Chevron’s CEO Michael Wirth told CNBC that the company would prefer pay dividends to shareholders than invest in wind and solar power projects, which produce minimal financial returns.
“Wind and solar are two areas where Wirth has decided not to invest. “We’ve determined that management in our firm can’t produce value for shareholders by moving into wind and solar since the returns are really being bid down.”
However, Wirth believes that “green hydrogen will play a significant role” in the energy transition.
“We have a track record of careful capital allocation in our traditional company, in mergers and acquisitions, and we want to apply it to our new energies business as well,” added the CEO.
Chevron aims to more than increase its capital investment in its lower-carbon energy operations to $10 billion by 2028, according to Wirth.
