natural resources, natural gas in particular, can't win this [AI] race," he said in an interview. Catch up quick: In January, Chevron and investment firm Engine No. 1 unveiled a partnership to deploy gas plants co-located with big data centers starting in 2027, using GE Vernova turbines. They envision up to four gigawatts eventually being deployed and are targeting the Southeast, Midwest and West. Driving the news: "If I were to highlight one state that we're really focused on in particular, it'd be Texas," he said, citing attributes like gas availability and state and local regulatory environments. It also has carbon storage potential for the projects, which could integrate climate tech in the future like CO2 capture and use of hydrogen in turbines. "Customers want a lower carbon pathway," he said. The intrigue: Gustavson noted Trump officials support enabling new power for AI. But Chevron's also watching the fluid tariff situation closely for how it could affect costs and equipment procurement timelines. "It introduces some uncertainty here," he said. The big picture: Chevron New Energies houses the energy giant's business lines on hydrogen, CO2 capture and storage, biofuels, and its exploration of opportunities in geothermal and lithium. Threat level: The House reconciliation plan to quickly end hydrogen tax credits could slow Chevron's plans, Gustavson said. "The cost of low-carbon or no-carbon hydrogen will be higher without that incentive. And so then it's basic supply and demand. When the price of something is higher, the demand is lower, and the pace of adoption will be slower," Gustavson said. He noted the lack of production incentives will make costs higher for customers. "We need to be able to generate a return to invest in anything in this space or any space. If you don't have customers that are willing to pay the price that we need, it will slow some of these projects." What we're watching: The next phases of the data center plan.
Yahoo
28-01-2025
- Business
- Yahoo
Chevron to build gas plants to power data centers amid AI boom
(Reuters) -Oil and gas producer Chevron said on Tuesday it plans to build natural gas-based power plants next to data centers in the U.S., as energy demand to support the growth of artificial intelligence is expected to boom. The second-largest U.S. producer is partnering with investment firm Engine No. 1 and electric services company GE Vernova on the project. Chevron's announcement comes a day after Chinese startup DeepSeek unveiled an AI model that it says uses far less computing power than industry-leading models in the United States, prompting investors to question the billions of dollars spent on AI infrastructure and sparking a massive sell-off in tech and power stocks. Despite the market's reaction, DeepSeek demonstrates the energy requirements that will be needed to support the United States' ability to compete in the global AI race, said Jeff Gustavson, president of Chevron New Energies, during a press briefing. "It underscores how competitive and fast-moving this is," he said. "We still see the growth in electricity demand." The project will use GE Vernova's natural gas turbines to deliver up to 4 gigawatts of power - enough to power roughly 3 million homes - to data centers located in the U.S. Southeast, Midwest and West regions. The power will initially bypass the existing transmission grid, which reduces the risk of raising electricity costs for households and consumers, the company said. Chevron said it is in conversations with multiple potential customers to determine the locations of the data centers and power plants, declining to name who it is speaking with. Chevron expects to begin initial service by the end of 2027, with the potential for project expansion beyond the 4-GW capacity. "President Trump's pro-American energy policies and commitment to energy and AI dominance give us the confidence to invest in projects that will create American jobs and strengthen our national security," Chevron CEO Mike Wirth said in a statement. The projects are also expected to be designed to potentially integrate carbon capture and storage, and renewable energy resources.
